SpaceX IPO Sends Wealth Managers Courting Former Engineer
Scott Morton, founder of Revel, received handwritten letters and swag from firms seeking to manage his SpaceX equity after the company went public Friday.
businesstoday.inScott Morton, founder and CEO of Los Angeles-based software company Revel, said wealth managers began contacting him at home and through LinkedIn in the months before SpaceX went public. One firm sent a handwritten letter to his residence asking to represent him. Another delivered branded merchandise and a backpack.
Morton worked at SpaceX for nearly a decade, beginning as an intern and advancing to software engineering manager on the Starship spacecraft project. He grew up in Wisconsin in a family he described as not super financially literate. He still holds SpaceX stock after selling portions through company-organized secondary sales.
SpaceX went public Friday in the largest IPO in history. Its valuation rose above $2 trillion in early trading. Morton told Business Insider before the offering that the outcome represented a tremendous result for engineers, technicians, and even baristas at the company.
Morton said former SpaceX employees have discussed using proceeds for fast cars and high-end housing in Los Angeles. He declined to disclose the size of his own holdings and said he had not planned a large celebration, citing focus on his own startup. Revel develops software for controlling and testing hardware at rocket engine test sites, nuclear reactors, and industrial facilities.
The company raised $150 million in Series B funding in February. Morton said the IPO could increase attention on hard-tech startups and provide a halo effect for ventures founded by SpaceX alumni. He added that many current employees remain committed to SpaceX's mission, including plans for a moon base, and that he does not expect widespread departures.
5 billion sale to eBay, which helped launch the careers of Elon Musk, Peter Thiel, Reid Hoffman, and David Sacks. He also referenced the case of artist David Choe, who in 2005 accepted Facebook stock instead of a $60,000 cash payment for murals at the company's headquarters; those shares were later valued at $200 million, according to CNBC reporting cited by Business Insider.
