Space Capital：2023年第一季度太空投资报告

Q1

2023

SpaceQ12023

Investment

Quarterly

PrivatemarketequityinvestmentactivityandstartuptrendsintheSpaceEconomy–fromtheinvestorsattheforefront

$272.2B

CumulativePrivateMarketEquityInvestmentsince2014

1,746

UniqueCompanies

$2.2B

Q1Investment

89

Q1NumberofCompaniesReceivingInvestment

FrontcoverisanimageofSpaceX’sstatic-firetestoftheStarshipSuperHeavyboosterinFebruary,thelasttechnicalmilestonebeforeanorbitallaunchattempt.

©SpaceCapital2023

Q12023

WelcometotheQ12023editionoftheSpaceInvestmentQuarterly.

TheventuremarketcontinueditsresetinQ1’23drivenbyachallengingmarketandrateenvironment.Broadly,acrosstech,venturefundingtostartupsfellbymorethan50%YoYto$76Bgloballyand$37BintheU.S.,the

lowestin13quarters

.ThisdirectlyaffectsinvestmentintheSpaceEconomygiventhatVCscontinuetobetheprimarysourceofcapitalforspacecompanieswith$1.3Binvestedacross68roundsinQ1,accountingfor60%oftotalinvestmentand76%oftotalrounds.

Withatotalofjust$2.2BinvestedinQ1–a53%decreasefromthepriorquarter–thiswasthelowestquarterforspaceinvestmentsince2015.

Thissignificantcontractionhasleftmanycompaniesvulnerabletofundinggaps,particularlyfordeeptechandgrowth-stagebusinesses.ThesuddenfailureofSiliconValleyBankhasexacerbatedaccesstocapitalgiventhatthebankwasaleadingproviderofventuredebt,whichhadenabledcompaniestoextendrunwayandavoidpressuredvaluationsinadifficultfundraisingenvironment.

Weareseeingasharpbifurcationbetweenthewinnersandeveryoneelse,asthemarketmaniaoftheprevioustwoyearshasfullysubsided,touristinvestorshaveleftthemarketandVCsareincreasinglyreservingcapitalforcompaniesbuiltonstrongfundamentals.ThisisparticularlyapparentinLaunch.Ofthe100+launchcompaniesthatcollectivelyraised$27Boverthelastdecade,therearecurrentlyonlytwothatareoperational:

SpaceXandRocketLab.SeveralaspirationallaunchcompanieshadsetbacksinQ1,whilesomemadeprogress.ABL’srocketexperiencedananomalyandshutdownprematurely,whileVirginOrbitalsosawalaunchattemptfail,whichultimatelyledtothecompanyfilingforbankruptcy.Relativity’srocketpassedakeymilestone,whileChina’sSpacePioneerreachedorbitontheirrespectivefirstattempts.ULA,theincumbentLockheed/Boeingjointventure,isreportedly

upforsale

.Meanwhile,SpaceXhadanothersuccessfulquarterwiththereturntoflightofFalconHeavy,thelaunchofCrew-6forNASA,andaStarshipfullwetdressrehearsalalongwitha33Raptorenginestaticfire.ThenextgenStarshipvehiclehasnowbeenstackedandrolledontothepadforitsfirstintegratedtestlaunch.

However,thechallengesinLaunchandthedisappointingperformanceofmanySPACcompaniesdoesnottellthefullstory.SeveralbrightspotscontinuetoemergeintheSpaceEconomy,whicharesettingthestagefornewrecordgrowth.

Risinggeopoliticaltensions-particularlywithChina-aredrivinganincreaseinUSgovernmentfundingtomeettheoccasion.InQ1,atop

