Starlink IPO Will Fund Mars Colony (SpaceX)

Starlink IPO Will Fund Mars Colony (SpaceX)


Hey, I’m Steven and this is Solving The
Money Problem. If you’re new, welcome. If you’re not, welcome back. SpaceX president and COO Gwynne Shotwell recently
said the company may spin off Starlink for an IPO. This is massive. Let me tell you a quick story. I’m a HUGE space and science nerd. I inherited this fascination from my father. Since I was a child I’ve had goals of seeing
earth from orbit and visiting the moon. Carl Sagan was my first role model and I’ve
been following the progress of SpaceX since day one–almost HALF my lifetime. I’ve also bugged SpaceX during previous
capital raises to learn what I’d need to bring to the table. Lets just say I was a few dollars short. And for years, I’ve been telling anyone
who’ll listen, if SpaceX IPO, I’m going in. BIG. But don’t take my word for it. Here’s a forum post I made in 2015, showing
how I’d build a hypothetical stock portfolio. Note my biggest position was SpaceX with 10
times more capital allocation than Tesla. And now, let’s go back to 2014 and read
some excerpts from this email I sent to my dad, just after SpaceX announced plans to
launch what we now know as Starlink, the very subject of this video: Only half the world has internet access, and
where access is freely available (uncensored) people flourish and prosper. Elon Musk (SpaceX, Tesla, SolarCity and ex-PayPal)
commented about his plans to provide a swarm of satellites to provide internet access everywhere. If he is successful in achieving this, it
will be the most significantly positive thing to happen on earth. Look at what the internet has already done
with only half of us connected, and contributing. He has the capital and the belief, so it will
happen whether he has to fund it personally, or not. He will no doubt be able to build SpaceX massive
credibility (and value–if they go public, buy shares!) by using the company to launch
this global network. My thoughts have not changed. Starlink is a seriously big deal for both
SpaceX and humanity. Let’s look at why. The Economics I shed tears of joy watching the live stream
of SpaceX’s first successful landing of a falcon 9 booster stage. Lucky my then girlfriend wasn’t around to
see the tears because she was under the impression I’m an emotionless robot. For a lifelong space nerd, this rocket recovery
marked the single most important step towards an exciting future, and from a business point
of view, the start of a truly gargantuan disruption. To date, SpaceX is the ONLY company who can
re-use their orbital-class rockets. This brings their launch costs down a STAGGERING
amount. As Elon Musk has famously said, single use
rockets are pretty dumb. Imagine if cars or planes were single use. Transport would be prohibitively expensive. SpaceX has such a huge economic advantage. Longterm, the cost of reusable rockets will
be about two orders of magnitude LESS than the dumb kind of rockets — those you can
only use once. We don’t even need to use a calculator to
realise this gives SpaceX an incredible competitive advantage. Not only can they launch other people’s
stuff for pennies on the dollar, but they can launch their OWN stuff which creates an
opportunity to do things that literally NO OTHER COMPANY ON PLANET EARTH CAN, like Starlink. For anyone to attempt to compete with Starlink,
they will be BLEEDING money on launches. Jeff Bezos’ Blue Origin plans to compete
directly, but appears to be YEARS away from mastering reusable rockets. Meanwhile, Starlink is soon to serve its first
customers. This first-mover advantage is bigger than
it seems because right now, NO ONE–LITERALLY NO ONE–can compete. Launch costs alone mean to get up and running,
a competitor would need to spend STUPID money and then how will they operate? Offering your service for a competitive price
against someone whose costs are a fraction of yours, while maintaining similar pricing
and margins, is kind of impossible. Either your margins suffer, or your prices
suck. One more time. LITERALLY NO ONE CAN COMPETE WITH STARLINK
TODAY. In a few years, this may change. But how much market share will Starlink acquire
between now and then? Information Access Solves Problems Access to information can solve almost any
problem from religion to poverty. How much would I have to pay you for you to
agree to give up access to the internet for the rest of your life? Yeah, exactly. This is a big deal. It isn’t about being the fastest, or the
cheapest. It’s about being ubiquitous. If a poor farmer in Africa can get online
and learn about increasing yields, better irrigation techniques, check pricing online
and compete with others, this will have a direct, and profound impact on their quality
of living. If an isolated child in the jungles of Peru
can access the internet and learn to code, she may lift her family, and her village out
of poverty. I could go on but you get the point. I hope. Giving people instant access to the world’s
knowledge, and the ability to connect with and interact with people anywhere on earth
will have a profoundly positive impact and a huge ripple effect. Earth Is Big. Infrastructure Is Expensive. Earth is REALLY big. People tend to cluster in cities, where in
the developed world, communications infrastructure is pretty great. But what about everywhere that isn’t a city? Which is the vast,VAST majority of the surface
of our planet? Anyone who’s been out at sea, trekked through
the Amazon, lived in Australia or wandered from the confines of their city will soon
discover that most of the world has either no–or terrible–internet access. It’s not cost effective to build the same
