Could This Start-up Put Elon Musk in the Poor House?

By Wayne Mulligan, on Thursday, August 2, 2018

Elon Musk, the high-profile founder and CEO of Tesla (NASDAQ: TSLA), is worth an estimated $20 billion…

But we just discovered a tiny start-up that could leave him flat broke!

This is bad news for Musk — but it’s fantastic news for investors like you and me.

Let me explain…

The Space Race

Over the past few years, billionaire entrepreneurs like Elon Musk, Jeff Bezos, and Richard Branson have been waging war on one another…

You see, even though their core businesses are very different, their “side” businesses are in direct competition.

More specifically, Musk launched SpaceX, Bezos created Blue Origin, and Branson started Virgin Galactic — each of which is aiming to dominate the future of space travel.

This is a massive opportunity. Bank of America recently forecasted that the space industry will be worth $3 trillion within 30 years.

But these billionaires might be making a classic business blunder…

A New Kid on the Block

While these “big boys” are busy competing with each other, they’re ignoring a tiny new start-up — and this start-up might have what it takes to pull the rug out from under them.

Just like Apple and Microsoft crushed IBM during the PC Revolution in the 1980s, this new start-up is putting itself in position to crush SpaceX, Blue Origin, and Virgin Galactic — and could soon dominate a market worth an estimated $141 billion.

The start-up I’m referring to is called Tesseract.

Simply put, Tesseract builds rockets and propulsion systems for satellites.

Its mission may not sound as “sexy” as that of SpaceX (bringing humans to Mars!)…

But from a business perspective, it makes a lot more sense…

The Second Space Race is Here

Currently, there are more than 1,500 satellites orbiting Earth.

And over the next 8 years, that number is expected to grow to 23,000.

Once they’re in space, these satellites need propulsion systems so they can launch and maneuver. Current systems rely on highly-toxic fuels and inefficient rockets, which makes them far from ideal and extremely expensive.

But Tesseract has developed a propulsion system that’s twice as efficient and half as expensive as current technologies — and on top of that, it doesn’t rely on toxic fuels.

This helps explain why the company has already received Letters of Intent from potential customers that equate to $150 million per year in sales!

But that’s just the beginning…

Today, the satellite propulsion market is worth $9.2 billion. But by 2026, it could be worth more than $141 billion per year.

Meaning, even if Tesseract captures just a small portion of this fast-growing market, it could soon generate billions of dollars in annual revenue.

This is an exciting investment opportunity — especially because you have a chance to get in on the ground floor right now…

Invest in Tesseract

Tesseract is currently raising capital from investors.

Instead of taking the traditional route and raising capital from banks or venture funds, it’s taking advantage of new securities laws to raise the money online from investors like you.

For as little as $100, you can claim a stake in this innovative start-up — and potentially, you could make a bundle.

But just because you can invest in an exciting start-up, doesn’t always mean you should.

Let’s look at the pros and cons of a potential investment.

Worth The Risk?

On the “Pro” side of the ledger, Tesseract has a number of things going for it:

  • It’s targeting a large and fast-growing market…

  • Its management team is literally made up of “rocket scientists”…

  • It’s already built a prototype, and it will start fulfilling orders next year.

As for the “Cons,” Tesseract certainly has a few:

  • It has Letters of Intent, but that doesn’t always translate to real revenues — we’ll have to wait and see how many customers come through…

  • Given how big this opportunity is, Tesseract faces significant competition…

  • Tesseract is capital intensive, so it will need to raise more money in the future. While its leadership team is strong, there’s no “Elon Musk” on board who’s previously raised billions of dollars for opportunities like this.

As with all start-up investments, Tesseract offers investors considerable upside potential — but that upside potential comes with risks.

Ultimately, you’ll need to decide if this investment is right for you.

And, remember: if you do invest, it should be just one of many early-stage investments you make. The key to success in the private markets is diversification.

If you’re interested in learning more (and potentially investing), check out Tesseract’s funding page here »

Happy Investing.

Please note: Crowdability has no relationship with Tesseract, WeFunder or with any of the companies or platforms we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.

Best Regards,
Wayne Mulligan
Wayne Mulligan


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