U.S. university endowments to realize significant profits from SpaceX IPO

Huo Xing Cai Jing reports, according to The Wall Street Journal, SpaceX’s upcoming IPO is expected to generate substantial paper gains for university endowments across the United States. The University of North Carolina system has allocated approximately 10% of its endowment to SpaceX, primarily through early investments in Peter Thiel’s Founders Fund. Washington University in St. Louis holds more than 15% of its endowment in SpaceX, having invested alongside Vy Capital in 2018. Stanford University also holds a significant stake in SpaceX indirectly through institutional investors including Founders Fund, Sequoia Capital, Andreessen Horowitz, Thrive Capital, and Darsana. SpaceX has evolved from a rocket launch company into an internet provider, social media platform, and AI firm, with its valuation surging from $140 billion in December 2022 to approximately $1.77 trillion at its recent IPO pricing. Some institutions have already begun reducing their positions on the secondary market to lock in gains—for example, Washington University has sold part of its stake. Although the paper gains are substantial, endowment usage is legally restricted, meaning universities may not have full discretion over how to utilize these proceeds.