communications infrastructure to serve 100 people as 100,000. Or 1 million. So this makes sense. Starlink solves this. No power lines. No digging. No underground cables. No BS. Just ubiquitous internet access. And it won’t age. Starlink satellites have a short lifespan
and will constantly be replenished with better tech. This means Sarlink will avoid becoming out
of date. Again, good luck staying competitive with
Starlink if they can launch improved satellites for pennies on the dollar but you can’t. Special Use Cases Starlink won’t make sense for everyone but
it will be incredibly valuable for special use cases. Many of these customers have deep pockets. Think planes, boats, the military, isolated
islands, mountain tops, deserts, jungles, the poles, even entire governments whose countries
currently have abysmal internet access. How much would you pay for lightning fast
internet access where today, limited or NO internet access is possible? Exactly. RIP Monopolies Another point is that Starlink will disrupt
monopolies. Having lived in Australia for most of my life,
I can tell you straight, the most popular telecommunications company is also the worst. Their coverage is the widest but their prices
suck harder than a vacuum, their customer service is non laughable and they’re just
straight garbage. Without strong competing forces, they can
suck, and still thrive. Because they have the best infrastructure,
no one can compete on their coverage UNLESS they are willing to invest countless billions
in developing superior infrastructure. Not gonna happen. Enter Starlink. The days are truly numbers for the monopolies
out there. No longer will they retain intelligent customers
while offering garbage pricing and garbage service . It’s not all going to be a perfectly smooth
ride. SpaceX will need to negotiate with hundreds,
if not thousands of local governments and lawmakers to enable Starlink access globally,
and Starlkink will NOT be the best or most suitable option for everyone. But I’m sure of a few things. Today, literally no one else CAN compete with
Starlkink. They have a free run until SOMEONE else can
master rocket reusability. This is so important I want to repeat it 100
times. But I won’t. Providing ubiquitous internet access to literally
every square inch of the planet effectively means every single human on earth COULD be
a Starlkink customer. They won’t, but what other company has such
a pool of potential customers? ZERO. In my opinion, Starlink will grow to become
one of the most valuable companies in the world. And that brings us to Mars. Elon Musk is smarter than you. Elon Musk sets goals, creates a plan for their
attainment, then executes on that plan. Starlink is how SpaceX will fund the colonization
of mars. Somewhere on the order of 1000 Starships and
2 decades will be needed to seed the Mars colony. It’s not gonna be cheap, or easy. But it needs to happen. By the way, to everyone about to explain in
the comments how we should save this planet before we think about colonizing another,
you don’t get it. Let’s fix that. Earth is vulnerable. Do you know what a nearby gamma ray burst
could do to all life on earth in an instant? What about an impact event? Or a supervolcano? Or a malicious AI? Or any of the countless other extinction-level
events that we currently have literally ZERO means of preventing or protecting ourselves
against. We NEED a backup. Yes, we should do everything we can to preserve
the earth. This isn’t about abandoning our home planet,
it’s insurance. If you still don’t get it, I highly encourage
you to explain in the comments why backing up life is NOT a wise idea. By the way, self-hatred is not a valid reason. So, with high margins, a huge first mover
advantage and a total absence of ANY competition until they solve the MAJOR challenge of reusable
rockets, Starlink will bring in tens of billions in profits, funding the construction of countless
Starships and ultimately build the foundation of a self-sustaining Mars colony. Should Starlkink IPO, I will be investing
for the long term. After all, I plan to visit the colony it funds. Let me sum it up. SpaceX is on the cusp of serving its first
Starlink customers with a swarm of satellites already in orbit. Meanwhile, everyone else is still trying to
figure out how to build a rocket to cost-effectively launch their satellites. Their only other options are to pay through
the nose or contract SpaceX to do their launches. And just finally, for the record, I think
this is a genius move. IPOing SpaceX would be a disaster. Too much innovation, too many setbacks, too
much drama, too much distraction by the stock price. But spinning off Starlink for an IPO makes
a load of sense. Once up and running, it’s a simple, high
revenue, high margin subscription service. For the space nerds, stay tuned to the end
for a little bonus content. I’m Steven Mark Ryan, this is Solving The
Money Problem, and I love you all. Thanks so much for watching. Let me know your thoughts in the comments
below. Are you going to buy Starlink if it IPOs? Do you like the idea? How do you see anyone competing with Starlink? And of course, if you have any ideas for future
videos, let me know. I read ALL your comments. p.s. If you’re still watching, you’re AWESOME. This channel has kind of blown up since it
launched and I’m working on making the best possible content for you guys, but it takes
time. Consider supporting the channel at http://patreon.com/solvingthemoneyproblem
so I can continue creating content for you guys. There’s a link in the description. Either way, the best form of support is you
being here and watching, so thanks again.

