The Next Addition to the Magnificent 7 May Be Private: Why XOVR Uses a VC Lens Across Public and Private Markets

By Joel Shulman Direct answer: XOVR was designed for investors who want to access category-defining companies as early as possible, similar to how venture capital investors think, while understanding that real value creation often requires a long-term horizon. ERShares applies its proprietary Entrepreneur Factor methodology across public equities and select private-company exposure to identify companies that may define the next innovation cycle. Most investors are asking one question: How can I invest in SpaceX before the IPO? But the better question may be: Who has the process to identify companies like SpaceX before they become obvious to the broader market? That is the bigger story behind XOVR. XOVR is not simply a SpaceX trade. It is not a space ETF. It is a crossover ETF strategy built around a VC lens, a long-term horizon, and the belief that the next generation of category-defining companies may be created before they ever become public.

Why the next market leaders may not be public yet

The investment landscape has changed. In the past, many transformational companies went public earlier in their growth cycles. Today, companies can remain private longer while they scale, raise capital, build infrastructure, and capture market share. That means some of the most important value creation may happen before public-market investors ever get access. This is especially relevant in areas such as artificial intelligence, AGI infrastructure, space technology, robotics, defense technology, next-generation communications, and advanced computing. “Future market leadership may emerge from companies across both public and private markets.”

What is the XOVR crossover approach?

XOVR was designed as the first ETF to provide exposure to select private companies alongside public equities in one ETF structure. The strategy is designed for investors who want access to category-defining companies as early as possible, while recognizing that these companies often require a long-term investment horizon. XOVR is not designed for investors looking only for a short-term SpaceX IPO pop. It is built around a longer-term view: the most important companies of the next decade may be identified before they become obvious to the broader market.

How ERShares applies a VC lens

ERShares developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies. The methodology includes 18 attributes that seek to identify companies with long-term category leadership potential. These attributes include innovation, leadership, scalability, disruption, competitive positioning, and the ability to create or dominate large markets. This VC-style framework has historically helped ERShares identify major public-market winners early, including several companies that later became part of the Magnificent 7. The same lens that helped ERShares identify long-term public-market leaders is now being applied through XOVR across both public equities and select private-company exposure.

Why SpaceX fits the framework

SpaceX gets the attention, but the process is the real story. For ERShares, SpaceX is not included because it is trending. It is included because it fits the type of category-defining company the firm’s VC lens was designed to identify. SpaceX may be known primarily as a space company, but its relevance extends beyond rockets. It operates across launch infrastructure, satellite connectivity, communications, data networks, and the broader technology ecosystem. In a world increasingly shaped by AI, AGI, automation, and global connectivity, infrastructure companies may become even more important. That is why SpaceX fits into the broader XOVR thesis.

Why AI and AGI make crossover investing more important

Artificial intelligence is no longer just a technology theme. It is becoming a broad economic platform that may reshape software, semiconductors, data centers, robotics, financial services, healthcare, defense, energy infrastructure, and communications. As investors look ahead to more advanced AI systems and the possibility of AGI, one question becomes increasingly important: Where will the next generation of category-defining companies be created? Some will be public. Others may remain private for years. That is why a crossover approach may matter. Investors focused only on public equities may miss part of the value creation happening inside private companies before they reach the public markets.

Why long-term discipline matters

AI, AGI, private markets, and SpaceX can all create excitement. But excitement alone is not an investment process. Not every company associated with a major trend becomes a long-term winner. That is why ERShares focuses on a disciplined framework rather than short-term hype. The ERShares approach is designed to identify companies with the characteristics of long-term category leadership. XOVR was built for investors who want to think in years, not days.

The takeaway

The question is not just how to buy SpaceX. The deeper question is who has the process to find the next SpaceX. XOVR was designed for a market where the next Magnificent 7 may not be public yet. It combines public equities with select private-company exposure and applies ERShares’ VC lens to identify companies that may define the next innovation cycle. SpaceX gets the attention. But the process is the real story.

FAQ

Is XOVR a SpaceX ETF?

XOVR is not a space ETF. SpaceX is an important holding, but the fund is a broader crossover ETF strategy that combines public equities with select private-company exposure.

What does it mean to invest with a VC lens?

Investing with a VC lens means looking for companies with the potential to become category-defining leaders before they become obvious to the broader market. ERShares applies this approach through its proprietary Entrepreneur Factor methodology.

Why does XOVR include private-company exposure?

Many innovative companies are staying private longer. XOVR was designed to provide exposure to select private companies alongside public equities in one ETF structure.

Is XOVR a short-term SpaceX IPO trade?

No. XOVR is designed as a long-term strategy for investors who want exposure to category-defining companies across public and private markets.

Why does AI make private-market access more relevant?

AI may accelerate innovation across both public and private companies. Some of the companies shaping the AI and AGI era may remain private for years before entering public markets.

Disclosures: Important information: Investing involves risk, including possible loss of principal. Investments in private companies involve additional risks, including limited liquidity, valuation uncertainty, and reliance on external structures. References to specific companies are for illustrative purposes only and do not represent all investments. There is no guarantee that any investment strategy will be successful. Holdings are subject to change. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.