- Around $6.4bn was invested into SpaceTech in the first half of 2021 – equivalent to 85 per cent of investment for the whole of 2020
- The number of space deals this year is on track to eclipse the record set in 2018
- Global private investment in Q2 2021 was at a record $3.7bn, up from $2.7bn invested in Q1 2021
- The space industrial revolution is demonstrably in full swing as 573 satellites were launched during the quarter
- Seraphim’s oversubscribed Initial Public Offering provides investors with a new way to get involved in the SpaceTech market which is set for substantial growth
LONDON, August 11, 2021 (Seraphim Capital PR) — The SpaceTech sector experienced another record-breaking quarter of venture financing in Q2 2021, both in terms of amounts invested and deals done, according to the latest figures from the Seraphim SpaceTech Venture Capital Index (“the Index”) published today.
During the quarter $3.7bn of private investment was made into the sector, up from $2.7bn invested in Q1 2021. The record breaking $6.4bn invested in the first half of the year (H1 2021) represents nearly 85 per cent of funding recorded for the whole of 2020. Further, investment levels over the trailing 12 months approached the $12bn threshold for the first time. Seraphim expect this cadence to be maintained going forwards as the COVID-19 related downturn from H1 2020 is now firmly in the rear-view mirror.
A total of 172 transactions were completed in H1 2021, compared to 221 for the whole of 2020, and the sector now looks like it could eclipse the recorded highest number of deals in a calendar year, being 241, set in 2018. Q2 2021 also continued in a similar vein to the prior quarter in terms of the growing number of ‘mega deal’ financing rounds of more than $50m, with 14 reported in the quarter.
This year has also seen a significant marked shift in public market investors’ appetite for SpaceTech companies. Before 2021, just six space companies had gone public, raising a combined $0.8bn. However, 12 space-related businesses have announced SPAC mergers this year alone, representing more than $7bn of investment. While satellite constellation and launch companies will continue to attract interest from the SPAC market this year to help aid new leading technologies.
James Bruegger, Chief Investment Officer of Seraphim Space, said: “The rapid growth that we saw in our last Index report for Q1 2021 has only continued to rise exponentially. The fact that 85 per cent of last year’s record investment has been completed in the first half of 2021 shows how much pent-up market demand there is to invest in leading SpaceTech companies. The Seraphim Space Investment Trust’s oversubscribed Initial Public Offering last month provides another way for investors to gain access to this exciting market which is set for substantial growth.
“SpaceTech is at the nexus of mega-trends that will define societal change over forthcoming decades and is now playing a unique role in addressing the world’s most pressing problems. Radical advances in the space sector mean a data and connectivity tsunami is transforming the world as we know it, driving the next major paradigm shift in the global economy. The space industrial revolution is demonstrably in full swing as 34 rockets launched 573 satellites during the quarter. The new space economy is now primed for a record-breaking 2021 and beyond.”
The Seraphim SpaceTech Index Q2 2021 is available to view on https://seraphim.vc/research/#research
Seraphim Space Investment Trust is the world’s first listed fund focused on SpaceTech. The Company seeks exposure predominantly to early and growth stage private financed Space Tech 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 listed on the Premium Segment of the London Stock Exchange on 14 July 2021, following an oversubscribed IPO raising £178.4 million. It currently has exposure to 15 SpaceTech companies and has agreed to acquire investments in a further four companies by 31 December 2021 with a current estimated aggregate value of £70 million (subject to variation ahead of the acquisitions being completed) and issue shares with a corresponding value (at the IPO price) to the selling investors.
Further information is available at: www.seraphim.vc
Seraphim used a wide range of different data sources to compile our investment tracker. This includes proprietary, off-market information from our deal flow and network, deal databases such as Crunchbase, industry news sources such as SpaceNews and Techcrunch, and public announcements from companies themselves. Seraphim only include third party capital invested on an arm’s length basis and therefore do not include personal investment that the likes of Jeff Bezos may make in their own space initiatives.