Space Capital：2024年Q2空间投资报告

Q22024

SPACE

Space

InvestmentQuarterly

IQ

Privatemarketequityinvestmentactivityandstartuptrendsinthespaceeconomy–fromtheinvestorsattheforefront

$291.3B

CumulativePrivateMarketEquityInvestmentsince2015

1,830

UniqueCompanies

$4.0B

Q2Investment

123

Q2NumberofCompaniesReceivingInvestment

Frontcoverimage:AnimagetakenbyRussiancosmonautSergeyKorsakovfromOFT-2showstheBoeingStarlinerspacecraft

approachingtheInternationalSpaceStation,June7,2024.

Photocredit:SergeyKorsakov/Roscosmos©SpaceCapital2024

Q22024

SpaceIQ|SpaceInvestmentQuarterly

Venturecapitalcontinuestobetheleadingsourceoffundingforspacecompaniesandatthecoreoftheslowdownisalackofliquidity-producingexits.Withstrongmacroeconomicindicatorsatthestartof2024,weexpectedseveralratecutsthisyeartospuraturnaround,whichhaveyettomaterialize.Infact,theFednowexpectstocutinterestratesjustoncein2024amidstubborninflation.This,combinedwithelectionuncertainty,isresultinginaprolongedmarketcorrection,adifficultfundraisingenvironment,andatepidexitenvironment.

However,therearesignsthatinvestmentinthespace

economyisimproving.Followinglastyear’sdecade-lowin

investmentactivity(asinvestorsshiedawayfromrevenue-

starvedLBS),thesituationin2024ismarkedlydifferent.

ThereweremoredealsdoneinQ2thaninthepastnine

quarters.Andhalfwaythrough2024,investmentinspace

Applicationshasalreadysurpassedthefullyeartotalfor2023,indicatingthatwemaybethroughthetrough.Additionally,

followinglastyear’srecord-highgrowth-stageinvestmentsinInfrastructure,thisquarterwasthefourth-highest.Incontrasttothebroaderventuremarket,thisyearisontracktologthehighestacquisitionactivityofthepastdecade,with38deals

YTD.However,thisconsolidationisgenerallytheresultofhardtimesandthevalueoftheseacquisitionsremainssubdued.

AlthoughtheIPOmarkethasyettoopen,weareseeingsignsoflifewithstronginitialdemandforAstroscale’s(TYO:186A)

listingandtheexpectedSierraSpaceIPO.Withstockmarketsclimbinghigherandimprovementsinprivatemarket

valuations,wemaystillseetheexitenvironmentimprovebyyear-end.

Atourrecent

SpaceCapitalSummit

werevisitedour

predictionsfor2024andhowthey’veremainedontarget,

despitemacromarketheadwinds.Thesecatalystsarekeytounderstandingthecontinuedgrowthofthespaceeconomyandbelowisasummaryofhowthesepredictionsare

playingout:

Prediction:AIwillaccelerateinnovationinthespaceeconomyandenablecompaniestounlockthevalueofgeospatialdata.

After12yearsofinvestinginthespaceeconomy,it’ssurrealtoseesomanyVCfirmsfeaturingSpace+AIattheir

annualmeetingsthisyear.AtourSummit,wehosteda

conversationon

Big(Geospatial)Data&AI

,whichexploredhowthePentagonismakinguseofAIwithspysatellitedata.

Meanwhile,Planet(NYSE:PL)isleveraging

syntheticdata

to

simulatesatelliteimageryandenablecustomerconversationsbeforeasatelliteisevenlaunched.Thecompanywillbeamongthefirsttospace-qualifyandflyan

NVIDIAJetsonGPU

ona

satellitetoenableintelligentimagingandfasterinsightsforcustomers.

Prediction:Governmentfundingwillcontinuetobeakeydriverofgrowth.

Inthequestforrevenue,morecompaniesarechasing

governmentdollars—andmoreinvestorsarewillingtofundthem.Forfurtherreading,we’vejust

publishedresearch

ontheinextricablelinkbetweendefensespendingand

commercialspaceintheUnitedStates.AtourSummit,wealsoexploredtheshiftingglobalpowerdynamicsandthe

growth

oftheChinesespaceeconomy

.ChinahasledYTDspace

Infrastructureinvestment,accountingfor37%ofgrowth-stageand63%ofearly-stagefunding,bothsurpassingtheU.S.Risinggeopoliticaltensions,particularlywithChina,continuetodriveincreasesinU.S.governmentfunding.