100 thoughts on “Starlink IPO Will Fund Mars Colony (SpaceX)

  1. Hey Stephen, I get that colonizing Mars is very important in the large picture, but how is that going to be profitable from an investor view point?

  2. The one thing that I'm curious about, is how they're going to bring internet to people in remote places that can't buy a subscribtion because they don't have internet yet. Seems like a bit of a problem there

  3. So SpaceX are short on money when it comes to finish starlink in time while running the rest of its operations?
    Why else would they IPO starlink? If not to raise money fast?

  4. Would for sure buy into Starlink, as would I any EM company that would have a positive impact.
    You are making a positive impact yourself Steven, keep up the good work!

  5. I have been watching your videos ever since you convinced me that Tesla was going to be HUGE. I am not the typical nerd, but I love everything science and space related. I am so IN on Starlink, and you brought up a great point. You made me realize how big Starlink will be and how is going to change lives, even in those remote countries and locations. Cant wait for Starlink going IPO…I am READY!!! Thanks for the excellent content, as always. Much love and appreciation dude!

  6. Saving as much as possible from selling fibre optic internet service in Canada to load up on Starlink IPO when it launches. Truly once in a lifetime opportunity

  7. Any opinion about Virgin Galactic? Of course not the most disruptive company like Tesla or Spacex, but it will (not now) provide more accessible and affordable choice of space travel for people.

  8. Another reason that Starlink spinoff make sense is that will allow Starlink to use other satellite launch vendors in the future. Starlink's main cost will be replenishing the constellation. SpaceX could have it's hands full with all its other customers and another company/country might offer Starlink launch services at a lower cost.

    Also, I think the spinoff allows SpaceX to give it's employees a way of cashing in some of their SpaceX equity if they need it.

  9. Don't know about funding a Mars colony. I think forming anything on Mars is a stupid idea. Imagine the instrastructure required… just think about a simple small town and all that is needed. No one will visit you. Just move to a remote town or island. As for the Starlink IPO, I'll invest in it, maybe $50k and see where it goes.

  10. The vision of those two boosters touching down ranks with Neil Armstrong’s first step on the moon. You weren’t the only to tear-up in amazement. (People who wonder if Tesla can auto-pilot a car safely from point to point on mapped roads should ponder what’s involved in guiding a falling rocket through the trackless buffeting atmosphere and landing perfectly on its tail in what is essentially a parking spot.)

