Vy Capital discloses holding $40 billion in SpaceX shares, becoming the company’s fifth-largest shareholder.

According to a Financial Times report, low-profile venture capital firm Vy Capital currently holds SpaceX shares worth roughly $40 billion, representing approximately a 3.4% stake. Per Bloomberg data, the firm is now SpaceX’s fifth-largest shareholder, with disclosed holdings exceeding those of Silicon Valley peers including Sequoia Capital and Andreessen Horowitz. Vy Capital first invested in SpaceX in 2016, when the company was valued at around $15 billion. Following SpaceX’s public listing this year at a valuation of roughly $1.75 trillion, the value of its stake has grown significantly. Vy Capital is also the largest external investor in Elon Musk’s tunnel construction firm The Boring Company and brain-computer interface firm Neuralink, and committed $7 billion toward Musk’s 2022 acquisition of Twitter. The firm’s leader, John Hering, has a close relationship with Musk. Shortly after a Falcon 9 rocket launch failure in 2016, he invested over $100 million in SpaceX. Since 2019, he has contributed to Starlink’s early operations, including hiring staff and building financial models, and once held SpaceX employee credentials. Hering currently serves as a director of The Boring Company, and Vy Capital also participated in the firm’s recent $30 billion funding round. Vy Capital’s assets under management (AUM) rose from $27 billion at the end of last year to $50 billion as of June this year. In its investor letter, the firm noted that since its founding in 2014, it has delivered a total internal rate of return (IRR) of 41% and distributed $46 billion to investors. Vy Capital projects that if its investment thesis holds true, SpaceX’s valuation will exceed $10 trillion over the next five to seven years. The firm currently has just dozens of employees, with a core investment team of four, and stopped accepting external investors last year.