Seraphim Global Space Index – 29% Year on Year Growth – January 2018 To December 2018

Written by: Seraphim Capital

[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]

The latest Seraphim Space index demonstrates the growing appetite for space tech by VC investors globally. Total investment grew by 29% during 2018 expanding from $2.5bn to $3.25bn. Whilst SpaceX generates most of the press coverage it accounted for just 15% of total investment in 2018 ($487m) versus 18% in 2017 ($450m). US companies received the majority of funding accounting for 64% of 2018 investment, a 1% increase on 2017. European companies improved their global share of investment from 13% to 18% over the period.

The Index reported that 182 companies were venture financed during 2018 versus 131 in 2017, the growth was fuelled by investment into earlier stage investments verses the top 5 companies funded which accounted for $1bn in both 2018 and 2017. The index, which identifies average investment round sizes for each sub-sector, revealed that US companies continue to access materially larger rounds increasingly across Seed, Series A and Series B. The only sub-sector to buck this trend was Build (space hardware, software and engineering, materials, energy and robotics).

Overall investment in the sector is still driven by Launch which accounted for 39% of total investment ($1.3bn). The number of companies funded was broadly flat 19 versus 17 in 2017 with investment into growth rounds (B series and later) accounting for $1.1bn versus $640m the previous year displaying a maturing of the sector. In 2018 small sat dedicated launchers such as Rocket Lab ($140m) and Vector ($70m) raised substantial rounds and in the case of the former commenced commercial operations. Investment outside of US launch businesses gathered momentum with Landspace ($43m) and OneSpace ($44m) in China.

Activity related to Build (eg sensors, electronics, battery) was flat on the year $236m vs $262m across 28 companies respectively. Growth investment (B series and later) was flat at $154m versus $141m. However, European investment escalated to 36% of total versus just 4% previously. Key investments in the year included Reaction Engines ($37m) and Oxford Space Systems ($8m) in the UK, as well as Apollo Fusion ($10m) in the US.

Investment in satellite constellations and airborne platforms for collecting and disseminating Data rose by 27% to $845m across 51 companies. Investment in growth companies (B series and later) soared by 52% to $444m in this maturing subsector including companies such as Cloud Constellation ($100m). The uplift was largely driven by US investment up from 44% to 65% of the subsector. Notable transactions outside the US included the likes of Iceye ($34m, Finland) and Axelspace ($23m, Japan).

Downlink represents the companies communicating data from these platforms back to the ground stations. Despite being an important element of the supply chain, overall investment was down to $110m from $127m a year earlier. Whereas 2017 saw a large investment into antenna company Kymeta ($74m series E), 2018 investment was focused more on earlier stage with only $34m invested in growth stage businesses. European companies in this sector accounted for 47% of total investment, including companies such as Goonhilly Earth Stations ($32m).  We see a surge of interest in quantum cryptography technologies that will drive investment in this subsector going forwards.

Investors piled into Analysis companies in 2017, backing companies to manipulate large unstructured datasets supporting emerging leaders such as Orbital Insights ($50m) and Mapbox ($164m) whereas in 2018 ‘mega-rounds’ were not a feature of this subsector. Consequently, investment fell from $410m to $275m. Within this only $165m was invested in growth during 2018 versus $384m a year earlier. Notable investments included Taranis ($20m) and Ursa Space ($6m).

[/vc_column_text][/vc_column][/vc_row]

Important Information

The information contained on this website is intended only for investors who are resident in the United Kingdom who are not US Persons (as defined in the US Securities Act of 1933, as amended) (“US Persons”) and may not be accessed by persons who are located in the United States, Canada, Australia, Japan, any member state of the EEA or the Republic of South Africa. Viewing the materials you are seeking to access may not be lawful in jurisdictions other than the United Kingdom.

The information on this website is for information purposes only and does not constitute or form a part of any offer or invitation to sell or issue, or the solicitation of any offer to purchase or subscribe for, securities. The information on this website is general in nature and does not in any way constitute investment, tax, legal or other advice. If you are unsure as to whether the investments described on this site are suitable for you, we strongly recommend that you seek professional advice from a financial adviser before making any investment or financial decisions.

No securities of Seraphim Space Investment Trust plc (the “Company”) have been or will be registered under the US Securities Act of 1933, as amended (the “Securities Act”) or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, in or into the United States, or to or for the account or benefit of any US Person except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. In addition, the Company has not been, and will not be, registered under the United States Investment Company Act of 1940, as amended. There will be no public offer of securities in the United States.

If you are not permitted to view this website or are in any doubt as to whether you are permitted to view this website, please exit this website immediately by clicking on the “Disagree” button below. The contents of this website must not be released or otherwise forwarded, distributed or sent, directly or indirectly, in whole or in part, outside the United Kingdom and in particular in or into the United States, Australia, Canada, the Republic of South Africa, any member state of the EEA, Japan or any other jurisdiction where the distribution of such materials would or may breach any applicable law or regulation or would require any registration or licensing within such jurisdiction. Persons receiving any such materials (including, without limitation, custodians, nominees and trustees) should observe these restrictions and must not, directly or indirectly, in whole or in part, forward, distribute or send them in, into or from any jurisdiction outside the United Kingdom. None of the Company, its directors, Seraphim Space (Manager) LLP (“Seraphim”) or any of their respective advisers accept any responsibility for any violation by any person of any of these restrictions.

In addition, the securities referred to on this website may only be offered in member states of the European Economic Area (each a “Relevant State”) to the extent that such securities (i) are permitted to be marketed into the jurisdiction of the Relevant State pursuant to the Alternative Investment Fund Managers Directive 2011/61/EU; or (ii) can otherwise be lawfully offered or sold (including on the basis of an unsolicited request from a professional investor (as that term is used in the Alternative Investment Fund Managers Directive 2011/61/EU)).

The information on this website is general in nature and may be subject to amendment and updating without notice. None of the Company, its directors, Seraphim or any other person guarantees the accuracy or completeness of any information on this website or accepts any responsibility or duty to update any information, document or announcement contained on this website, and each such person disclaims all representations and warranties, whether express or implied, to the greatest extent permitted by applicable law and regulation. By continuing to use this website, you agree to the exclusion by such persons, to the greatest extent permitted by applicable law and regulation, of any and all liability for any direct, indirect, punitive, consequential, incidental, special or other damages, including, without limitation, loss of profits, revenue or data arising out of or relating to the provision of and your use of this website and its content.

None of the Company, its directors, Seraphim or any other person accepts any responsibility in respect of any information contained on any other website which may be linked to or from this website.

This website is governed by the laws of England.

By clicking the “I accept” button below, you confirm, represent and warrant to the Company, its directors and Seraphim that you are located in the United Kingdom, you are not a US Person and you are not a resident of, or physically present in, the United States, Canada, Australia, Japan, any member of the state of the EEA or the Republic of South Africa or any other territory where to do so would breach applicable laws, rules or regulations; you are not investing or otherwise acting for the account or benefit of a US Person or a resident of the United States or Canada, Australia, Japan, any member of the state of the EEA or the Republic of South Africa or any other territory where to do so would breach applicable laws, rules or regulations; you are accessing this website for information purposes only; you have read, understood and agree to the disclaimer above; and you agree that you will not transmit or otherwise send any of the information on this website to persons outside the United Kingdom, including to any persons in the United States or to publications with a general circulation in the United States.