  11. It might have been OK to indulge in science fiction when you were a boy. However, when you grow up, you need to cast aside these fantasy delusions, and face reality; differentiate between reality and illusion. On the lighter side, we sane ones do get a laugh when we hear about plans to make rocket fuel from the rocks on Mars. Plans, visions, aspirations, but nothing so far achieved. We cannot even get men beyond the earth's atmosphere. There no doubt will be some money to be made, however, and a hoax perpetuated.

  12. I see nearly every large village in Africa and Indonesia having one or two Starlink connections, often powered by solar PV, to serve a community of 500-2000.

  13. I also foresee the return of the Golden Horde to the Gobi desert, riding solar-powered Cybertrucks, connected by StarLink, and hacking a global data empire. Just kidding. Sort of.

  14. Will invest in StarLink. SpaceX can’t go public-they have a mission, and the business plan is a way to pay for it. An IPO would put the cart before the horse.

  15. I would love to see a video comparing the advantages of StarLink's service vs. existing satellite ISPs, cellular 4G, and cellular 5G.

  16. To add to a great video: Starlink also has the potential to influence HFT. This market might seize a large part of the initial available bandwidth on day one.

  17. Could you make a video on OBRIST MARK 2. Seems to be a hybrid that can go 1000km. But it’s a hybrid. I’m sure I know what your thoughts are but a video might be nice.

  18. Sorry for being a troll but you are so annoying constantly referring to yourself. I want to know about the goddam satellites, not if your "girlfriend" thinks you"re a robot.

  19. I just hope that you'll still be making videos when it goes public since I have very little time to stay online daily and you are my main and most reliable source of information about Elon Musk and his companies

  20. I will definitely be loading up on the IPO. What I am still trying to figure out is how cloudy weather will affect internet speeds. Any insights?

  21. I love you points but I have a question

    Starlink main advantage would be because savings of lifting satellite into orbit

    What percentage of a telecommunications company is this cost?

    This isn't rolling, this is a real question

    If it's not a good-sized percentage, then rocketry does not give it a huge advantage

    Agree or disagree?

  22. Rocket reusability helps but honestly the cost of the satellites themselves is really where the savings is. Reusable rockets is the main reason you can have a 30k satellite constellation vs a constellation of 800

  23. there is no outer space future. if you believe that there is an outer space future then you are living a TV generated sci-fi hallucination hologram

  24. I live in country Australia & my nbn internet is excellent nice fast 45mbps, compared to when i had dial up at a speed of 2.5 – 4.5 kbps

  25. 1st thing you mentioned "Gamma Ray" burst, nearly no chance it will happen, while most people don't have time to bother about their own cities, you want one on another planet. I mean it sounds good to you that poor people will pay for the city in exchange for what ? Coding lessons and Instagram shame ? I doubt there will be more revenue than just to barely cover the semi-reusable rockets made. You understand that people who grow up in villages have little chance to work in cities, so it's Africa's problems, not Musks. Internet only helps you to find jobs, but not to get hired. People in LA go broke from applying to coding schools on salary contracts and you see African population making a difference ? I'm not a conservative but I probably fucking am. You see, there is not that much that can be done in terms of finding jobs. Most companies that are worth your presence are hiring graduates and minimum experienced, while most people work in retail and call centers where most big companies also demand experience in sales, now what kind of information does internet allow you to learn to get these jobs, none but a nice way to say youve read the company's website and history. Therefore betting that internet access outside of cities will fund anything is a funny business. Don't get me wrong, you can't hate Elon, he's done what he set to do with his companies, but I think Starlink is just a way of handling philanthropy to the public. On the other hand, SpaceX is really going to fund everything, from NASA interest and private launches.

  26. Great content mate.
    The Mars thin atmosphere would be a worry too as the Sunburst would also affect it…

    So yes that would need sorting asap.

  27. A word of warning: Stock prices usually fall after the IPO and it may take years to first exceed the first day price. Starlink may easily be an exception, though.