Prediction:Afterrecordlaunchactivityin2023,expectcontinuedgrowthin2024drivenbySpaceX.

Inthefirsthalfof2024,SpaceXhascontinuedtopushthe

boundariesofwhatispossiblewith67launches,reflying

aboosterforarecord20thtime,andcompletingthefirst

evercontrolledsoftlandingsofStarshipandSuperHeavy.

WiththerapidadvancementoftheStarshiptestprogram,

thespaceeconomyisonthevergeofamajornewphaseof

development,yetmanyareunpreparedforthecomingchange.AtourSummit,weimagined

newmarketopportunitiesina

Starshipworld

.Atthesametime,SpaceX’sdominancewillbechallengedbynearlyadozennewvehiclesthatareexpectedtocomeonlinethisyear.

Prediction:SpaceTrafficManagementwillcontinuetobeakeyfocusareaintheyearahead.

Nearly9,000satellitesarealreadyinorbit,andby2030thisnumberwillincreasebyafactorof11x.Therapidgrowthofinternationalspaceinfrastructureissignificantlyincreasingtheriskofconjunctions(potentialcollisions)anddriving

strongerdemandforspacesituationalawareness(SSA)dataandspacetrafficmanagement(STM)solutions.WithspaceassetsnowgrowingataratefasterthanMoore’sLaw,STMwillundoubtedlycontinuetobeakeyfocusarea.InanotherSummitconversation,wediscussed

whatisbeingdoneto

protectthiscriticalorbitalinfrastructure

.®

3

4

InvestmentintheSpaceEconomy

CUMULATIVEPRIVATEMARKETEQUITYINVESTMENTFROM2015TOPRESENT

TOTALINVESTMENTBYINDUSTRY2%

●Satellites

12%

●Launch

$35.1B

EmergingIndustries

$7.0B

86%

$249.3B

TOTALINVESTMENTBYGEOGRAPHY

1%3%

●China

SingaporeIndia

4%

.France.UK

46%

Indonesia●Canada

Other1

28%

3%3%

USA

7%

5%

TOTALINVESTMENTBYLAYERANNUALINVESTMENTBYLAYERApplications

●Distribution

Infrastructure

NumberofRounds

$50B

3%

27%

$40B

600

$30B

70%

400

$20B

Infrastructure

200

●Distribution

$8.0B

Applications

$204.9B

$10B

$78.5B

0

PRIOR

2009

SpaceXfirstsuccessfulcommerciallaunch

2008

iPhone3GequippedwithGPS

2014

Uberreaches1Mdailyusersand250+cities

1984

FirstCommercialGPSReceivers

2001

gpsOnesupportslaunchofGPSonmobiledevices

1978

NAVSTARIGPSlaunched

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

SpaceX

landsorbitalbooster,

ushersinreusability

PlanetLabsimages

entire

Earthdaily

iPhone14equippedwithdirecttophoneSatCom

service

2005

GoogleMapslaunched

SpaceX

launchescrewmission,ushersincommercialspaceflight

1.“Other”consistsofcountrieseachrepresentinglessthan1%offunding.

YeartoDate

PRIVATEMARKETEQUITYINVESTMENT

NUMBEROFROUNDSEARLY-STAGEINVESTMENT2EARLY-STAGEROUNDS

BYSTAGE•ROUNDSHARE

BYSTAGE•INVESTMENTAMOUNT

$3B

$2B

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

1%

11%

10%

41%

12%

25%

●Seed

●SeriesA

●SeriesB

●SeriesC

LateStage3.Other4

InQ2,investmentinthespaceeconomymaintaineditsstrongmomentum,totaling$4.0Bacross123companies.Late-stageandothercompaniesaretheprimarydriverwith$1.8B,accountingfor46%ofthetotal.Growth-stageinvestmentsfollowedcloselywith$1.7B,markingitthesecond-highestquartersinceQ2’21.