Chinesespaceofficialcalledfor

thecountrytospeedupitsplanstodeveloplunarinfrastructureand“seizetheopportunityandleadtheEarth-moonspaceindustrialmarket”.Inturn,NASAestablishedtheMoontoMarsProgramOfficeto“prepareNASAtocarryoutourboldmissionstothemoonandlandthefirsthumansonMars,”accordingtotheNASAAdministrator.Thegovernmentisactingasacatalystandwearealreadyseeinggrowthintheseemergingareas.Despitethetoughereconomicclimate,EmergingIndustriesraisedacombined$309MinQ1,itsthirdlargestquarterinthepastdecadeandmorethan80%ofthefundingin2022.NASA’sArtemisandrelatedprogramsunderpinlong-termgrowthinthecommercialLunarmarketand,inQ1,therewereseveralimportantdevelopments:Axiom’snewspacesuitswererevealedforNASA’slunarastronauts,alunarlandercompany($LUNR)wentpublicviaSPAC,ULA’snewrocketrolledouttolaunchAstrobotic’slunarlanderlaterthisyear(butsufferedananomaly),ispace’slanderenteredlunarorbitinpreparationforasoftlandingattemptinQ2,andLeoLabsannouncedthecommissioningofitsnewradartoimprovetrackingofsatellitesanddebrisinlow-Earthorbit.

TheSpaceEconomyisalsoonthevergeofamajornewphaseofdevelopmentnowthatStarshipispoisedtomakeitsdebut.Starshiphasthepotentialtodramaticallytransformthemarket:itwillmakesomeexistinginfrastructureobsolete,accelerategrowthinexistingmarkets,andenableentirelynewindustries.Meanwhile,advancesinterrestrialtechwillcontinuetoaccelerategrowthdownstream.Forexample,advancementsinAIarerapidlyenhancingthecapabilitiesofDistributionandApplicationscompanies,particularlywithinGEOINT.

Amidthesechallengingeconomictimes,onethingremainscertain—space-basedtechnologiesareplayinganincreasinglyvital

roleinoureconomy,andwillcontinuetotransformtheworld’slargestindustriesfordecadestocome,whichiswhyweareproudtoannouncethe

launchofFund3

tocontinueinvestingattheintersectionofspaceandtech.®

3

RiseoftheSpaceStartups

CUMULATIVEPRIVATEMARKETEQUITYINVESTMENTFROM2014TOPRESENT

TOTALINVESTMENTBYGEOGRAPHY

1%

1%

3%8%

3%

4%

5%

46%

29%

USAChinaSingaporeUK

IndiaIndonesiaFranceCanadaOther1

TOTALINVESTMENTBYINDUSTRY

1%

Satellites

$241.7B

Launch

$26.7B

EmergingIndustries

$1.1B

89%

10%

TOTALINVESTMENTBYLAYERANNUALINVESTMENTBYLAYER

$50B

Applications

3%

20%

77%

800

700

600

500

400

300

200

100

Distribution

Infrastructure

NumberofRounds

$40B

$30B

$20B

InfrastructureDistributionApplications

$55.4B$8.4B$208.5B

$10B

PRIOR

2005

GoogleMapslaunched

1978

NAVSTARIGPS

launched

1984

FirstCommercialGPSReceivers

2014

2015

2016

2017

2018

2019

PlanetLabs

images

entire

Earthdaily

2020

2021

2022

2023

2009

SpaceXfirstsuccessfulcommerciallaunch

2008

iPhone3GequippedwithGPS

2001

gpsOnesupportslaunchofGPSonmobiledevices

SpaceXlandsorbitalbooster,ushersinreusability

Uberreaches1Mdailyusersandexpandstoover250cities

SpaceXlaunchescrewmission,ushersincommercialspaceflight

1.“Other”consistsofcountrieseachrepresentinglessthan1%offunding.

4

5

YeartoDate

PRIVATEMARKETEQUITYINVESTMENT

$2.2B

NUMBEROFROUNDS

89

EARLY-STAGEINVESTMENT2EARLY-STAGEROUNDS

$436M49

BYSTAGE•INVESTMENTAMOUNT

BYSTAGE•ROUNDSHARE

$0.8B

$0.6B

$0.4B

$0.2B

$0

6%

10%

30%

12%

17%

25%

Seed

SeriesA

SeriesB

SeriesC

LateStage3

Other4

SeedSeriesASeriesBSeriesCLateStage3Other4

TotalQ1investmentintheSpaceEconomywas$2.2Bdistributedacross89companies.Growth-stage(SeriesB&C)companiesreceived$1.2B,accountingfor55%ofthetotal.SeriesCroundsrecordedthehighestquarterlyinflowssincemid-2021.

