Despite COVID-19, global space continues to attract strong investment. Q2 2021 saw record deal activity: $11.9 billion in private capital from January to June and 14 “mega deals” of $50 million or higher, per the Seraphim SpaceTech VC Index. Bank of America expects the space industry to triple to $1.4 trillion within a decade.
Candace Johnson of Seraphim Capital — the world’s first space tech fund, which has funded six space constellations and over 50 startups — said: “We are in the golden era of space.” She cited three drivers: IoT enabling sensors everywhere; miniaturization driving down access costs; and exposure brought by Musk, Bezos, and Branson.
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Promus Ventures’ Mike Collett warned: “Many valuations for some of these businesses are clearly ahead of themselves.” He anticipates dramatic repricing of firms that fail to execute. Promus invested in Spire Global in 2014 and has since backed Rocket Lab, Iceye, Mapbox, Cape Analytics, and Swift Navigation. “A rising tide lifts all boats, and this continues to be the case in the space venture capital world.”
Johnson, co-founder of SES in 1983, emphasized the growing role of IoT: “With IoT, we are using space to access the universe and the planet. It’s all about location, mobility, the environment and the rise of Internet of Things.” She prefers “creation” over “disruption” — looking for companies creating entirely new markets. Seraphim undertook an oversubscribed $300 million IPO on the London Stock Exchange.
Collett concluded: “Ultimately, it is always about the team, and if they have shown they are able to define their unique technical advantage and convince other enterprise and government customers at an early stage to contract for their platform.” VS
