SpaceTech Sector Newsletter July 2023

Seraphim Space Investment Trust PLC

08 August 2023

 

SERAPHIM SPACE INVESTMENT TRUST PLC
(the "Company" or "SSIT")

SpaceTech Sector Newsletter - July 2023

Seraphim Space Investment Trust plc (LSE: SSIT), the world's first listed SpaceTech investment company, publishes its monthly RNS Reach newsletter to provide updates, based on publicly available information, on the Company's portfolio investments, its Manager (Seraphim Space Manager LLP (the "Manager" or "Seraphim Space")) and the wider SpaceTech market. The following newsletter covers July 2023. 

SSIT Portfolio Update

Hawkeye 360 raises $58m Series-D funding round led by BlackRock and signs a deal with Australia and other nations of the Pacific Islands Forum Fisheries Agency

Hawkeye 360, the largest global commercial operator of remote-sensing satellites for RF (radio frequency) analysis, announced a raise of $58m in a Series D-1 round led by funds and accounts managed by BlackRock. Hawkeye 360 uses RF data collected by a fleet of satellites to geolocate electronic emissions and draw insights. The funding will be used to extend their leadership in global security and sustainability applications. [link]

HawkEye 360 also signed a deal with Australia and other nations of the Pacific Islands Forum Fisheries Agency to help combat illegal, unreported and unregulated fishing in the South Pacific. [link]

Constellr raises €17m in Seed funding

German thermal satellite data startup Constellr announced a raise of €17m in seed funding. Constellr plans to accelerate the deployment of its shoebox-size thermal imagery satellites to meet the growing demand for smart farming services that assess vegetation, soil health and other food security issues. [link]

Spire Global teams up with OroraTech to launch a fleet of wildfire-monitoring satellites and its Space Services division chosen for ESA satellite contract

The past few wildfire seasons in the United States and Canada have been some of the most dangerous on record. Spire Global and OroraTech have announced that they will put a constellation of eight global temperature and wildfire-monitoring satellites into orbit by mid-2024. The satellites will not just monitor active wildfires; they will also identify areas at risk of wildfires areas that OroraTech says are increasing due to climate change. Insights collected will benefit not only first responders but also the insurance and energy sectors. [link]

Spire Global's Space Services business also announced it had signed a €16m with the European Space Agency for the EURIALO Project. Spire Global will build an initial LEO (low earth orbit) demonstrator satellite for the agency with instruments capable of collecting RF signals from aircraft to triangulate their exact position over the Earth. [link]

SpaceTech Sector News

Seraphim Space releases the Seraphim Space Index for Q2 2023

Seraphim Space released its quarterly review on the global private investment in the SpaceTech ecosystem for the year to Q2 2023, showing an investment of $1.2bn in private capital into the space industry in the quarter. [link]

Investment into SpaceTech is showing signs of recovery after the decline in H2 2022. Activity remained strong, particularly at the early stages, with the number of Seed deals growing almost 55% increase year on year. Considering Q2 2023 in isolation, while the number of deals was down by around 30%, capital deployed was largely aligned with Q1 2023. This is indicative of a cautious return to growth by investors, with an uptick in Series C stage deals.

While Europe led the investment rebound at the beginning of this year, Q2 saw a return to US deals leading investment activity. As well as deal volume, the US continued to lead in magnitude, with deal sizes around twice the size of those in Europe. Although the US has 'reclaimed' the top spot, momentum built around European investment has not diminished. European deal numbers grew by 60% over the prior TTM (trailing 12 months) period and Asia grew by 79%. SpaceTech deals were increasingly represented globally, with Asia making a mark.

While there was no return of frequent megarounds, the largest deal closed in the quarter had a healthy increase to $200m (Astranis).

Space Foundation releases its Q2 report on the state of the global space economy

The Space Foundation reported that the global space economy grew 8%, reaching $546bn despite turbulent global markets. Commercial growth climbed nearly 8%, reaching $427.6bn driven by international defence spending which rose to 45% of government space budgets. The Space Foundation believes the space industry is poised to bring in upwards of $800bn by 2028, in part because of the surge in launch activity in 2023 compared to the prior year. [link]

UK's Department for Science, Innovation and Technology (DSIT) publishes its 'The Case for Space' report

The report, published by Know.Space, sets out how global satellite services unpin at least 18% of UK GDP. Making the case for how the space sector delivers substantial and varied benefits across government, society and economy, supporting key markets and services which citizens, firms and the government rely on every day, playing a vital yet often hidden role. The authors state that the space sector is undergoing a rapid, transformative change, creating a new generation of opportunities, forecasted to be worth more than $1tn within two decades. [link]

SpaceX mid range forecasts revealed

SpaceX forecasts 2028 revenue to hit $8bn and operating profits to hit $3bn, according to a The Information report. [link]