Growth-stageaccountedfor26rounds,whichmarkedasignificantincreasefromthepriorthreequarters.Therewere49early-stageroundsinQ1,accountingfor55%oftotalroundsand20%oftotalfunding.Early-stage(Seed&SeriesA)investmentsincreased8%QoQwiththeaveragedealsizealsoincreasing,indicatingatrendtowardsmoreconcentratedinvestmentsincompanieswithstrongfundamentals.

BYLAYER•INVESTMENTAMOUNTANDDEALSBYQUARTER

$6B

$4B

$2B

$0

2022Q12022Q22022Q32022Q42023Q1

150

100

50

0

Applications

Distribution

Infrastructure

NumberofRounds

NUMBEROFROUNDSINQ1

89

AfterabriefreboundinQ4’22,totalinvestmentsdecreased53%QoQwhilethenumberofroundsheldfirm.ComparingQ1’23toQ1’22,totalearly-stageinvestmentdeclined59%,growth-stageinvestmentdropped18%,andlate-stageinvestmentsfellby90%.

2.Early-stageconsistsofPre-Seed,Seed,andSeriesArounds.

3.Late-stageconsistsofSeriesD+andLiquidityRounds.

4.Otherincludesnon-traditionalinvestmentsandself-capitalizationfromJeffBezos,ElonMusk,RichardBranson,andRobertBigelowwhoareclassifiedasIndividualinvestorsprovidinglargeinvestments(hundredsofmillions)intheirowncompaniesthroughunclassifiedrounds.

6

Infrastructure

Hardwareandsoftwaretobuild,launch,andoperatespace-basedassets

ANNUALINVESTMENTSOURCE

CUMULATIVEINVESTMENTGEOGRAPHY

$15B

$10B

$5B

$0

Other5

CorporateVentureCapitalAngel/IndividualNumberofRounds

200

100

0

USA

UK

ChinaFranceJapanCanadaOther1

1%

2%

6%

3%

8%

14%

66%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Since2014,theU.S.hasaccountedforthelion’sshareofglobalinvestmentinInfrastructure,withSpaceXmakingup25%ofthecountry’stotal.IfEutelsatsuccessfullycompletesitsacquisitionofOneWeb,FrancewillsurpasstheU.K.tobecomethesecond-largestinvestorinInfrastructure.Meanwhile,Chinaaccountsfor8%oftheglobaltotal,fueledbyfundinginSmallLaunchandSatelliteManufacturing.WithitslatestfocusonSatCom,Chinaispoisedtofurtheraccelerateitsinfrastructureinvestments.

Withanother$1.1BinvestedinQ1,therehasnowbeen$55.4Binvestedinto551uniqueInfrastructurecompaniesoverthepastdecade.Investmentinthislayershowedresiliencevs.thebroadermarketwitha17%declineQoQanda33%dropYoY.VentureCapitalinvestorscontinuetobetheprimarysourceofcapitalforInfrastructurecompanies,accountingfor62%oftheinvestmentthisquartervs.71%oftheannualinfrastructurefundingin2022.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNT

BYSECTOR•CUMULATIVEROUNDSHARE

$30B

$20B

$10B

$0

EmergingIndustries

Moreonpg8-9

SpaceportOperations

1rounds

Lunar71rounds

Stations77rounds

Logistics89rounds

HeavyLaunch

36rounds

Industrials70rounds

SmallLaunch

273rounds

GPS

29rounds

SatCom

153rounds

Manufacturing&

Components

424rounds

GEOINT

186rounds

Satellites

792rounds

LaunchBrokerage

1rounds

Launch

335rounds

MediuL

Since2014,SatelliteshavemadeupthelargestportionofdealactivityinInfrastructure,comprising54%ofthetotalroundshare,withLaunchrepresenting23%.WithinthetwoindustriesSatelliteManufacturing,GEOINT,andSmallLaunchhavecollectivelyrepresented78%ofthedealactivityoverthepastdecade.Similarly,thisquartertheleadingsectorswereSatelliteManufacturingandSmallLaunch,accountingfor55%ofthetotalrounds.

