Vy Capital, a Dubai investment firm led by Alexander Tamas, holds approximately 3.4% of Elon Musk’s SpaceX, valued near $40 billion. This stake places Vy Capital above well-known venture capitalists like Sequoia Capital and Andreessen Horowitz, highlighting a shift in influential private space investors.
- Vy Capital owns 3.4% of SpaceX, worth $40B
- Vy Capital is larger shareholder than Sequoia and Andreessen Horowitz
- Europe’s €15.6B IRIS2 satellite program targets 2030 launch
What happened
Vy Capital, a Dubai-based investment firm with a small core team, has quietly built a colossal stake in SpaceX, owning roughly 3.4% of the company. This stake is valued at about $40 billion, making Vy Capital the fifth-largest shareholder in SpaceX, a bigger holding than those of major venture capital firms Sequoia Capital and Andreessen Horowitz. The firm’s involvement in SpaceX dates back to 2016 when SpaceX was valued at around $15 billion.
Since then, Vy Capital’s assets under management have grown dramatically from $27 billion at the end of 2025 to $50 billion in mid-2026, driven mostly by this SpaceX position. Apart from SpaceX, Vy Capital has invested in other ventures linked to Elon Musk, including The Boring Company, Neuralink, and the financing of Musk’s Twitter acquisition.
Why it matters
Vy Capital’s significant stake in SpaceX highlights the growing influence of private investment from outside traditional Silicon Valley venture capital circles in high-profile space ventures. This stake surpassing those of established firms signals a shift in power dynamics in space technology financing and illustrates the rising importance of investors based in emerging financial hubs like Dubai.
At the same time, Europe is pursuing its own sovereign satellite constellation known as IRIS2, a capital-intensive project costing EUR 15.6 billion and planned to begin service in 2030. The scale and timing starkly contrast with SpaceX’s privately financed trajectory, underscoring the differences between public sector and private sector capabilities when it comes to space infrastructure investment.
What to watch next
Observers should monitor Vy Capital’s future moves in the space sector, particularly given its high reported internal rate of return of 41% and its choice to stop accepting new outside investor capital as of 2025. The firm’s outlook for SpaceX suggests the company could reach a valuation of $10 trillion within five to seven years, signaling massive potential growth in private space ventures.
On the sovereign front, Europe’s IRIS2 satellite constellation will be critical to watch as it aims to provide independent government connectivity and secure spectrum rights by 2030. The success or challenges faced by this project may reshape the competitive landscape between sovereign satellite programs and private operators like SpaceX.