  28. My reverse ask,…why is it so important that "humanity" continues into the future?
    We're just a tiny blip on the radar on the grand universal scale.

  29. Religion is not a problem to solve. You can stop stroking yourself off over your belief that a dumb universe oopsed unfathomably complex life into existence. If anything, your graph just shows that stupid ideas flow more quickly than intelligent ones, which is demonstrated perfectly in Instagram comments, if you ever have the displeasure if seeing that.

  30. This makes no sense. Regulations would prevent SpaceX using Starlink as a slush fund after an IPO. It is best for Starlink to remain private as part of SpaceX for a few years to fund the Mars Missions.

  31. So much stupidity in this video. 1) Star link will be a monopoly. A Global monopoly. 2) Any Internet company could potentially reach every person on earth. 3) Gama ray burst would destroy life on mars as well.

  32. what happens when you can have starlink in your pocket… thats what we need to get to inorder to sustain information on mars

  33. Starlink IPO…. Top shelf pick. I can't wait.
    P.S. Thanks for making such great content, you're awesome!! If for nothing else, it is the quality and quantity of factual information that keeps me coming back. Keep up the good work👍🏿

  34. Too cool, I’ve been trying to explain much of this to people for years, but many don’t want to hear. Don’t know what internet access to someone in a mud hut will do, but all our ancestors lived in caves or mud huts so we will have to wait and see. If you make it to Mars, I’ll buy you a beer.

  35. Hoping our Criminal government in Australia will allow Starlink services to compete with Telstras garbage Internet. .
    Im thinking there going to have to be many brown paper bags full of cash under the table for our politicians and buracats for this to happen.
    Thats how business is done in this country.

  36. Great set video mate. Looking at the Starlink IPO perspective just woke me up a bit, as it totally makes sense in numerous ways. Primary being providing internet but if it goes public, it will surely provide seed money for Mars missions by SpaceX. Yout got a new subscriber )

  37. When Nigeria was opened up to high-speed internet I got know the lawyer of a prince very well. With my help, we could get 10 million out of the country.

  38. I'd like to support your channel with Bitcoin Cash (BCH) rather than through Patreon. Bitcoin Cash is peer-to-peer electronic cash system and very popular in Australia the home of the Bitcoin Cash City (https://bitcoincashcity.com). Solving the Money Problem should include a Bitcoin Cash aspect as BCH is designed to be the first global electronic cash system. Today, 96% of all physical merchant cryptocurrency trade in Australia is in BCH. Put up a BCH QRcode and see what happens.

  39. i dont think normal people will have have a chance at getting in on the IPO, but i will try to get on the wagon as soon as us peons are allowed.

  40. I'm new to investing and I was wondering if there's anyway to predict how much shares will be before the company goes public?

    Edit: Also fellow space nerd and Elon Musk fan glad to find someone that agrees

  41. We don't care about you mate just give us the details of the story. Video starts at 1:50. Put that shit in a different kind of video or at least at the end of the video ffs.

  42. Just two small quibbles with an otherwise good video:
    1) Mars would suffer the same fate as Earth from a nearby gamma ray burst.
    2) Malicious A.I. on Earth could get to Mars at least as quickly as any human… and quite possibly at the speed of light.

  43. the uncensored internet is what makes countries prosper? Weird idea. China is getting mad rich, with a censored internet. And lots of countries were mad rich before the internet existed. Also, i would be very surprised if having the internet in itself could make the poor countries rich. You kind of need some other things too. Bums on the street have smart phones and internet access. Doesn't perform miracles

  44. Elon Musk can't be a decision maker at Starlink, and he knows this. Any spinoff/IPO deal must ensure this for Starlink to succeed. The reason is simple. China. Starlink internet access in China is a real danger for the regime. China has spent a lot of money and successfully bullied Google and others to maintain their great firewall. China will want to use any levers it has ensure that Starlink internet access isn't available in China. Musk's GigaFactory is a very good lever as is access to the Chinese market for Tesla. If Elon doesn't have the power to force Starlink to accommodate China, his other Chinese properties should be fine. If he has control of Starlink though…

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