Launch

Satellites

Stations

Logistics

Lunar

Industrials

Q1investmentinLaunchwas$0.2B,bringingthecumulativeten-yearinvestmentintheindustryto$26.8B,withSpaceXaccountingfor34%ofthetotal.Satellitecompaniesraised$0.3Bthisquarter,ledbyUSsatelliteoperatorCapellaSpace,ChinesesatellitemanufacturerMinoSpace,andFrenchspacemobilitycompanyExotrail,bringingtheten-yearinvestmentintheindustryto$24.9B.

5.“Other”includesFoundations,PrivateEquity,SovereignWealthFunds,MutualFunds,CrowdPlatforms.

6.See

UnpackingtheEmergingIndustries

blogpost

TOTALEQUITYINVESTMENTSINCE2014

$55.4B

BYSTAGE•CUMULATIVEROUNDSHARE

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$20B

$10B

$0B

SeedSeriesASeriesBSeriesCLateStage3Other4

6%

4%

10%

19%

6%

56%

Seed

SeriesASeriesBSeriesCLateStage3Other4

InvestmentinLaunchandSatelliteshasbeendrivenbylate-stagerounds,highlightingthecapital-intensivenatureoftheseindustries.Since2014,$37.2B,or67%oftotalinvestment,hasgonetolate-stageandOtherrounds,amountingto3xmorecapitalthantheamountinvestedatgrowth-stages.However,Q1buckedthattrend,withgrowth-stageinvestmentstotaling4.5xthecapitalraisedinlate-stagerounds.

Early-stageconstituted74%oftotalequityrounds,indicatingahealthytop-of-funnelforthislayerofthestack.Amongthese,SatelliteManufacturingledthewaywith33%,followedbySmallLaunch(18%),andGEOINT(12%).Atthegrowth-stage,SmallLaunchroundsdominated.Thistrendcouldshiftsoon,asanincreasingnumberofearly-stageSatelliteManufacturing,GEOINT,andSatComcompaniesemergeandmacrofactors,includingclimatechangeandgeopoliticaltensions,continuetodriveupdemand.

TOPDEALSINTHEQUARTER

COMPANY

AMOUNT

ROUND

IsarAerospace

SeriesC

$166M

VoyagerSpaceHoldings

SeriesB

$80M

Astroscale

SeriesG

$76M

CapellaSpace

SeriesC

$60M

MinoSpace

SeriesB

$58M

Exotrail

SeriesB

$58M

Q-Ctrl

SeriesB

$52M

ReactionEngines

SeriesC

$48M

TheExplorationCompany

SeriesA

$43M

FreeformFuture

SeriesB

$41M

EXITSBYINDUSTRY

$40B

$30B

$20B

$10B

$0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

StationsSatellitesLogisticsLaunchIndustrials

NumberofRounds

30

20

10

InQ1,thetop10dealstotaled$0.7B,accountingfor63%ofthequarter’stotalInfrastructureinvestments.WhiletheU.S.hasfrequentlydominatedthislistinthepast,thecurrentroundsshowgrowingglobalinterestinInfrastructure.ThetopdealsinQ1includethreefromtheU.S.,twofromGermany,andoneeachfromFrance,theU.K.,Australia,China,andJapan.AlthoughLaunchandSatellitesattractedthemostcapital,threecompanieswithinEmergingIndustriesjoinedthelist.

Investorsrealized$2.3BthroughsevenInfrastructureexitsinQ1thatincludedsixacquisitionsandonedeSPAC.ThiswaslargelydrivenbyViasat’stacticaldatalinkbusinessacquisitionbyL3HarrisandFirstMode,acompanydeliveringseismicsystemsforbothterrestrialandextraterrestrialapplications,whichwasacquiredbyAngloAmerican.IntuitiveMachines(NASDAQ:LUNR)alsocompletedtheirdeSPACduringthisperiod.Overthepastdecade,acquisitionshaveconstituted90%ofInfrastructureexitvalue.