Thetotalnumberofroundscontinuedtorebound,reaching123,thehighestsinceQ1’22.Thisisdrivenbyasurgeofgrowth-stageroundswitha70+%increaseinbothQoQandYoY.Early-stagedealactivityremainedstrong,makingup66%ofthetotalroundshare,slightlybelowitsten-yearaverageof69%.Late-stageandotherroundsalsoremainedelevated,suggestingagrowinginvestorconfidenceacrossallstages.

BYLAYER•INVESTMENTAMOUNTANDDEALSBYQUARTER

$6B

$4B

$2B

$0

130

120

110

100

2023Q22023Q32023Q42024Q12024Q2

Applications

●Distribution

Infrastructure

NumberofRounds

NUMBEROFROUNDSINQ2

123

InfrastructurecompaniesledinQ2with$2.1Bininvestments,maintainingtheirdominanceinfourofthepastfivequarters.Since2020,annualInfrastructureinvestmentshaveconsistentlyexceeded$10B,and2024isonpacetocontinuethattrend.$1.8BApplicationsinvestmentsinQ2hashelpedthelayersurpassits2023total.Despitethisuptickandimprovingmarketconditions,Applicationscompaniescontinuetofacefinancialchallengesnecessaryforexits.

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

3.Late-stageconsistsofSeriesD+andLiquidityRounds.

5

4.Othersincludenon-traditionalinvestmentsliketake-privatetransactionsandself-capitalizationfromJeffBezos,ElonMusk,RichardBranson,andRobertBigelowwhoareclassifiedasIndividualinvestorsprovidinglargeinvestments(hundredsofmillions)intheirowncompaniesthroughunclassifiedrounds.

Infrastructure

Hardwareandsoftwaretobuild,launch,andoperatespace-basedassets

ANNUALINVESTMENTSOURCE

$20B

$15B

$10B

$5B

$0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Other5

Corporate

VentureCapitalAngel/Individual

NumberofRounds

300

200

100

Infrastructureinvestmentledduringthequarterwith$2.1Braised.VCinvestorsaccountedfor51%ofcapitaldeployedexceedingthe40%averagecontributionoverthepastdecade.Angel/Individualinvestorscontinuetoplayanoutsizedroleaccountingfor26%ofQ2fundingand21%since2015,drivenbyJeffBezos’financingofBlueOrigin.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNT

NumberofRounds

400

$40B

300

$30B

200

$20B

EmergingIndustries

Moreonpg8-9

100

$10B

Industrials

0

$0

Satellites

Launch

Stations

Logistics

Lunar

Satelliteindustryinvestmentstotalled$36.4BoverthepastdecadeandhaveoutpacedLaunchforthefirsttime.Launchreceived$34.7Boverthesameperiod,withHeavyLaunchaccountingfor67%ofthistotal.Since2015,threetimesmoreSatellitescompanieshavereceivedinvestmentsthanLaunch,demonstratingashiftinfoundersbuildingspacecraftandtalentmovingtowardsadvancedsensingandconnectivity.

CUMULATIVEINVESTMENTGEOGRAPHY

2%

6%

●USA

5%

●China●FranceUK

Japan.Other1

10%

11%

66%

TheU.S.hasdominatedglobalInfrastructureinvestmentoverthepastdecade,securing66%oftotalcapital,withSpaceXandBlueOriginaccountingfor30%oftheU.S.total.ChinaisinsecondplaceandpoisedtoexpanditssharewithacceleratinginvestmentsandprogressinSmallLaunch,SatCom,andAdvancedManufacturingsectors.FrancetrailedatthirdafterovertakingtheUKwiththesuccessfulmergerofOneWebandEutelsat.CountriesinAsia,notablyIndia,Japan,andSouthKorea,haveallexperiencedanincreaseinearly-stageactivity.

BYSECTOR•CUMULATIVEROUNDSHARE

Industrials80rounds

Lunar76rounds

Manufacturing&

Stations107rounds

HeavyLaunch

46rounds

Components

535rounds

SmallLaunch

318rounds

GPS

GEOINT

228rounds

Logistics127rounds

SpaceportOperations

1rounds

LaunchBrokerage

1rounds

Mediu

Satellites

981rounds

Launch

391rounds

40rounds

SatCom

178rounds

Since2015,theSatellitesindustryhasseenthelargestamountofdealactivityrepresenting56%oftheInfrastructureroundshare.Zoomingin,themostactivesectorshavebeenSatelliteManufacturing,SmallLaunch,andGEOINT,generating61%ofdealsinthelastdecade.InQ2,thistrendcontinuedwiththeaforementionedsectorscontributingto67%ofthetotalrounds.

