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SpaceX-led investment of $ 1.9 billion

The Falcon 9 rocket will begin its Starlink mission on January 20, 2021.

SpaceX

Private investment in space companies reached $ 1.9 billion in the first quarter, according to a Wednesday report by New York-based company Space Capital.

“Late trading continued to grow in the first quarter, with the top 10 rounds accounting for 77% of total investment,” said Chad Anderson, managing partner of Space Capital.

“In the early stages, as VCs drive the expansion of past capital raised in 2020, they will see larger transaction sizes with higher valuations and looser terms,” ​​he said.

The Quarterly Space Capital Report categorizes industry investments into three technology categories.

The first infrastructure includes what many consider to be a space company, such as a company that manufactures rockets and satellites.

The other two categories are applications and distribution. The former includes space-dependent services such as ride-hailing services and navigation, and the latter includes ground-based technologies that connect to space-based networks.

Since 2012, Space Capital has tracked a total of 1,480 companies in three categories and has invested a cumulative total of $ 186.7 billion in global equities.

Extensive analysis of the space economy reflects Anderson’s underlying treatise, and increasingly recurring phrases in the industry were created to describe it. “Just as every company today is a technology company, every company tomorrow will be in space. Companies.”

Space infrastructure “very likely to exceed $ 10 billion this year”

Anderson believes that investment in space infrastructure is “very likely” to exceed $ 10 billion this year, which will exceed the 2020 record of $ 8.9 billion.

According to Anderson, OneWeb, Amazon and Telesat’s satellite broadband communications efforts are expected to raise additional capital “for the rest of the year.”

He said Jeff Bezos “hasn’t put new cash into Blue Origin” yet, and Elon Musk’s “SpaceX continues to drive big initiatives like Starlink and Starship, so additional capital. Will be acquired. “

Anderson also said that investments in satellite companies, which have accounted for about half of space infrastructure trading activity since 2012, will have a direct impact on the application layer of companies tracked by Space Capital.

“Satellites emit all the data that generates $ 150 billion. [total equity investment since 2012] In the application. “

Expected more space SPAC

The 16th electron launch in November 2020, when the company first recovered the rocket after the splashdown.

Rocket Lab

Space Capital is tracking eight space deals with SPAC or special purpose acquisition companies, which are expected to close and “more exits are approaching,” the report said.

Seven of these companies belong to the Space Infrastructure segment, and the termination of SPAC will add nearly $ 3 billion in cash to their balance sheets.

A SPAC or special purpose acquisition company is a shell company that raises funds from investors through an initial public offering, uses its capital to purchase a private company, and usually goes public within two years.

“We welcome access to the additional capital that SPAC provides to infrastructure companies, but be aware that valuations and growth targets may not be met for companies that do not have a defensive data angle,” Space Capital said. Stated.

Defensive data angles mean that companies offer more services than launching rockets into orbit, Anderson said. He cited Rocket Lab, which merges with SPAC Vector Acquisition, as an example. Last year, the company expanded into spacecraft system services.

“We’ve seen SpaceX lead again in this way. They’re the first launch business, but the main driver of their reputation is their satellite communications services business. [called Starlink], And many other things they are doing, “Anderson said.

Private investment in these SPAC PIPEs, or public capital, will also boost total investment in the second quarter, which Anderson said “will be large.”

He believes there are three “very likely” companies to announce the merger of SPACs in the coming months, and expects a total of about 12 space SPAC deals per year.

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SpaceX-led investment of $ 1.9 billion

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