Vy Capital holds approximately 3.4 percent of SpaceX, valued at around $40 billion, making it the fifth-largest shareholder—a stake larger than the disclosed holdings of Sequoia Capital or a16z.
The firm's $50 billion in assets under management represents a near doubling from $27 billion a year ago. Since its 2014 founding, Vy Capital has generated a 41 percent IRR and distributed $4.6 billion to investors. It stopped accepting new external capital last year.
Vy Capital's SpaceX position traces to 2016, when the company was valued at $15 billion. An investor letter stated the firm expects SpaceX's valuation to exceed $10 trillion within five to seven years—a projection that reflects both the firm's conviction and the bet sizing required to achieve it.
The four-person core team, based in California, London and Dubai, has concentrated its strategy on Musk's ecosystem. Vy Capital is the largest outside investor in both The Boring Company and Neuralink, and committed $700 million to Musk's 2022 acquisition of Twitter, since rebranded as X.
In February, SpaceX acquired xAI, a venture in which Vy Capital held a stake. The deal illustrated the capital recycling dynamic within Musk's network.
Vy Capital's model—small team, no external fundraising cycle, concentrated portfolio—inverts the venture playbook. Most firms chase diversification and scale to reduce single-company risk. Vy Capital compounds its own capital with concentrated conviction.