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

6

6.See

UnpackingtheEmergingIndustries

blogpost

7

TOTALEQUITYINVESTMENTSINCE2015

$78.5B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$30B

$20B

$10B

$0B

SeedSeriesASeriesBSeriesCLateStage3Other4

Following2023’srecordyearforgrowth-stageInfrastructureinvestments,Q2sawcontinuedmomentumwith$1.1B,markingthefourth-highestquarterlyinvestmentin10years.ChinahasledYTDinvestmentwithcompaniesraisingacrossSatCom,Launch,andSatelliteManufacturingcompanies.Chinesecompaniesaccountedfor37%ofthegrowth-stagefundingand63%oftheearly-stagefunding,bothsurpassingtheU.S.

TOPDEALSINTHEQUARTER

COMPANY

ROUND

AMOUNT

BlueOrigin

SelfCapitalization

$500M

SpacePioneer

SeriesC

$210M

MinoSpace

SeriesC

$140M

ICEYE

SeriesE

$93M

PLDSpace

SeriesC

$84M

Apex

SeriesB

$75M

IsarAerospace

SeriesC

$70M

CesiumAstro

SeriesB

$65M

X-BOW

SeriesB

$60M

PrivateerSpace

SeriesA

$57M

Thetop10dealsinQ2amountedto$1.4B,withtheLaunchindustryreceiving68%ofthetotalandSatellites28%.TheSmallLaunchsectorwasthemostactive,featuringonecompanyeachfromtheU.S.,China,Spain,andGermany.SatelliteManufacturingfollowedastheU.S.andChinaseektoacceleratemassproductioncapabilities.Thelistalsofeaturedsevengrowth-stagedeals,demonstratingsustainedfollow-oncapitalavailability.SpaceCapitalportfoliocompanyICEYEraised$93Mtolaunchupto15satellitesin2024.

BYSTAGE•ANNUALROUNDSHARE

100%

50%

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Other4

LateStage3SeriesC

●SeriesB●SeriesA●Seed

Whileearly-stageinvestmentsrepresented72%ofallroundsinthepastdecade,theirsharedecreasedto61%ofQ2roundsand65%ofall2024.Thismayindicateareboundintheinvestmentlandscapeandasgrowthandlate-stagedealsbecomemorefrequent.Thisshiftmayalsobeattributedtoinvestorsfocusingonexistingportfoliocompaniesratherthanaddingnewinvestments,whichdecreasesthenumberofearly-stagerounds.

EXITSBYINDUSTRY

$50B

$40B

$30B

$20B

$10B

$0

NumberofRounds

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Stations

SatellitesLunar

LogisticsLaunch

Industrials

30

20

10

0

Q2saw$3.2BrealizedthroughsevenInfrastructureexits.ThiswasdrivenbytwoEmergingIndustriescompaniesthatmadeup77%ofthetotal,whilefivesatellitecompaniesaccountedfortheremainder.CadenceDesignSystemshasacquiredBETACADESystems,aproviderofmulti-domain,multi-physicssimulationsolutions.Anotherhigh-profiledealisSynopsys’pending$35BacquisitionofAnsys,theleaderinengineeringsimulation.Overthepastdecade,acquisitionshaveconstituted87%ofinfrastructureexitvalueand67%oftherounds.