7

EmergingIndustries

SubsetofInfrastructureexcludingLaunchandSatellitesindustries

ANNUALINVESTMENTSOURCE

CUMULATIVEINVESTMENTGEOGRAPHY

2%

1%1%

USA

Japan

Canada

GermanySwitzerlandItaly

Finland

Other1

2%

2%

16%

75%

1%

U.S.companieshaveattractedthevastmajorityofcapitalacrossEmergingIndustries,representing75%oftotalinvestmentsince2014,ledbyself-capitalizationofBigelowAerospaceandVast,aswellaslargerinvestmentsinICONandAxiomSpace.Japanaccountsfor16%,drivenbyAstroscale,ispace,andGITAI.Canadagrewtoover2%withtherecentinvestmentinNorthStar.TheExplorationCompanyinGermanyandClearSpaceinSwitzerlandhelpedtheirrespectivecountriessurpassItaly,whichwasprimarilydrivenbyD-Orbit.

BYSECTOR•CUMULATIVEROUNDSHARE

$1.5B

$1.0B

$0.5B

$0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Other5

Corporate

VentureCapital

Angel/Individual

NumberofRounds

40

20

0

Withanother$0.4BinvestedinQ1,therehasnowbeen$3.7Binvestedinto134uniquecompaniesinEmergingIndustriessince2014.VCinvestorshavecontributed51%ofthetotal,whileAngelinvestorsaccountforanother22%.Defyingexpectations,Q1wasthethirdlargestquarteronrecordfortheseindustries,whichalreadyamountsto84%ofthefullyear2022total.VCinvestorsaccountedfor63%oftheQ1total.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNT

$1.0B

$0.5B

$0

Manufacturing&

Assembly

42rounds

Mining&Minerals

16rounds

13rounds

EnergyGeneration

&Storage

OnOrbitServicing

33rounds

SpaceSituational

Awareness

29rounds

DeepSpaceSatellites

22rounds

Transport

33rounds

Habitats

30rounds

Services

44rounds

Industrials

Logistics

89rounds

70rounds

Construction

16rounds

igation

Lunar

71rounds

Stations

77rounds

FundingroundsinQ1wereevenlydistributedacrossthefourindustries.Since2014,Logisticshasbeenthemostactiveintermsofdealflow,accountingfor29%ofthetotalroundshare.AlthoughStationshadfewerrounds,itattractedmorecapitalduetothecapital-intensivenatureoftheindustry.

StationsLogisticsLunarIndustrials

Since2014,Stationshavereceivedthemostfunding($1.3B),followedbyLogistics($1.1B),andLunar($0.8B).TheleadingsectorsincludeHabitats($1.2B),OnOrbitServicing($0.6B),Transport($0.4B),andSSA($0.3B).Top-fundedcompanieswereVast,Astroscale,ispace,andSpaceCapitalportfoliocompanyLeoLabs.Q1wasthehighestquarterforLogisticsinvestments,drivenbyOn-OrbitServicing,whichhaditsthird-highestquarter,fueledbyAstroscale,Atomos,andStarfish.

8

TOTALEQUITYINVESTMENTSINCE2014

$3.7Bof$55.4B

BYSTAGE•CUMULATIVEROUNDSHARE

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$1.0B

$0.5B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

5%

4%

4%

6%

15%

66%

Seed

SeriesASeriesBSeriesCLateStage3Other4

Capitaldistributionacrossstagesreflectstheinfancyoftheseindustrieswith38%concentratedinearly-stage.Q1sawthehighestamountofSeriesAfundinginanyquartertodate.Whileapositivesignal,inconsistentfundingpatterns,highcapitalrequirements,andlimitedmarketsizemakeituncertainwhetherthereisenoughgrowthcapitaltoscalecompaniesinthenearterm.However,manyofthesecompaniesarebenefitingfromdefensecontracts,whichishelpingtoaccessnon-dilutivefunding.

Early-stageroundshaveaccountedfor81%oftotalequityrounds,reinforcingthenascentstageoftheseindustries.Thisispartiallyaresultofalimitedmarketthatreliesheavilyongovernmentcontracts.Ahandfulofcompanies,includingSpaceCapitalportfoliocompaniesAstroboticandLunarOutpost,havebeenabletogrowsignificantlyrelyingonrevenues,ratherthanoutsidefinancing.Q1sawtenearly-stagerounds,morethanthecombinedtotalofgrowth-stageandlate-stagerounds.

