In a seismic shift that will send tremors through the Square Mile, SpaceX has overtaken Amazon in market value, a milestone that underscores the brutal reality of capital allocation in the 21st century. The private space firm, led by the mercurial Elon Musk, now boasts a valuation of $2.1 trillion against Amazon’s $2.
0 trillion, according to the latest secondary market trades. The news has reignited a perennial debate in Britain: why does our pension capital continue to flood into Silicon Valley while our own tech champions wither? The danger is that unless we redirect our savings, the next SpaceX will be born and scaled elsewhere.
British investors have long been criticised for their risk aversion. While US venture capital firms pour billions into speculative ventures, UK institutional investors hoard gilts and property. This is not just a lost opportunity.
It is a structural drain on the nation’s future productivity. Consider this: between 2010 and 2020, UK pension funds allocated just 6% of their assets to venture capital and private equity, compared with 18% in the United States. The result is a self-fulfilling prophecy.
Our most promising startups, from DeepMind to Arm, are snapped up by foreign buyers. The Treasury’s recent review of the UK listing rules, the ‘Edinburgh Reforms’, has done little to change the calculus. The real issue is demand.
Without a domestic investor base willing to take risks, companies simply go elsewhere. SpaceX’s triumph is a reminder that the spoils go to the bold. UK investors must ask themselves: do we want to be passive rentiers of the global economy, or active participants in the industries of tomorrow?
The answer will determine not just our portfolios, but our prosperity.