EmergingIndustries

SubsetofInfrastructureexcludingLaunchandSatellitesindustries

ANNUALINVESTMENTSOURCE

$3B

$2B

$1B

$0

Other5

Corporate

VentureCapital

Angel/IndividualNumberofRounds

60

40

20

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

18companiesacrosstheEmergingIndustriesraisedatotal$0.1BinQ2.VChasaccountedfor80%ofinvestmentsYTD.Since2015,$7.0Bhasbeeninvestedinthiscategoryacross153uniquecompanies.VCInvestorsaccountedfor47%ofcapitaldeployed,followedbyPrivateEquityat26%,andCorporateat17%.Notably,Angelinvestorsalsocontributedasignificantsharewith10%.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNT

$4B

$3B

$2B

$1B

$0

NumberofRounds

60

40

20

0

StationsLogisticsLunarIndustrials

Overthepastdecade,Stationssecuredthemostfundingat$3.7B,followedbyLogisticsat$1.7B,Lunarat$1.0B,andIndustrialsat$0.6B.Zoomingin,theleadingsectorsincludeHabitats($3.3B),On-OrbitServicing($1.0B),Transport($0.5B),andManufacturingandAssembly($0.3B),respectively.ThecompanieswiththelargesttotalinvestmentsincludeAxiomSpaceandSierraSpaceinStations,AstroscaleandD-OrbitinLogistics,ICONandiSpaceinLunar,VardaSpaceandRedwire(NYS:RDW)inIndustrials.

CUMULATIVEINVESTMENTGEOGRAPHY

1%1%

6%

2%

●USA

JapanoItaly

SingaporeCanada

●Other1

13%

77%

U.S.companiesraisedthemajorityofcapitalat77%overthepastdecade.ThisisdrivenbySierraNevada’sspin-off,SierraSpace,ventureinvestmentsinAxiomSpace,ICON,Varda,TrueAnomaly,LeoLabsandself-capitalizationofVast.Japanaccountsfor13%withinvestmentsinAstroscale,iSpace,andGITAI.Italy,Singapore,Canada,GermanyfollowedwithnotableinvestmentsincludingD-Orbit,Qosmosys,NorthStarEarthandSpace,andTheExplorationCompany.

BYSECTOR•CUMULATIVEROUNDSHARE

DeepSpaceSatellites

OnOrbitServicing

Construction

20rounds

63rounds

23rounds

Transport

33rounds

Lunar

Mining&Minerals

SpaceSituational

Logistics

127rounds

76rounds

17rounds

Awareness

52rounds

EnergyGeneration

&Storage

20rounds

Industrials

80rounds

Manufacturing&

DebrisMitigation

12rounds

Assembly

43rounds

Stations

107rounds

Services

61rounds

Habitats

46rounds

Logisticshasledroundactivitysince2019.ThistrendcontinuedinQ2,closing10outof18roundswithanearequalsplitofOnOrbitServicingandSSAcompanies.Thesectoralsoaccountedfor52%oftheYTDfunding.Furthermore,Logisticsmakesup33%ofthetotalroundshareoverthepastdecade,surpassingStationsat27%.ThisemphasizestheincreasinglycriticalroletheLogisticsindustryplaysincultivatingasustainableandvibrantspaceeconomy.

8

9

TOTALEQUITYINVESTMENTSINCE2015

$7.0Bof$78.5B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$2B

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

Since2015,growth-stagefundinghasoutpacedearly-stageinvestment.However,thischangedinQ2withbothhavingraised$1.9B.Thismayindicateappetitefornewinnovationandgrowinginvestorconfidence.Late-stageinvestmenttotalling$2.6Bisheavilyconcentrated(69%)inasinglecompany,SierraSpace.While2023sawnearrecordinvestment,continuedgrowthwilldependonlargegovernmentcontractsandcommercialpartnershipstounlockmoresubstantial,later-stagerounds.

TOPDEALSINTHEQUARTER

COMPANY

PrivateerSpaceOriginSpace

InfiniteOrbitsPsionic

Vyoma

StarsEdge

BlueSkiesSpaceSpaceQuarters

BlackswanSpaceAstronetX

ROUND

SeriesA

SeriesA

SeriesA

SeriesA

Seed

Seed

Seed

Seed

Seed

Seed

AMOUNT

$57M$15M$13M$10M$5M$3M$3M$1M$1M$1M

SevenLogisticsinvestmentsdominatedQ2accountingfor75%ofthecapitalraised.ThiswasledbySSAcompanyPrivateerSpace,whichrecentlyraised$57MinSeriesAfinancingandacquiredEOanalyticsfirmOrbitalInsight.OriginSpace,thefirstChinesecompanydedicatedtotheutilizationofin-spaceresources,raiseda$15MSeriesAround.Interestingly,therearesevennon-UScompaniesonthelist,reflectinginternationalgrowthinthiscategory.

