Elon Musk is sticking with SpaceX board member Steve Jurvetson, shows new SEC filing

Several weeks ago, the WSJ reported that SpaceX, Elon Musk’s rocket company, was set to raise $500 million from earlier stockholders and the Scottish money management firm Baillie Gifford& Co. in a bid to help get its internet service business off the ground.

The Hawthorne, Calif. corporation still hasn’t announced the round, but it nevertheless built things official today, filing with the SEC more details about the fundraise. Though the filing doesn’t demonstrate Baillie Gifford’s participation, it does show that the company has secured from 8 investors at least $273.2 million toward a planned $500 million round.

It likewise , notably, listings the involvement of longtime investor Steve Jurvetson, who has been on the board of both SpaceX and Musk’s car company, Tesla Motors, for 10 and 13 years, respectively. Why it’s worth mentioning: After Jurvetson left DFJ, the venture capital firm he co-founded, in 2017 amid questions about his personal conduct, there was uncertainty around whether he would keep those administrator posts. Indeed, at the time, a Tesla spokesperson told the outlet Recode that Steve Jurvetson” is on a leave of absence from the SpaceX and Tesla boards pending resolution of these allegations .”

DFJ’s investigation into those allegations resulted the firm to subsequently apologize for an event hosted at the Half Moon Bay home of Jurvetson, which reportedly featured sex and drug use. Musk, however, who attended the event, suggested that it was far more sedate, telling WIRED at the time,” If the committee is’ sexuality parties’ in Silicon Valley, I haven’t visualized or heard of one . . If you want wild parties, you’re in the wrong place. Obviously. That DFJ party was birthing and corporate, with zero sexuality or nudity anywhere.”

Either way, Jurvetson wasted little time in forming a new venture firm, Future Ventures, which has been up and running for 11 months and seems to fund startups in commercial space exploration, deep discover, quantum computing, robotics, AI, blockchain, sustainable transportation, synthetic biology and clean meat.

Now we know that he remains involved in SpaceX, too, even while sources propose he continues to, 13 months later, on leave.( Neither Jurvetson nor SpaceX has responded to requests for comment for this story .)

It’s not so surprising, given that Musk and Jurvetson have enjoyed a long relationship. In fact, because SpaceX remains privately run and Musk holds super-voting shares, he has extra power in corporate decison-making, as Recode noted in a more recent report.

Meanwhile, publicly traded Tesla has also stuck by Jurvetson. Despite changes to the board’s composition that were brought about as part of its settlement with the SEC — late last year, it added new members of the security council Larry Ellison and Kathleen Thompson-Wilson, and Robyn Denholm replaced Musk as chairman — Jurvetson remains a director.

Assuming SpaceX closes its newest round of funding, it will have raised $2.5 billion in equity fund wholly, according to Dow Jones VentureSource.

Other outside administrators listed on the new filing include Luke Nosek of Founders Fund; Donald Harrison, a longtime Googler who is currently the company’s chairman of global partnerships and corporate growth; Kimbal Musk, brother to Elon; and Antonio Gracias of Valor Equity Partners.

Kimbal Musk and Gracias, like Jurvetson, also sit on the board of Tesla, much to the humiliation of one prominent shareholder advisory firm that has urged the company to boot them out.

Jeffrey Sonnenfeld, who the hell Senior Associate Dean for Executive Programs at Yale University’s School of Management, also thinks they should go, calling them “cronies” and characterizing Musk’s refusal to proportion ways with Jurvetson including with regard to “irresponsible.”

” It’s some of the bro culture patriotism that Musk defends ,” says Sonnenfeld of the fact that Jurvetson remains a director with both companies while remaining on temporary leave.

Not comprising any punches, Sonnenfeld further blameds for the SEC for not doing even more about Tesla’s board when it tangled with Musk last year.” The SEC didn’t even think of this oddity as a governance concern. The fact that[ both companies] have this director on there, who, even if he is completely innocent, has been unable to serve the interests of the company now for 13 months, is just one of the many behaviors that Musk so artfully outmaneuvered relevant agencies .”

Directors” have to represent all proprietors of a company ,” adds Sonnenfeld.” If Jurvetson and Musk have some personal bond, then Musk could hire him as an advisor or consultant. But he shouldn’t be in an organization role. These aren’t city council sessions .”

According to the WSJ’s earlier report, SpaceX’s new round will be used to finance a new satellite internet service, one whose early intend suggest it could be powered by more than 4,000 spacecrafts orbiting the earth at low altitudes.

Update: Note, an earlier version of this story noted that Jurvetson remains involved in SpaceX but did not report on his continued status on temporary leave .</ em>

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