Private Space Investors Prepare for Windfalls

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

I’ll be honest… going to space is not at the top of my bucket list.

A concept art of an astronaut with a space secene behind.

Source: Shutterstock

I mean, if the opportunity presented itself and I didn’t have to sell my right leg, I’d happily jump into a rocket so I could see earth from an astronaut’s point of view.

I’m currently more interested in earth-based activities at the moment. Fast cars, big waves, and spending time with my kids…

But as an investor, the space industry is extremely enticing right now.

Going to space is nothing new. We humans have actually made some pretty significant accomplishments over the past several decades… accomplishments that far surpass the recent achievements by Virgin Galactic (NYSE:SPCE), BlueOrigin, and SpaceX.

That’s not to say that each of these companies haven’t developed impressive technology. SpaceX, in particular, has wowed the world with their ability to land rockets vertically, both on land and in the sea. They first did this back in 2016.

However, each of these companies have yet to accomplished anything groundbreaking… like taking people to another planet.

But that doesn’t really matter…

What matters is that each of these non-government companies have opened the minds of the entire world…

People now see the enormous potential with space travel…

And they dream about partaking in these adventures in the near future.

The resulting economic catalyst will be enormous.

The Space Industry Right Now

Essentially, space travel is now open to the broader public. This will create a boom within the aeronautical and space industry that will be fueled by private investors (instead of governments).

Right now, private space companies SpaceX and Blue Origin are worth more than Sir Richard Branson’s publicly traded Virgin Galactic…

Blue Origin’s annual space tourism sales have already surpassed $100 million, while SpaceX’s valuation is over $100 billion. These are serious numbers…

Now these companies have to figure out how to spend money intelligently to continue growing.

The Best Bet for Growth

What many retail investors often don’t understand is how large corporations grow. Growing a multi-billion-dollar company into a hundred-billion-dollar company is unbelievably difficult. Maintaining current operations while at the same time developing cutting-edge technologies is extremely risky.

That’s why most large corporations acquire smaller companies that focus on world-changing ideas. It’s far safer to acquire a small company that has already developed something groundbreaking instead of trying to develop something expensive in-house that may fail.

That’s how the world’s greatest companies grow… they acquire smaller companies and integrate them into the bigger operation.

Google (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Ford (NYSE:F), and pretty much any major corporation buys disruptive technology to continue their growth.

And that’s exactly what’s going to start happening in the private space industry.  

Branson’s Virgin Galactic, Musk’s SpaceX, Bezos’ Blue Origin, and many other private space companies are already buying small private companies with unique IP (intellectual property). As the new space race accelerates, this trend of buying private space companies is certain to accelerate.

This will result in private investors making enormous profits. Early investors who bought into private companies currently valued in the tens of millions will likely see more than 1,000% returns — and much more.

One great place to find private investing opportunities in space is Spaced Ventures. Spaced Ventures is an equity crowdfunding platform that specialize in… you guessed it… space.

There are a handful of deals on there right now, and a couple coming soon.

Here is what’s available now:

  • Infinite Composites develops and manufactures advanced composite pressure vessels and structures which are necessary for space travel.
  • Exo-Space builds add-on artificial intelligence (AI) capabilities for Earth Observing Satellites.
  • Cosmic Shielding Corporation develops multifunctional composites unlock previously unattainable levels of performance and reliability in space.

All of these companies are currently raising funding, and you do not need to be an accredited investor to participate. Anyone can invest in these companies right now!

Infinite Composite you may already be familiar with. The company was one of three I highlighted in your special report, Top 3 Private Company Investments for 2022.

But full disclosure, I have not personally done any due diligence on the other two companies. And I would never invest in any company, unless I spend almost a month investigating every square inch of their business operations.

However, statistically speaking, there will be an acquisition spree in the coming future in the space tech industry. These new major private space companies will have cash on their books, and even more important, shares that they can use as currency to acquire smaller companies.

Private early-stage investors will see enormous windfalls as this trend accelerates.

The most exciting is that we’ll be there to participate in this trend. I’m already in discussion with the top space tech incubator in the world, so we can get access to the best companies that will likely go on to get acquired for big bucks… stay tuned!

On the date of publication, Cody Shirk did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

By focusing on megatrends that will shape the future, Cody Shirk uncovers generational wealth in the private investing space. To make sure you never miss Venture Capital Digest, click here to subscribe.

The post Private Space Investors Prepare for Windfalls appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Stocks Videos


InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

Learn More