Investing in Axiom Space | How to Buy Pre-IPO Shares

Axiom Space aims to make commercial space travel and tourism accessible to the masses. The company has been instrumental in driving the industry forward through its Axiom space modules. These crafts, combined with their goal to build the first commercial space station, could help propel research and national security applications moving forward.

As a leader in the space industry, Axiom Space has direct ties to government agencies like NASA. As such, it continues to attract investor attention. However, the company remains privately owned, meaning that you can't purchase shares like a normal stock. Here's how you can navigate the secondary markets to acquire access to Axiom Space pre-IPO shares.

What is Axiom Space?

Axiom Space is a leading aerospace R&D lab and manufacturing firm. The company creates a variety of products designed to provide access to low-Earth orbit and beyond. Notably, Axiom Space launched in 2016 and is based in Houston, Texas.

Its founders, Michael T. Suffredin and Dr. Kam Ghaffarian, recognized early on the potential of the emerging commercial spaceflight market.  Notably, Suffredin worked as an ISS Program Manager at NASA before launching the company. This insight and network have helped Axiom Space take the lead, bringing together several nations' space programs.

In 2020, Axiom Space inked a deal with Elon Musk's privately owned firm, SpaceX. The arrangement saw Axiom Space provide transportation to and from the ISS (International Space Station) for private astronauts. Fast forward two years, and the  Axiom Mission 1/Ax-1 mission officially began its journey to the ISS.

Axiom Extravehicular Mobility Unit (AxEMU)

The Axiom Extravehicular Mobility Unit (AxEMU) is an advanced spacesuit designed in partnership with NASA. The upgraded suit comes in more sizes than its predecessors and offers added mobility to the user. Additionally, the suits are optimized to work with the unique tools astronauts may require on their missions.

Source – Axiom Space

Axiom Space's goal was to create a space suit that would be suitable for work and life on Mars. They wanted the suit to provide enough flexibility that it would not hinder experimentation. Also, they created it with safety in mind. Consequently, the suit features full redundancy on all critical systems.

Astronaut Training

Axiom Space remains a leader in astronaut training offerings. The company provides microgravity environments that enable space travelers to monitor the impact of their actions in terms of health and performance.

The open nature of their offerings has enabled several countries to further their space programs, including the U.S., India, Poland, Hungary, Saudi Arabia, Brazil, Nigeria, and the UAE. Impressively, all of these nations sent astronauts to the ISS using Axiom Space modules.

Axiom Station

The Axiom Station will be the first commercial space station to take orbit in 2027. This craft will open the door for the space exploration, R&D, and tourism industries to expand. It will provide an agnostic approach to space travel, enabling all countries and companies to book time to conduct cutting-edge research and more.

Notably, Axiom Station is being built in close collaboration with NASA and Thales Alenia Space. It will include an area for people to stay and labs for experimentation. Businesses will be able to purchase turn-key space solutions and can even add modules as the station expands. Impressively, this modular design opens the door for many future applications.

Historical Funding Rounds

Summary of Axiom Space Funding:

Total Funding: Axiom Space secured $480M across 3 funding rounds

Largest Round: Axiom Space's largest funding round secured $350M on August 21, 2023.

Investors: A total of 30 institutional investors back Axiom Space

Latest Round: The latest funding round raised $350M and was a Series C round held on August 21, 2023.

Funding Rounds Breakdown:

• 2 Early-Stage
• 1 Late-Stage

Key Investors:

Axiom Space secured funding from C5 Capital, Starbridge Venture Capital, Hemisphere Ventures, The Venture Collective, Declaration Partners, TQS Advisors, AlJazira Capital, Boryung Pharmaceutical, and more.

Why Invest in Axiom Space?

There are many reasons why investing in Axiom Space could be a smart move. For one, the company is the industry leader, ranking first out of dozens of well-funded competitors. It continually pioneers new technologies and has hit several milestones since its launch.

Microgravity Experiments

There is a rush to conduct microgravity experiments, and Axiom Space has one of the best facilities to provide support for this research. The company has spent years developing its deep space technology and simulations. As such, it's carved a niche as a go-to provider for space-environment materials testing and more.