TOPDEALSINTHEQUARTER

EXITSBYINDUSTRY

COMPANY

VoyagerSpaceHoldings

Astroscale

TheExplorationCompany

FreeformFuture

NorthStarEarthand

SpaceakaNorstar

IntuitiveMachines

VardaSpaceIndustries

ClearSpace

AtomosSpace

AxiomSpace

ROUND

SeriesB

SeriesG

SeriesA

SeriesB

SeriesC

PIPE

SeriesA

SeriesA

SeriesA

SeriesC

AMOUNT

$80M

$76M

$43M

$41M

$35M

$34M

$30M

$29M

$16M

$15M

$0.6B

$0.4B

$0.2B

$0

StationsLogistics

NumberofRounds

LunarIndustrials

4

3

2

1

2014

2016

2018

2019

2020

2021

2022

2023

Investorsrealized$0.2BthroughtwoEmergingIndustriesexitsinQ1:theacquisitionofFirstModeandtheIntuitiveMachinesdeSPAC.$LUNRwasthethirdEmergingIndustriescompanytogopublicviaSPAC,followingMomentusandRedwire.Acquisitionsremainedtheprimaryexitrouteoverthepastdecade,accountingfor88%ofthetotal.

9

Thetop10dealsinQ1signaledprogressinbothearly-andgrowth-stages,withfourcompaniesineachstage.Astroscalecloseda$76MSeriesGfinancingtoboosttheiron-orbitservicingcapabilities.TheExplorationCompanyintendstouseits$43MSeriesAfinancingtocommercializeitsmaidencapsule,NyxMissionOdyssey,designedtotransportgoodstospacestationsandthenreturntoEarth.

Distribution

Hardwareandsoftwaretoconnect,process,andmanagedatafromspace-basedassets

ANNUALINVESTMENTSOURCE

CUMULATIVEINVESTMENTGEOGRAPHY

$2.0B

$1.5B

$1.0B

$0.5B

$0

NumberofRounds

Other5Corporate

VentureCapital

Angel/Individual

40

20

USA

China

Australia

UK

SouthKoreaIsraelOther1

3%

3%

4%

8%

11%

48%

23%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

U.S.companiesaccountfor48%ofthetotalinvestmentinDistribution,followedbyChinawhichaccountsfor23%.U.S.investmentshavebeenevenlydistributedacrossGPS/GNSSandSatCom,whileChinesecapitalhaslargelybeenfocusedonGNSS.WiththeChinesegovernmentpreparingtolaunchamegaconstellationtocompetewithStarlink,fundingforthecountry’scommercialSatComdevelopmentisanticipatedtoincreasesignificantly.

DistributionhadaslowQ1withjust$52Mdeployedacrosssevenrounds.Therehasnowbeen$8.4BinvestedinDistributionacross155companiesoverthepastdecade.BigTechcompanieshavebecomeanincreasinglyimportantplayerwithgroundstation,cloud,location,andmachinelearningservices.Further,agrowingnumberofcompaniesareutilizingthelatestadvancementsinRF,AI,andMLtoenablefasterconnectivitybetweensatellitesandmoreefficientprocessingofdataforterrestrialclients.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNT

BYSECTOR•CUMULATIVEROUNDSHARE

$4B

$2B

$0

SatComGPS

GEOINT

18%

43%

39%

GPS

GEOINT

SatCom

SatComandGPSaccountfor82%ofallinvestmentroundsmadeintoDistributionoverthepastdecade.Giventhat81%ofthe62roundsinGEOINTwereearly-stage,weanticipatethissectortoemergeatanacceleratingspeed.ExamplesincludeSpaceCapitalinvestments,SkyWatch,acompanythathasbuiltamarketplaceforGEOINTdataprovidersandRendered.ai,acompanythatprovidesdataengineeringtoolsforsyntheticdata.

Since2014,51%ofinvestmentintotheDistributionlayerhasgonetocompaniesinGPS,followedby35%inSatCom.GEOINTattractedtheleastamountofcapital,totalling$1.2B.FollowingarecordyearforinvestmentinGEOINTDistributionin2022,thisquartersawthetrendshiftbackwiththeleastamountofcapitalallocated,makingupjust7%oftotalinvestmentswithinthelayer.

