Within months of moving to San Francisco in 2011, I knew I wanted to invest in SpaceX. The problem was I had no access.
My opportunity finally came through my work with Addepar. I was working with 8VC at the time, and Addepar was basically our sister company. The CFO at Addepar had close connections with the Paypal mafia, and I finally had the opportunity to invest.
One of the investment associates at 8VC wanted to do a write up on SpaceX. He was probably the smartest person at the fund, and today manages one of the highest revenue business units in the world. His conclusion? There was no upside at a $4b valuation.
My other desk mate was dating Elon. Her conclusion? Brilliant but scattered. My boss? Putting in a tiny check would never be worth it, when we had deep access to so many other companies.
I was a little biased towards SpaceX. Science fiction was my first love. The most amazing thing I had seen in my life was a night time shuttle launch. And my deepest spiritual connection was to the stars and the cosmos.
So I justified it. Huge potential moat (reusable rockets) that should lead to a large net margin. Obvious momentum faster than competitors. Intelligent and motivated founder.
The lessons?
- Smart people can be correct about every little thing and still wrong on the big thing
- Connections are incredibly important to meet any goal
- Listen to yourself, especially with your passions
- Be patient. 3 years to invest. 12 years to IPO. 40% of my life in one investment.
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