Chad Anderson, Space Angels
Global Space Activity 2015 (Billions)1 Commercial companies are playing an increasing role in this traditionally government-led sector.
“By the 2020’s, near the planned end of the life of the ISS, NASA’s intention is to transition LEO from being government-led to significantly more private sector involvement (both supply and demand side).” – NASA Commercial LEO Workshop Total: $323 Billion http://www.nasa.gov/directorates/heo/LEO_commercialization/
1 Data from Space Foundation 2016 Space Report ESTABLISHED SPACE BUDGETS EMERGING SPACE BUDGETS $70 BILLION1 $6 BILLION1
1Data source: Space Foundation, Space Report 2016
Governments have a big role to play in commercial space as a partner and early customer to new space ventures. As more countries develop space programs, there will be more private-public partnerships, and more funds available for commercial services.
Space Angels led the seed Launch history and forecast satellites <50kg1 round investment in Vector – Sep 2016. Launch delays were a major factor contributing to the decrease in 2016
Projections based on announced and future plans of developers and programs indicate Companies like Vector Space2 are addressing the bottleneck for as many as 2,300 nano/microsatellites will require launch from 2017-2023.1 nano/ microsatellite launch with customer-centric solutions.
1 Data from SpaceWorks 2017 nano/micro satellite market assessment 2 Vector Space Systems is a Space Angels portfolio company 1
1980 $100,000/lb
Shuttle
2000 $10,000/lb
Delta IV Atlas V
2 2010s $1,000/lb
Falcon 9
Falcon Heavy
2020s $100/lb?
And we are just beginning to see the disruptive role that startups will play in this sector
1 http://www.nature.com/news/many-eyes-on-earth-1.14475 Re-usable and suborbital 2 launch Planet Labs is a Space Angels portfolio company
We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. – Bill Gates
underestimate
You are here.
overestimate How humans think about the future How technological productivity develops
*Amara’s law • Over $3 Billion of non-government equity investment in 2016 (excluding acquisitions, debt raisings, and initial public offerings); $7 Billion over past five years • $3.5 Billion of total invested in 100 U.S. companies; $1.8 Billion in eight UK companies • 46% of total in satellites; 44% in launchers; 10% in other markets
*Data from Space Angels investment tracking database PLANETARY MARKETS
IN-SPACE INDUSTRIALS
IN-SPACE BIOSPHERE
EDUCATION & MEDIA
LAUNCHERS & LANDERS
SATELLITES
*Data from Space Angels proprietary database PLANETARY ROBUST ENGINE FOR MARKETS INDUSTRY GROWTH: the opportunity NOW is in startups IN-SPACE 85 INDUSTRIALS IN-SPACE funded after 2009 BIOSPHERE
EDUCATION & MEDIA
LAUNCHERS & LANDERS
SATELLITES
*Data from Space Angels proprietary database
+
Your logo here? Mean Round Sizes • Seed and Series A round sizes are nearly identical for space startups compared to average size of all venture investments • Capital requirements for Series B+ rounds appear higher for space than the average tech investments, but data is limited; VC investment in B & C rounds is growing - to 38 firms in 2015, up from a high of 16 in 2013 • Those firms, investing in space B+, generally do not invest in Seed & Series A rounds as they are unfamiliar with the sector and so are more risk averse
• It is still early in this young industry, but the limited exits and valuation increases demonstrate potential for exits within 5-7 years • Space is full of incumbent aerospace companies with the cash and the desire to make acquisitions • See exit data on next slide
Exelis Inc. acquired by SpaceX $2.5 Fund lifetime SatMex acquired by Harris Corp. for $3.3B Billion valuation2 Eutelsat for $830M
Time to exit (or valuation milestone) from founding for select commercial space startups.
OpenWhere acquired; Skybox acquired by Google for Deimos Imaging O3B acquired by SpaceX $17 Billion Urthecast IPO $500M; Planet $1.1 billion acquired by Urthecast SES for $700M valuation2 valuation2
1 Data from Space Angels proprietary database 2 Valuations from Pitch Book, Inc.
Ardusat Accion Systems Analytical Space DEAL LEAD Astrobotic DEAL LEAD Kepler Communications Seed Series A Seed Seed Seed
Planet Planetary Resources Stealth Startup Vector Space DEAL LEAD World View Enterprises Series C Series A Seed Seed Series B
<< DEAL SOURCING >>
FUND MANAGER | | SCIENTIFIC ADVISORY BOARD
| TECHNICAL SUPPORT (tech diligence, testing platforms/ facilities, deal flow, grant funding)
CO-INVESTORS | | EARLY DEAL ACCESS
| ALMA MATER
<< PORTFOLIO SUPPORT >>
The data shows that a well-networked venture capital firm has a higher probability of success than firms that typically invest outside of a network. Our strong relationships with successful organizations provide us with an extra advantage for potential returns, while also giving us access to well-vetted deal flow. CASE STUDY: Two Space Angels funded companies working together - CASE STUDY: Two Space Angels funded companies: NanoRacks1 launching Planetary Resources launching aboard SpaceX Falcon 9 rocket. Planet “Dove” satellites from International Space Station (ISS).
CASE STUDY: Two portfolio companies: Atlas will provide telemetry support to CASE STUDY: Space Angels arranged for a tech demo of Ursa Space System Vector, a multi-million dollar partnership. radar system on ISS, saving the company millions in development cost.