NASA stimulates commercial tech development

NASA awarded 11 companies a combined $150m to support a next-generation lunar base camp. This included $35m to Blue Origin to continue developing its Blue Alchemist solution, which uses electrolysis to manufacture solar cells from lunar soil. The process also produces oxygen as a by-product. Redwire was allocated $13m to prototype its lunar processing tech, which solidifies lunar soil to create a foundation for lunar habitats, roads or landing pads. [link]

Media & Podcasts

Video webinars

·           The Seraphim 100: Discover the Investment Landscape for Space 2016-2023: Seraphim Space hosted a video interview on the changing SpaceTech investment landscape. [link]

·           Space Data for Insurance. How it's changed the InsurTech game: The modern insurance industry is changing rapidly, embracing capability from space. Seraphim Space spoke to Amini, a space startup company currently leading the development of a purpose-built super-powered data infrastructure for Africa. [link]

·           The Edison Group Vantage Interview: Mark Boggett, CEO at Seraphim Space, discussed investing in innovative SpaceTech companies. [link]

Podcasts: Episodes 4 and 5 of the Generation Space Podcast 'Portfolio Spotlight'

·           S2 Episode 4 - SSIT portfolio company HawkEye 360 with CEO John Serafini: The series of interviews with the top 10 portfolio companies of SSIT continues with John Searafini, CEO of HawkEye 360. HawkEye operates a first-of-its-kind commercial satellite constellation to identify, process and geolocate a broad set of RF signals. Backed this month by BlackRock, find out how this company is supporting the fight against illegal fishing and helping address the growing geopolitical tensions. [link]

·           S2 Episode 5 - SSIT portfolio company PlanetWatchers with CEO Dominic Edmunds: Dominic Edmunds, CEO of PlanetWatchers (another SSIT top 10 portfolio company) talks about supporting innovation in the world of crop insurance. The podcast discusses how PlanetWatchers turns months of manual assessment into minutes of automated analysis to support insurance policies and validate claims data. [link]

Conferences

·           DSEI Conference: 12 September 2023 in London, UK, with Mark Boggett, CEO of Seraphim Sapce, speaking.

·           SuperReturn Asia (Asian Private Equity Conference): On 19 September 2023 in Singapore, with Mark Boggett, Seraphim Space CEO, speaking.

Find out where to meet and hear from Seraphim Space's team by following its social media, LinkedIn / Twitter.

Sign up to receive SSIT's monthly newsletter direct to your inbox. [link]

Neither the Company's website nor the content of any website accessible from hyperlinks in it or in this newsletter (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of, this newsletter.

- Ends -

Media Enquiries

Seraphim Space Manager LLP (via SEC Newgate)
Mark Boggett, CEO / James Bruegger, CIO / Rob Desborough
SEC Newgate (Communications advisers)	[e-mail]
Emma Kane / Clotilde Gros / George Esmond	[phone]
Deutsche Bank
Mark Hankinson / Gavin Deane / Neil Coleman	[phone]
J.P. Morgan Cazenove
William Simmonds / Jérémie Birnbaum / Rupert Budge	[phone]
Ocorian Administration (UK) Limited	[e-mail]
Lorna Zimny	[phone]

Notes to Editors

About Seraphim Space Investment Trust plc

Seraphim Space Investment Trust plc (the "Company") is the world's first listed fund focused on SpaceTech. The Company seeks exposure predominantly to early and growth stage private financed SpaceTech businesses that have the potential to dominate globally and that are sector leaders with first mover advantages in areas such as climate, communications, mobility and cyber security.

The Company is listed on the Premium Segment of the London Stock Exchange.

Further information is available at: https://investors.seraphim.vc.

About Seraphim Space Manager LLP

Seraphim Space Manager LLP ("Seraphim Space" or the "Manager") is based in the UK and manages Seraphim Space Investment Trust plc.

Further information is available at www.seraphim.vc.

About Seraphim Space Camp Accelerator Ltd

Seraphim Space Camp Accelerator Ltd, an affiliate of Seraphim Space Manager LLP based in the UK, established the Seraphim Space Accelerator in 2018 and has developed it to become the world-leading VC-led accelerator with a focus on SpaceTech. The accelerator programme brings in-depth industry expertise to get Seed and Pre-Series A SpaceTech companies 'investment ready' while facilitating relationships with some of the world's leading Space corporates and agencies.

Further information is available at www.seraphim.vc.

About Generation Space LLC

Generation Space LLC is the US subsidiary of Seraphim Space Manager LLP and is responsible for its US activities. Generation Space LLC is an affiliate of Seraphim Space Camp Accelerator Ltd and is responsible for delivery of the US Generation Space Accelerator.

Further information is available at www.generation.space.

 

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