The Next Great Frontier

Whenever investors discuss SpaceX, the conversation usually starts in the same place: valuation.

Is it worth $2 trillion? $3 trillion? Is it overhyped? Has all the upside already been priced in?

Those are reasonable questions. But they may not be the most interesting ones.

The more interesting question may be whether we are thinking about SpaceX the right way.

Most comparisons focus on other large companies. Some compare it to Nvidia. Others compare it to railroads, telecommunications companies, or defense contractors.

While there are lessons in each of those examples, there may be a better historical comparison hiding much further back in history: the Dutch East India Company, better known as the VOC.

Founded in 1602, the VOC is often remembered as a trading company that moved spices and goods around the world. In reality, it was much more than that. The company became the primary vehicle through which investors could gain exposure to one of the most important economic shifts of its time: the rise of global trade.

Investors were not simply buying a shipping company. They were buying participation in a rapidly expanding world economy. As trade routes grew, wealth expanded, and commerce connected distant parts of the world, the VOC sat at the center of it all. In many ways, it became a proxy for an entire economic theme.

That is what makes the comparison to SpaceX interesting.

Most people think of SpaceX as a rocket company. Rockets are certainly part of the story, but they may not be the story itself. Through Starlink, the company has built one of the largest satellite communication networks in the world. It plays a growing role in communications infrastructure, national security, and global connectivity. As demand for artificial intelligence, data transmission, and global communications continues to expand, the importance of space-based infrastructure may grow alongside it.

The real question may not be whether SpaceX launches rockets. The question may be whether SpaceX is helping build the infrastructure layer for an entirely new frontier.

History shows that major economic expansions often depend on foundational infrastructure. Global trade required shipping networks, industrialization required railroads, and the internet required fiber networks, semiconductors, and data centers. The companies that built these foundations often became defining businesses of their era because they enabled everything that followed.

This is why the opportunity around SpaceX may extend far beyond rockets. Satellites, communications, defense applications, manufacturing, energy transmission, and technologies that do not yet exist could all become part of a future space economy. If that happens, SpaceX may be remembered less as a rocket company and more as a key enabler of an entirely new ecosystem.

History also reminds us that transformational businesses and speculative excess often go hand in hand. Railroads changed the world and experienced bubbles. The internet changed the world and experienced bubbles. A bubble does not negate the underlying opportunity. Some of history's greatest businesses appeared expensive and controversial while building something entirely new.

Bottom Line

At MyTimeEquity (MTE), we believe some of the most compelling investment opportunities emerge when investors focus not just on today's business, but on the ecosystems those businesses may help create. While no one can know how large the commercial space economy may become, the possibility that SpaceX is helping unlock an entirely new frontier is what makes the story so compelling.

MTE previously provided investors access to SpaceX while it was still private, and we remain committed to identifying and sourcing similar opportunities tied to major technological and economic shifts in the years ahead.

The debate today is focused on valuation. History suggests the more important question may be whether we are underestimating the size of the opportunity itself. Recognizing transformative businesses before they become household names has long been a focus of our investment approach.

Let's talk, email us at wealth@mytimeequity.com and we’ll set up a time to discuss your investments strategy.

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