SPACE

INVESTMENT
QUARTERLY
Q3 2017
The most comprehensive market intelligence
from the investors at the forefront

EXPLORE INVEST ASCEND

Dear Reader,

Founded in 2007, Space Angels has been at the forefront of

early-stage space investing for over 10 years. Operating as an
angel fund and a venture capital fund, we are focused
exclusively on the entrepreneurial space sector. Due to our
unique position in the marketplace, we have access to the
most comprehensive public and private market transactions,
which we have aggregated here to provide context and
intelligence on space investment and market trends.
The Space Investment Quarterly is based on Space Angels'
proprietary database, focused on non-government equity
investment in commercial space ventures.

In 2009, the world was just beginning to feel the significant

impacts of the global financial crisis. That same year, a little-
known rocket company launched their first successful
commercial payload and in doing so, ushered in what we like
to call the Entrepreneurial Space Age. With that launch,
SpaceX significantly lowered the barriers to entry in the space
industry. By vertically integrating, the company was able to
drastically reduce the cost to get to orbit. But what deserves
at least as much credit is their decision to publish their
pricing, which fundamentally changed the way we do business
in space. This transparency enabled would-be space
entrepreneurs to develop a business plan and raise equity
financing based on those cost assumptions.

With SpaceX now regularly launching and landing rockets,

"Of the nearly 250 space
Jeff Bezos selling $1 billion of his Amazon stock each year to
invest in his space company Blue Origin, and an increasing ventures that have received
number of top-tier venture capital firms investing in space non-government equity
such as Sequoias recent investment in Vector, this is a funding, 88% were funded
very exciting time for the space industry. This
quarterly report will give you the intelligence you need
since 2009, the dawn of the
to make sense of this dynamic new sector. Your Entrepreneurial Space Age."
access to smart space investing starts here.

Sincerely,

Chad Anderson, CEO

DAWN OF THE ENTREPRENEURIAL SPACE AGE
EQUITY INVESTMENTS FROM 2009 TO PRESENT

$12 BILLION

Governmental Space Age Enterpreneurial Space Age

1969 2009 2010 2012 2014 2015

Apollo SpaceX rst SpaceX SpaceX Dragon NanoRacks Blue Origin $10 Investment
landed on successful published becomes rst launches demonstrates in Space(1)
the moon launch of launch prices commercial commercial reusable
commercial enabled space vehicle operations rockets
payload brokerage to berth with via ISS
services Space Station

7 Companies
250
$5,101 M
Launchers
& Landers

118 Companies
$4,880 M Number of
Satellites
Companies
51 Companies Receiving

USA
In-Space
Biosphere
$504.9 M
investment(1)
$6
6 Companies
$115.9 M
In-Space
Industrials

In-Space
17 Companies
$113.5 M
150
Logistics

4 Companies
Planetary $82.8 M
Markets

6 Companies
In-Space $53.9 M
Information
& Research

31 Companies

EU
$8.7 M
Media &
Education
$2

UK

South America
50

North America
Australia
Asia
SEP.
1969 1983 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0

Annual
Investment(2)
$2

Angels

Venture Capital

Corporate

Other

(1) Upper charts represent cumulitave non-governmental equity investment

(2) Lower chart represents annual non-governmental equity investment by investor type $4 BILLION
Source Space Angels

Space Angels 2017

YTD EQUITY INVESTMENTS(1)
Investor Type

Angels Venture Capital Corporate Other

48% 44% 7% 0%

$2.03 BILLION
Total YTD

Investment Amount
by Sector
$1,405 M

$519 M

$47 M $21.5 M $20 M $10 M $4.3 M $1 M

Launchers Satellites In-Space In-Space Planetary In-Space In-Space Media &

LOREM IPSUM
& Landers Logistics Industrials Markets Information Biosphere Education
& Research

Number 12 51 3 3 1 1 2 4
of Deals

1 1 BILLION
Amount by Stage
& Number of Deals

2
8
42 15 2 1 0.2 BILLION
6
Series A
Seed

Series B

Series C

Series D

Series E

Self-Finance(2)

Other

(1) YTD through September 2017

(2) Self-Finance: Non-traditional investments from Jeff Bezos, Robert Bigelow, Richard Branson,
and Elon Musk, who we have classied as angel investors providing large investments
(hundred of millions) in their own companies during unclassied rounds.
Source Space Angels

Space Angels 2017

 TRANSACTION OVERVIEW
YTD 2017 SINCE 2009
TABLE 1: SPACE ANGELS SELECT INVESTMENTS NUMBER OF VCS INVESTING IN SPACE
100
COMPANY ROUND ROUND SIZE MONTH
Ardusat Series A $455k January 80

BridgeSat Series A Undisclosed July 60

Iceye Series A $13M February 40
Oxford Space Syst. Bridge $1.5M June
20
ATLAS Space Bridge Round Undisclosed June
0
Analytical Space Seed $3.5M September
2009 2010 2011 2012 2013 2014 2015 2016 2017
NanoRacks Conv. