SpaceTech Sector Newsletter May 2023

Seraphim Space Investment Trust PLC

05 June 2023

 

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

SpaceTech Sector Newsletter - May 2023

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

SSIT News

Seraphim Space Investment Trust plc (LSE: SSIT), announced its third-quarter results for the period ended 31 March 2023. [link]

Q3 Highlights

·    On 31 March 2023, the Company had investments in 29 SpaceTech companies.

·    The portfolio remains well-capitalised, and the Company had cash reserves of £39m (18% of NAV) at 31 March 2023.

·    Underlying portfolio commercial progress is strong but remains lumpy, with the top 10 companies (70% of NAV) growing revenues by 34% in the six months to 31 March 2023 on a fair value-weighted average basis.

·  Overall portfolio valuation slightly decreased by £0.5m to £180.8m during the quarter, driven by an unrealised fair value reduction of £1.3m, partially offset by investment of £0.9m.

·    Portfolio fair value slightly down to 96.5% of the overall cost.

·    One follow-on transaction of £0.9m was completed during the period.

·    Net assets of £220m and market capitalisation of £90m as at 31 March 2023

SSIT Coverage Highlights

·    Mark Boggett, CEO of Seraphim Space, appeared on Edison TV Executive Interview series to discuss the current state of the SpaceTech investor landscape and huge opportunities in the sector right now. [link]

·    Mark Boggett featured in Barron's article 'Space could be a $Trillion business and here are the stocks to play it'. [link].Within the piece, Mark discusses the structure of Seraphim Space LLP - space-focused venture-capital firm with a portfolio of 105 investments, including highlights in the SSIT portfolio such as AST SpaceMobile which works to provide ultra-powerful network 5G speeds everywhere on the planet.

SSIT Portfolio Update

ICEYE Announces Deal with UAE 

ICEYE announced a deal with Bayanat, a listed company and leading provider of AI-powered geospatial solutions, and Yahsat, the UAE's flagship satellite solutions provider. They aim to build an ambitious program to broaden the commercial opportunities across the UAE Space Ecosystem. The programme aims to develop a constellation of five LEO SAR (low Earth orbiting synthetic aperture radar) satellites with the first satellite scheduled for launch in Q1 2024. This constellation aims to deliver a consistent data flow to support end-to-end solutions for SAR applications. This collaboration will greatly enhance ICEYE's commercial offerings by providing timely and precise geospatial insights to various industries, thereby adding significant value. [link]

Satellite Vu Secures £13m Funding Boost

London-based Satellite Vu secured a £13m funding boost at a premium to its previous valuation. Satellite Vu is a climate technology specialist providing insights into energy efficiency and carbon footprints, using thermal imaging to detect heat loss from buildings anywhere on Earth. Molten Ventures led the Series-A2 round. SSIT was thrilled to continue to support Satellite Vu alongside existing investors such as Lockheed-Martin and Earth Sciences Foundation. Satellite Vu plans to launch its satellites aboard SpaceX, Falcon 9, in June 2023. This round of funding will be used to accelerate the provision of its services to clients. [link]

D-Orbit in Italian Consortium Winning €256m In-orbit Servicing Contract

Alongside Thales Alenia Space and others, D-Orbit is managing activities related to the target satellite platform which is based on its successful ION orbital transfer vehicle. D-Orbit will also oversee the development of a refuelling system that could transfer fluid from the servicer to the target satellite. [link]

Spire Global Announces Strong First Quarter 2023 Results

Spire has started 2023 with record results, continuing to make strong progress towards profitability and positive free cash flow in the next 10 to 16 months. Results exceeded its expectations, surpassing $100m of annual recurring revenue and reaching $104.8m, an increase of 28%. Spire ended the quarter with 781 customers under contract, a net increase of 48 customers from 31 December 2022. [link]

QuadSAT Completes Large Antenna Testing Mission

QuadSAT worked with Telespazio to perform the radiation pattern measurements of a large, 17-metre antenna. The radiation pattern measurements enabled QuadSAT to provide Telespazio with important data about the performance of the antenna, as well as extracting information on the shape and size of the main beam and the level and position of sidelobes. This has enabled the operator to ensure the antenna is operating at optimum efficiency. Quality assurance and reliability are critically important for satellite communication service providers. [link]

SpaceTech Sector News

Seraphim Space Accelerator (EU) and Generation Space Accelerator (US) Launch Cohort #11

The space accelerator programme is a three-month programme operated by Seraphim Space that supports fledgling SpaceTech companies access capital. The latest cohort features nine startups looking to develop key relationships with some of the world's leading corporates and agencies operating in the space sector as they raise capital to commercialise their technology. Since 2018 the programme has helped 81 startups raise over $270m from 90+ venture capitalists, demonstrating the growth and innovation within the SpaceTech sector. The accelerator's 11th cohort is the accelerator programme's most geo-diverse yet, including the first startup dedicated to the African space economy to join the programme. [link]

UK Leads Europe in Race for Space Investment, PWC Report Finds

A PwC-UK Space Agency report revealed the UK is the most attractive destination for private investment in space after the US. [link]

Key findings were: 

·      Nine of the largest UK venture capital firms have invested in space since 2015.

·      Key areas of investment in the UK are Earth observation, manufacturing and satellite connectivity.

·      Growth is expected to increase by 11% every year to 2030 across the global space ecosystem.

·      95% of space investments were in revenue-generating companies in 2022 compared to 56% in 2015, demonstrating the growing maturity and demand of the sector.

Space M&A

·    Viasat received FCC approval for its acquisition of Inmarsat. The acquisition will allow the company to diversify satellite services revenue with a bigger emphasis on mobility. The operator recently launched its long-awaited ViaSat-3 satellite, the first of three high-capacity Ka-band satellites that will give the operator global coverage. [link]

·    Advent International acquires Maxar Technologies. [link]

Listed Space Results

The table below shows the reported revenue growth for listed space companies, including those that are part of the SSIT portfolio. Overall, there has been an average 25% revenue growth for the listed companies which bodes well for the continued growth and developed of the industry.

Revenue growth listed space companies ($m)

·    Terran Orbital's ($LLAP)       115

·    Planet Labs ($PL)                    46

·    Satellogic ($SATL)                  42

·    Redwire                                   38

·    Spire Global                             34

·    BlackSky ($BKSY)                  32

·    Kratos ($KTOS)                       23

·    SES                                          10

·    Rocket Lab's ($RKLB)              6

·    Virgin Galactic ($SPCE)            0

·    Astra ($ASTR)                           0

·    Airbus Defence & Space         -6

·    Echostar                                   -12      

Average Growth                                  25

Fun Facts

·    New record set for the most people to be simultaneously in orbit - 17 people from five different countries on 30 May. [link]

·    The second ever commercial astronaut mission to the International Space Station took the first Arab woman into space. Two Saudi Arabian astronauts marked a historic first for the Kingdom and highlighted its aspirations to become a global space power. [link]

·      SpaceX's Starlink internet service has surpassed 4,000 satellites in orbit. [link].

·       Europe announced its own broadband constellation to address the challenges of Starlink. A broad group of EU competitors formed an alliance to take on the mighty SpaceX. [link]

Media & Podcasts

Webinar

·    Why Space, Why UK, Why Now - Featuring Paul Bate, CEO UK Space Agency
With the UK attracting more investment in space projects than any other country, excluding the US and China, the UK space industry is booming. This live webinar featured the CEO of the UK Space Agency, Paul Bate, and Seraphim Space CEO, Mark Boggett. They discussed the current landscape of the UK space industry and what is on the horizon. [link]

Podcasts: Series 2, Episodes 1 & 2 of the 'Generation Space Podcast- 'Portfolio Spotlight'

·    Episode 1: SSIT portfolio company Astroscale with CEO Nobu Okada 

Nobu is the Founder and CEO of Astroscale, the first and the leading private company with a vision for the safe and sustainable development of space for the benefit of future generations and is solely dedicated to on-orbit servicing across all orbits. Listen to discover what the future holds for the company and why it's so important to have a solution to space junk. [link]

·    Episode 2: SSIT portfolio company Voyager with CEO Dylan Taylor 

Dylan is the Chairman and CEO of Voyager Space and an active pioneer in space exploration - he is a CEO, investor, and commercial astronaut. Find out all about Dylan's journey into the space industry and what his mission is for Voyager. Voyager Space is a space exploration company dedicated to building a better future for humanity in space and on Earth. Voyager is powering the commercial space revolution. Voyager delivers space station infrastructure and services and technology solutions to commercial customers and civil and national security agencies. [link]

Seraphim Insights

The following insight pieces from the Seraphim team discusses the ongoing development and growth of investment in the Space industry:

·    Rob Desborough, CEO of the Seraphim Space Accelerator, featured on Singapore's MoneyFM radio Bigger Picture: Why Investing in Space is Key to ESG. [link]

·    Seraphim Investment VP Dr Maureen Haverty joined Steve Sponseller on the Tech Leader Talk Podcast 'Tips for Funding Your Space Tech Company'. [link]

·    Seraphim Space CEO Mark Boggett spoke with Morgan Brennan on her CNBC podcast Manifest Space 'The Capital Comeback'. [link]

·    Dr Maureen Haverty spoke for Funds Europe 'Investing in Space: Europe's growing space sector' discussing the Seraphim Space Index Q1 2023 and what this means for investors. [link]

Conferences

Find out where to meet and hear from the Seraphim Space team by following its social media LinkedIn /Twitter

Sign up to receive the monthly Seraphim 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" 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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