Virgin Galactic, Galactic Virgin Galactic, First Space Tourism Company discussed on Squawk Pod
All. How much does that change the situation? It's just more than anything. I think. Executives companies all of these places. WanNa know what the rules of the road and don't want to change them every four years. Yeah and that's a refrain that you often hear. I also think that Sorta conceptually we. WanNa think about helping the poorest segments of our society and doing doing right by them but those that can afford things and do let them run with it and and have their own insurance and do it the way they want to do it. Jim Thank you gotta go gotTa go coming up going. Galactic Virgin Galactic shares soar as space tourism heats. Up WE SPEAK WITH VENTURE CAPITALISTS LISA. Rich when you're working with a company that's building the world's first commercial space station people take notice squad. We'll be right back we're back. You're listening to Squawk pod ignition. Liftoff outerspace investing is taking off Virgin Galactic. The First Space Tourism Company to trade on the public market has more than tripled in share price over the last three months a large portion of those gains just in the past two weeks on Thursday after a volatile day of trading on the New York Stock Exchange. The company finally snapped. It's eight day winning streak but that doesn't mean investor appetite for Galactic Technology and travel has cooled off for more on interstellar investing your S- Joker Lisa Richards managing partner at hemisphere ventures in early stage from an investment software robotics and space companies including SPACEX. And you have a different. I guess objective then like a hedge fund or or even private equity or even a mutual. You One owned stories you. That's that's that's what you do you never you may never see a profitable company or maybe it's five or ten years down the road and your portfolio so you don't immediately say wow. This is unfounded with Virgin Galactic. This is something he really liked. That's happening because you were there early. Right as a seed investor. Exactly exactly you have to come in and see what the future holds and what is in that crystal ball and I do live in the future certainly with the early stage companies. I work with. They have this long-term vision just like Virgin Galactic does while they're doing these flights and early opportunities for tourism are there they have this long-term view of hypersonic travel and that's exciting so we'd love to see the early opportunity for Flight Making them some money so they can achieve that goal of hypersonic travel for the rest of us so the the volume in Virgin Galactic. Suddenly you see what's happening and there's one hundred thirty five million shares trade change hands seven times a daily. So you know what's happening. It reaches a sort of a story stock almost almost a frenzy. And you know that it may or may not be based on anything fundamental. Do you sell at that point or do you just write it. I mean that's what you're hoping for when you invest it in your early but when you exit these investments not one. We actually have a commercial space station up in up in space right. I mean that could be. I don't know when that's GONNA be. Would you exit any Virgin Galactic after this run-up well? I think that the runoff is just getting started Because you've got people that want to be a part of the space industry and they can't by SPACEX and they can't buy a blue so what's this is an opportunity to be a part of something and so there's that sense of ownership and I think pride that people have in their investments and they want to be a part of the space industry and Virgin Galactic is giving them that opportunity. It's it's exciting for you and you have a great job because you can invest in things that we have no idea of. They ever make money. They're ever going to play out and spread it across a lot of different companies. I'm sure how much how much are you working with at VC firm that that That you're part of your personal. We're a small firm very early stage and I think you've found us because we we have companies that are getting a lot of traction like axiom. Space I mean when you're working with a company that's building the world's first commercial space station people take notice right. So how much money did you actually put an accident. That's a Texas company. Cornyn is made some comment. And so what you would start with. I guess is an attachment to the space station. It's already up there right there. But it would be commercial in nature exactly so it's a module that's going to be built on the port that Nasa has given axioms face exclusive rights to port. And they will build that module on top of the existing. Is So when the ISS is decommissioned. it will it will disappear. It will be de orbited and we will have axiom station takeover as a commercial destination and the only destination in space. So you know it's Fremaux real estate right but but you make an investment and are comfortable with it would what would what would an intermediate term investment ten years right so most of our early stage? Investments are looking at the seven to ten year time horizon and when you make an early stage investment. You're looking at a company that you believe will be able to reach this magic on hundred million dollars in revenue per year number right. How long will it take for them to achieve hundred million dollars a year in revenue so that it could potentially be acquired or IPO? And so what's interesting about? The space industry is that you can have early. Stage companies that could achieve that earlier than ten years because the scale and the revenues come in very quickly very fast for companies once they achieve There early milestones but so for a company like axiom. Space that selling tickets to the space station for fifty five million dollars for a ten day trip And a four month. Experience of training You know you can achieve revenues early. And that's what we look for is companies that have early revenue opportunities because they need to survive long enough to achieve those revenues and be acquired or go public. You're in the very early rounds and it. It is great. You get something for a dollar and then later around still a VCR or at one hundred dollars or whatever you know. What can you tell us what you're what are you win virgin at thirty seven day? Can you tell us what you see the stock market? I didn't invest in Virgin Galactic familiar with the company and George whiteside has done a fantastic job by the way of building the community of Virgin Galactic Ticket Holders. I think that and there are many other companies that have come to me recently looking to do space tourism. They're very very early so not a you know. We're we're talking. You know the non billionaire class of of entrepreneurs starting companies and saying space. Tourism is going to be a thing. Let's let's look at that opera. So how much do you have in space x right now instead? We don't disclose our numbers and I would just say you know we're early early. Investors Cra Right. I mean we're not in the billionaire class. So we're you know we're investors and we we help other investors like the bigger. Vc's understand the venture environment for space. Because they they have billion dollar funds or five hundred million dollar funds and they have very specific Models they have to follow to make investments. Lisa thank you. That's the podcast today on our rundown Monday ask. Warren ruined good to the Oracle of Omaha. Warren Buffett will be answering audience. Questions you can still send them in with the Hashtag. Ask Warren and Becky quicks questions. As part of an annual squawk box event in Omaha Nebraska. We have a long tradition of speaking with buffet. Following the release of his annual letter to procure hathaway shareholders. Coming out this weekend. The letter is a must read for the investment community sharing the world's most well known investors thoughts on the markets. The company's he buy stock in and so much more he shared with us last year. Who He is thinking about when he starts writing that letter. I've always had the image that I am talking to my sisters. I have two sisters burchard pretty much. Their whole investment. They're smart. They're not active business so they're not reading about it every day but I pretend they've been away for here and I'm reporting to them on their investment. So dear Dourson Birdie at the start and I take that off at the end while I'm talking to them. Squawk box is hosted by Joe Kernan Becky quick and Andrew Ross Sorkin tune in weekday mornings on CNBC at six am eastern to get the smartest takes and analysis from our TV. Show right into your ears. Subscribe to Squawk Pod. We are available for free wherever you listen to podcasts. And sharing is caring. Tell a friend to listen and subscribe to Squawk Pot. We'll meet you back here on Monday. Have a great weekend really injured. No one likes to feel stuck boxed in or held back especially by your cloud. It's a problem but the IBM cloud is different. It's the most open insecure public cloud for business. It can manage all your apps and data anywhere across all your clouds so it can help take on anything from re booking flights. 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