BYSTAGE•CUMULATIVEROUNDSHARE

100%

50%

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Other4

LateStage3●SeriesC

●SeriesB●SeriesA●Seed

Early-stageroundsaccountedfor94%oftotalinQ2and80%ofallroundssince2015.Incontrast,growth-stagerepresentedonly10%,andjust5%forlate-stage.Ahandfulofcompanies,includingSpaceCapitalportfoliocompaniesLeoLabsandImpulseSpace,havebeenabletogrowsignificantlywithacceleratingcommercialrevenuesaswellasgovernmentcontracts.Sustainedmomentumin2024willrequirestrongrevenuegrowthtodemonstrateviabilityofthesenascentmarkets.

EXITSBYINDUSTRY

$2B

$1B

$0

Stations●Lunar

NumberofRounds

LogisticsIndustrials

2016

2018

2019

2020

2021

2022

2023

2024

4

3

2

1

EmergingIndustriescloseditslargestacquisitionduringthequarterwithIngersollRandacquiringspacesuitcompanyILCDoverfor$2.3B,markingthefirstexittransactioninthecategorytoexceed$1B.AstroscaledebutedontheTokyoStockExchange,becomingJapan’ssecondpubliclytradedInfrastructurecompanyafteriSpace.However,publiccompaniesinthiscategoryhavegenerallyunderperformed,strugglingwithconsistentfinancialmetricsduetothemarket’searlydevelopmentandhighCapEx.

Distribution

Hardwareandsoftwaretoconnect,process,andmanagedatafromspace-basedassets

ANNUALINVESTMENTSOURCE

$2.0B

$1.5B

$1.0B

$0.5B

$0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

NumberofRounds

.Other5

Corporate

VentureCapitalAngel/Individual

60

40

20

DistributioninvestmentanddealactivitywereflatQoQwith$0.1Binvestedacross9rounds.Whiletotalfundingislessthanothertechlayers,innovationswithinDistributionhavereachedcriticalmilestonesandhelpmonetizetheInfrastructurebeingbuilt.AIadvancementsarerevolutionizinggeospatialdataprocessingandmapping,enablingreal-timeinsightsandSatComcompaniesareunlockingnewdirect-to-deviceandedgecomputingcapabilitiesandusecases.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNT

$4B

$3B

$2B

$1B

$0

NumberofRounds

80

60

40

20

0

GPSSatComGEOINT

Distributionhasseen$8.0Binvestedacross180companiesoverthepastdecade.Duringthattime,GPScompaniesattracted45%ofthetotalinvestment,withSatComaccountingfor38%.GEOINThasshownrapidgrowthconstituting56%ofdealactivityinQ2and55%ofinvestmentsYTD.Since2022,GEOINThasreceived38%oftotalfunding,significantlyhigherthanits10-yearaverageof18%.

CUMULATIVEINVESTMENTGEOGRAPHY

●USA

●Australia●China

UK

●SouthKoreaIsrael

CanadaOther1

2%1%

4%

8%

10%

60%

12%

3%

Overthepastdecade,U.S.companiesrepresent60%ofthetotalinvestment,followedbyAustraliaat12%,andChinaat10%.TheU.S.fundinglandscapeisdiversifiedbetweenGPS/GNSSandSatCom,whileAustraliaspecializesinGEOINTandChina’sinvestmentsleanpredominantlytowardsGNSS.Withincreasingneedforresilientubiquitouscommunicationsandreal-timespatialinsights,it’spossiblethattheU.S.andChinawillexperienceincreasedinvestmentsatthislayerofthestack.

BYSECTOR•CUMULATIVEROUNDSHARE

●SatCom●GPS

●GEOINT

22%

40%

38%

SatComhasledtheroundsharewith39%ofactivityinDistributionoverthepastdecade.RecenttrendsinSatCominvolveadvancementsthatenablesatelliteoperatorstoprocessdatamoreefficientlyandgainfasterinsights,utilizinginnovationsinmulti-orbitnetworkorchestration,in-spacedatacenters,andend-to-endconnectivitysolutions.GEOINTcontinueditsriseasthemostactivesectorinQ2,with86%ofroundssince2015beingearly-stage,highlightingitsemergingstateandtheneedtounlockgrowthpotential.