Axiom Space Could Dominate Space Tourism

The space tourism industry is on the rise. According to some analysts, the market could be worth $2.23 billion by the end of 2025. This growth comes from a boom in interest from the public and private sectors. Additionally, the industry has seen some cost reductions due to newer technologies like reusable rockets and more advanced spacecraft.

Source – Axiom Space

International Support

Axiom Space continues to empower nations to restart their space ventures. The company has support from several national agencies and a variety of top-performing commercial space firms. This network of experts provides Axiom Space direct access to the leading minds and innovators in their field, enabling the company to cherry-pick the best from across the industry.

Funding and Investor data sourced from Traxn

1. Pre-IPO Secondary Marketplace

Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, who are crucial to the company's pre-IPO growth.

Investing in pre-IPO shares of Axiom Space could offer strong returns if the company's valuation increases following its IPO. It's common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.

Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:

Eligibility: This approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify for access.

2. Private Equity Firms

Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.

3. Employee Equity Sales

Many consider employee equity sales as the best way to acquire pre-IPO shares in Axiom Space. This method of acquiring pre-IPO shares requires you to connect with former employees. It's common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has become more popular, leading to more pre-IPO share opportunities for investors.

Private Transactions: There are a lot of hoops you will need to jump through to complete a private pre-IPO transaction, including creating specific legal agreements, conducting valuations, and setting in place any limitations on the transfer of the asset.

Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.

There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:

Liquidity Risk

If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option.

These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO's completion, are met. It's even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.

Finding a Broker

If you meet the requirements and are comfortable with the risks, several platforms offer access to pre-IPO opportunities:

Forge Global: One of the largest private stock marketplaces, offering shares in late-stage startups like SpaceX, Stripe, and Databricks. Minimums typically start around $100,000.

EquityZen: A popular platform allowing accredited investors to buy into private companies with minimums as low as $5,000. Past offerings include companies like Discord and UiPath.

Rainmaker Securities: A full-service broker that helps source and negotiate private share sales, including opportunities in companies like OpenAI, Stripe, and Palantir.

Hiive: A newer platform with live bid/ask pricing for hundreds of private companies. Transparent and low-fee, with minimums starting around $25,000.

MicroVentures: Offers pooled access to late-stage companies through special purpose vehicles (SPVs), including past investments in SpaceX and Instacart.

EquityBee: Allows investors to fund employee stock option exercises at startups, often at discounted valuations, with minimums around $10,000.

Augment: A digital-first marketplace showing real-time pricing for pre-IPO shares, targeting tech-savvy investors and offering lower transaction fees.

StartEngine Private: Launched in late 2023, this platform offers accredited investors access to Regulation D offerings in later-stage, venture-backed companies. In its first nine months, it generated $16.5 million in revenue, with average investments around $32,000

Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.

Valuation of Axiom Space and Future IPO

Axiom Space received a valuation of $1.26B on Aug 21, 2023. The company secured this value through a combination of being the first mover in its industry, garnering strategic partnerships with leading firms like NASA, and offering a unique business model that can accommodate commercial, research, and military tasks.

Despite growing interest in the firm and its network, Axiom Space has not stated any plans to host an IPO in the coming months. The company appears to have its focus firmly on meeting its Axiom Station launch date in 2027.  Given the company's lofty goals and the high level of media coverage it could secure, there are many analysts who predict that the firm may delay going public until its Axiom Station launch is set in stone.

If Axiom Space does go public, it would be a unique opportunity to secure shares from an industry leader in the space sector. Investors who hold Axiom Space shares currently are banking on the fact that the company is leading the industry and has the full support of government agencies like NASA. All of these factors could help to drive share prices up sharply.

Investing in Axiom Space Pre-IPO Shares | Conclusion

Investing in Axiom Space Pre-IPO shares offers both increased reward and risk. The company continues to push space travel technology forward, and its goal to commercialize space tourism opens the door for new revenue streams. However, there are several risks that you should consider when discussing futuristic technologies, including that newer developments could render their current technology obsolete.

It's recommended that you consult a financial expert before making any pre-IPO share investments. You will need to do in-depth research into Axiom Space's pre-IPO share restrictions, which can include the inability to sell the shares before a certain date. For those who complete these tasks and qualify, Axiom Space Pre-IPO shares offer direct access to the space travel industry and more.

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Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.