10

TOTALEQUITYINVESTMENTSINCE2014

$8.4B

BYSTAGE•CUMULATIVEROUNDSHARE

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$3B

$2B

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

5%

10%

3%

11%

50%

22%

Seed

SeriesASeriesBSeriesCLateStage3Other4

Since2014,two-thirdsofallcapitalinvestedinDistributionhasgonetolate-stageandOtherrounds.Theroundsizesofearly-stagecompaniesoverthatsameperiodhaveincreasedandnowaccountfor15%oftotalcapital.Investmentsatthislayerofthestackarebecomingmoresoftwareandbigdata-oriented.

Early-stageroundsinDistributionaccountfor72%oftotalroundshareinthepastdecade.Thissuggestsamorenascentmarket,withhigherexperimentation,thatcontinuestoaccelerateasthemarketforSatComandGEOINTdevelops,similartoGPS.

TOPDEALSINTHEQUARTER

COMPANY

ROUND

AMOUNT

BluesWireless

SeriesA

$32M

Transcelestial

SeriesA

$10M

Syntony

SeriesA

$5M

Bluedot

SeriesA

$3M

Promethee

Seed

$2M

TailwindImaging

PreSeed

$0M

ExynTechnologies

Bridge

$0M

EXITSBYSECTOR

$4B

$2B

$0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

GPS

GEOINT

SatCom

NumberofRounds

10

5

TherewerejustsevenroundscompletedinQ1,withsixofthemearly-stage.EmbeddedconnectivitycompanyBluesWireless,raiseda$32MSeriesAfinancingroundtoonboardmoreenterprisecustomersandconnecttheirphysicalproductstothecloud.Singapore-basedTranscelestial,amanufacturerofwirelesslasercommunicationsequipment,raiseda$10MSeriesAtoboostinternetinSoutheastAsiaandIndia.

Investorsrealized$1.2BthroughtwoDistributionexitsinQ1,whichincludedtheacquisitionofSierraWireless,anIoTconnectivitysolutionsplatformthatleveragesGNSS,andIguazio,aMLOpsplatformtotransformgeospatialdatapipelines.Since2014,89%ofDistributionexitshavecomeintheformofacquisitionsorleveragedbuyoutswithnearlyallexits(99%)intheSatComandGPSsectors.WhileGEOINTDistributioncompanieshavematuredtheirproducts,theyhavenotyetreachedeconomiesofscale,norqualifyingmetrics,forsignificantexits.

11

Applications

Specializedhardwareandsoftwarethatutilizesdatafromspace-basedassets

ANNUALINVESTMENTSOURCE

CUMULATIVEINVESTMENTGEOGRAPHY

$40B

$20B

$0

NumberofRounds

Other5

Corporate

VentureCapital

Angel/Individual

400

300

200

100

USA

China

SingaporeIndia

IndonesiaUK

CanadaColombiaEstoniaOther1

1%

1%

3%

4%

41%

35%

2%6%

6%

1%

U.S.companieshaveattractedthelargestshareofApplicationsinvestmentsince2014,accountingfor41%.Thiswasprimarilydrivenbythesuccessoflocation-basedservices(LBS)suchasride-hailing,on-demanddelivery,andsocialnetworks,aswellasmapping,sensingtechnologyformobility,andenterprisesoftwareinlogisticsandsupplychain.Chinesecompaniesfollowedcloselywith35%oftotalinvestment,primarilydrivenbythecountry’se-commerceandLBSboom.

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

InvestmentsinApplicationsduringQ1was$1.1B,reflectinga57%decreaseQoQandan81%decreaseYoY.Q1marksthethird-lowestquarteronrecordforinvestmentinApplications.VentureCapitalinvestorsaccountedfor56%ofthetotal,whileAngelinvestmentsonlyrepresented3%.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNT

BYSECTOR•CUMULATIVEROUNDSHARE

$200B

$100B

$0

GPS

SatCom

GEOINT

2%

26%

73%

GPS

GEOINTSatCom

FundingforGPSApplicationsdeclined88%YoY,particularlyaffectingon-demanddeliveryandride-hailingcompanies.ChallengingmarketconditionscontinuedtomakeitdifficultforGPSApplicationstosecurefollow-oncapital.Meanwhile,follo