SpaceX IPO Could Propel 'SpaceX Mafia' Startups, Investors Say

A potential initial public offering (IPO) for SpaceX is considered a "watershed moment for the space industry" by investors. This event is expected to facilitate a new wave of investment into burgeoning space companies, many of which are founded by former SpaceX employees.

Justus Parmar, CEO of Fortuna Investments, which has invested in both SpaceX and Tesla, stated that a SpaceX IPO could mirror the impact of the "PayPal Mafia" from the early 2000s, which saw former PayPal executives and founders go on to shape a new generation of technology companies. The expectation is that employees and investors who realize gains from a SpaceX IPO will redeploy their capital into these emerging ventures.

Members of the "SpaceX Mafia" have collectively raised billions in venture capital funding, according to data from PitchBook and company founders. These investments have come from prominent firms such as Andreessen Horowitz, 8VC, and Founders Fund, with some startups also participating in programs like Y Combinator.

Jamie Gull, a former SpaceX engineer and deep tech investor, noted that the IPO would provide liquidity for angel investing by the thousands of employee millionaires it is expected to create, enabling them to fund peer startups. Spencer Jackson, another former SpaceX engineer and founder of Critical Energy, which develops modular power plants, hopes the IPO will further boost the space industry, which has already benefited from SpaceX's growth, attracting substantial capital and encouraging risk-taking.

Among the startups highlighted is Airhart Aeronautics, co-founded by Nikita Ermoshkin, who previously served as an avionics systems responsible engineer at SpaceX for three years. Founded in May 2022, Airhart Aeronautics has raised $5.06 million and aims to build personal airplanes. Ermoshkin stated that his experience at SpaceX, particularly in extreme ownership, was crucial in preparing him for his current role.

Another example is Apex Space, co-founded by Max Benassi, a former senior propulsion engineer at SpaceX for six years. Established in September 2022, Apex Space has raised over $500 million and is involved in mass-manufacturing satellites. The company reportedly employs over 230 people.

According to Business Insider, a list of 18 startups founded by former SpaceX employees was first published in December.