A single VC firm just turned patient capital into a $10 billion SpaceX position, and now they're raising funds specifically designed for the companies that never go public.
The Summary
- 137 Ventures holds roughly 1% of SpaceX, valued at approximately $10 billion, built through multiple investment rounds in Elon Musk's rocket company
- The firm is raising two new funds targeting startups choosing to remain private longer, positioning for a structural shift in how companies access growth capital
- SpaceX IPO timing creates a case study for long-hold venture investing as companies stay private deeper into their lifecycle
The Signal
The math here tells you everything about the new venture game. 137 Ventures built a $10 billion stake by writing multiple checks into SpaceX over time, not by getting lucky on a single early bet. That 1% position represents patient capital deployed into a company that's now worth roughly $1 trillion pre-IPO. The returns are generational, but the strategy is structural.
Justin Fishner-Wolfson, 137's founder, is watching SpaceX prepare to go public while simultaneously raising funds built for companies that won't. That's not a contradiction. It's recognition that the IPO is becoming an exit event for late-stage investors, not a milestone for company building.
"The windfall from SpaceX is being recycled into infrastructure for staying private longer."
The timing matters. SpaceX has operated as a private company for over two decades, accessing capital through secondary markets and private raises while maintaining control over its trajectory. That playbook, once rare, is becoming standard. Stripe stayed private for 13 years. OpenAI is private at a $157 billion valuation. Databricks, Anthropic, Canva – the pattern is everywhere.
Here's what changed:
- Secondary markets now provide liquidity without forcing companies public
- Growth-stage capital is abundant enough to fund billion-dollar burn rates
- Founder control has become non-negotiable, and public markets demand the opposite
137 Ventures is building funds specifically for this reality. Not early-stage shots on goal, but capital that follows companies through Series D, E, F, and beyond. The firm is betting that private will be the new normal for longer, and that patient capital positioned in the right names will outperform the spray-and-pray model.
The SpaceX position proves the thesis. One percent of a company that stayed private long enough to build reusable rockets, Starlink, and Mars ambitions is worth more than most VC funds return in total. The question isn't whether staying private works. It's whether traditional VC models can survive in a world where the best companies never need to IPO.
The Implication
If you're building something that requires a decade to mature, the capital landscape just got friendlier. Funds like 137's signal that growth capital is available for companies willing to play the long game, no exit pressure required. For founders, that means more optionality. For employees at these companies, it means secondary liquidity might replace IPO windfalls as the standard wealth creation path.
Watch where this capital flows next. If 137 can deploy billions into permanently private companies and generate SpaceX-sized returns, every other growth fund will follow. The IPO isn't dead, but it's no longer the only finish line that matters.