Rodriques: Private markets are seeing staggering growth rates

Core Insights - SpaceX is reportedly reaching a valuation of $800 billion, indicating strong demand for its shares and significant growth over the past year [1][2] - The company raised its valuation from $250 billion last December, effectively tripling in value within 12 months [2] - The private market is experiencing a divergence from the public market, with notable confidence in companies like SpaceX despite risks associated with space ventures and data center construction [3][4] Company Performance - SpaceX has executed well over the past decade, with rumors of high profitability and impressive growth rates [5] - The AI sector has seen substantial growth, with increases of 169% year-to-date, contributing to the overall positive sentiment in private markets [5] - SpaceX's projected revenue is estimated to be between $15 billion this year and $22-24 billion next year, showcasing remarkable growth [13] Market Dynamics - Investors are focusing on long-term growth in the private market, preferring to invest at earlier stages rather than at peak valuations [6] - There is a significant amount of capital available in the private market, particularly in the AI sector, with 16 IPOs anticipated for 2026 [8] - The average return for private companies reaching a billion-dollar valuation over the past six years is approximately 65% per year [10] Valuation Concerns - Despite high valuations for companies like SpaceX, OpenAI, and Anthropic, there are no significant bubble concerns as these companies continue to demonstrate strong growth [12][17] - The entire private market index has increased by around 65% this year, indicating broad growth beyond just AI companies [17] - The influx of investors into private markets is expected to continue, especially with major firms like Charles Schwab entering the space [18]