10

11

TOTALEQUITYINVESTMENTSINCE2015

$8.0B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNT

$3B

$2B

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

Early-stagefundinghasmaintainedmomentum,representing23%oftotalcapitaloverthepastdecade.Thelackoffollow-oninvestmentsinthegrowth-stageunderscoresthechallengesDistributioncompanieshavefacedwhenscaling.Technologyatthislayerisshiftingawayfromlargelyhardware-centricsolutionstodynamicsoftware-definedcapabilitiesthatbetterreflecttheevolvingneedsofendcustomersandrequirelesscapitaltogrow.

TOPDEALSINTHEQUARTER

COMPANY

Kontakt.io

ROUND

SeriesC

AMOUNT

$48M

ArchetypeAI

Seed

$13M

SofantTechnologies

SeriesA

$4M

Skynopy

Seed

$3M

Qomodo

Seed

$2M

SatComandGEOINTdominatedQ2witheightroundsclosed,butthetopdealwenttoGPS.Kontakt.io,whichusesAI,IoT,andcloudtoprovidereal-timelocationdataandorchestratehealthcareoperations,raised$48MinSeriesCfinancing.ArchetypeAIemergedfromstealthwitha$13MSeriesSeedfinancingroundledbyVenrock,andintroducedNewton,afoundationmodelthatunderstandsthephysicalworldandhumanbehaviorleveragingmultimodaltemporaldata,includingsignalsfromalargevarietyofenvironmentalsensors.

BYSTAGE•CUMULATIVEROUNDSHARE

100%

50%

0%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Other4

LateStage3●SeriesC

●SeriesB●SeriesA●Seed

Q2dealactivityincludedeightearly-stageandonegrowth-stageround.Since2015,early-stageactivityinDistributionhascomprised74%ofthetotalroundshare,ahigherproportionthantheothertwolayers.ThistrendisdrivenbyacontinuousriseinGEOINTrounds,asSatComremainedstableandGPSroundsdecreased.ThishighlightsthesustainedinvestorinterestforinnovationbreakthroughsinGEOINTtounlocknewendapplications.

EXITSBYSECTOR

$4B

$2B

$0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

.SatCom●GPS

●GEOINT

NumberofRounds

10

5

ThreeacquisitionsclosedinQ2,withoneineachofthethreesectors.Iridiummadeitsfirst-everacquisition,acquiringSatelles,aproviderofsecuresatellite-basedtimeandlocationservices.Since2015,90%ofallDistributionexitshavebeenthroughacquisitions,and98%ofthemoperatedintheSatComandGPSsectors.AlthoughGEOINTDistributioncompaniesareseenasstrategic,exemplifiedbyQualcomm’stwoacquisitionsin2024,thesecompanieshavechallengesreachingscaletogeneratelargeexits.

Applications

Specializedhardwareandsoftwarethatutilizesdatafromspace-basedassets

ANNUALINVESTMENTSOURCE

$50B

$40B

$30B

$20B

$10B

$0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

500

250

Other5

Corporate

VentureCapitalNumberofRounds

Angel/Individual

With$1.8BinQ2investment,Applicationsflowsdroppedby52%QoQandincreased167%YoY.DespitethisshiftbeingdrivenbythreemegaroundsledbyScaleAI,wehavealsoobservednumerousbridgeroundsfuelinggrowth-stageandlate-stagefunding.ThismayindicatethatApplicationscompaniesseemtohavemovedpasttheirfundingtrough.However,uncertaintyremainsasvaluationscontinuetoresetandcompaniesawaitfavorableconditionstogopublic.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNT

$200B

$150B

$100B

$50B

$0

NumberofRounds

600

400

200

0

GPSGEOINTSatCom

GEOINTcontinueditsmomentumasthesecondhighestinvestmentsector,accountingfor73%ofQ2fundingandrecordingthefourthhighestquarterinthepastdecade.GPShasdominatedApplicationswith92%oftotalinvestmentsince2015,butchallenginguniteconomics,competition,andgrowth-at-any-costhavecausedinvestorinteresttowane.LBScompaniescontinuetoconsolidate,withregionalleadersseekingbest-basedfinancingalternatives.SatComApplicationsarepoisedforgrowt