Founders Fund's investment in SpaceX has now surpassed a value of $50 billion.

      Founders Fund's investment in SpaceX has turned into one of the most significant successes in venture capital. Peter Thiel's firm invested approximately $600 million in the rocket company, and at the IPO price, this stake is valued at over $50 billion. This represents around an 80-fold return, a scale of profit that few venture investments have achieved.

      According to Bloomberg, Founders Fund holds about three percent of SpaceX. The company set its initial public offering price at $135 per share, which gives it a valuation of roughly $1.8 trillion, making Elon Musk the first trillionaire. Thus, three percent of that valuation equates to about $53 billion.

      The Journey to Founders Fund's SpaceX Windfall

      This substantial payout took almost 20 years to realize. Founders Fund was one of SpaceX’s earliest external investors, first putting money into the company around 2008, a critical year when SpaceX nearly ran out of funds before the Falcon 1 rocket successfully reached orbit.

      The belief in SpaceX remained steadfast through many funding rounds, and it is now the firm’s largest investment. When Founders Fund raised an additional $6 billion this year, its SpaceX stake already significantly surpassed its other holdings.

      Founders Fund is not the only top investor benefiting. Andreessen Horowitz now has a stake worth over $10 billion, marking its highest return to date. A select group of early investors will collectively earn tens of billions from the IPO, which will also create around 4,000 millionaires among employees.

      The Drawback: It's Mainly Paper Wealth

      There is a crucial detail in that $50 billion figure—it represents the mark-to-IPO value rather than actual cash. Lock-up agreements typically prevent major shareholders from selling all their shares right after the IPO.

      Thus, while the gain is genuine, it hasn’t been completely realized yet. Founders Fund cannot divest its three percent stake on the first day without affecting the stock price. Additionally, the total value and details concerning the ownership are based on Bloomberg’s reporting, which has not been publicly confirmed by the firm.

      Moreover, the valuation itself is under scrutiny. A Danish pension fund has excluded the IPO from its investment strategy, arguing that it is overvalued and lacks proper governance. The filing also grants Musk and insiders substantial voting control.

      However, this does not detract from the financial success of Founders Fund. Thiel’s firm invested early, remained invested, and is now benefitting from one of the highest venture returns on record. The more challenging question lies with those investing at $135 per share; they are purchasing a future that the early investors have already begun to profit from.