It may come off as a bit of a surprise to learn that Donald Trump’s son, Donald Trump Jr., is working as a partner at one of the hottest venture capital firms out there. Indeed, 1789 Capital has been around for over three years now, but, more recently, the firm has garnered serious traction, thanks in part to the rise of “patriotic capitalism.” It sounds good on paper, and it’s proven wildly profitable for investors looking to grow wealth while betting big on America.
What’s even more interesting is the kinds of investments that the firm has been making. They’ve been betting on some of the most exciting big-league private firms that the retail crowd doesn’t have access to yet. With a big IPO spree ahead of us, headed by Elon Musk’s SpaceX, it certainly won’t be all too long before everyday investors can get a piece of the companies that fit the bill of the “patriotic capitalism” theme.
The rise of patriotic capitalism is tough to ignore
Undoubtedly, when you think of patriotic capitalism, you simply cannot ignore artificial intelligence (AI) and the private defense firms, including the likes of Anduril. And with 1789 Capital making some very bold, brilliant bets that ride the “America first” policy into the private realm of AI, it’s difficult not to take notice. The assets have reportedly risen from $200 million to a jaw-dropping $3.5 billion. The firm is shooting for $10 billion in assets under management in the coming years, a goal that might be hit far sooner than expected, given the magnitude of heat surrounding recent IPOs.
Is it really that profitable to invest like a patriot? I don’t know, but the rise in 1789 Capital seems to be shining a bright light on the investment theme. Either way, placing bold bets on private firms that are leveraging profoundly innovative technologies is not without its fair share of risks. As the saying goes, high risk, high reward.
But when it comes to the many private firms that 1789 Capital invests in, the names certainly do stand out in a class above most other private investments. Most notably, they’re quite large, established, with sound business models, and, most importantly, fairly wide technological moats. Arguably, they’re high-quality public plays that are still private, but won’t be for all too long.
1789 Capital’s rise might just be the start
Any way you look at it, 1789 Capital’s rise has been meteoric, to say the least. Smart bets on Cerebras (NASDAQ:CBRS), which hit the ground running during its IPO day earlier this month, have been nothing short of applause-worthy. With the stage set for one of the biggest IPO waves the market has ever seen, questions linger as to how much further the investments can soar in value.
Undoubtedly, SpaceX is nearing its IPO launch, and it looks like it’s going to be one of the biggest needle-movers in recent memory. Of course, demand could have the potential to be off the charts, especially as Elon Musk continues to make moves that excite the crowd and his fans.
Orbital data centers and satellite connectivity have been quite the hot topic, and if the world winds up chasing America’s lead as it looks to dominate, perhaps there is no more exciting play out there for investors looking to get a ticket to the space race and the AI boom, all in one investment.
The bottom line
Looking ahead, I’d look for more private American innovators, from SpaceX and beyond, to keep posting the big wins. Time will tell how high asset values go from here, as 1789 Capital continues to scale at a pace that’s nothing short of blistering.
In my view, there’s never been a point in history where the economic moats and market caps were this big for private companies. And once more, big IPOs land, my guess is that firms with big bets on the biggest and boldest private innovators will keep on flexing their muscles.
As for retail investors, we’ll just have to wait our turn as the next generation of AI and defense innovators finally go public. The big question on the minds of the retail crowd is whether day one is the day to punch a ticket to names like SpaceX.
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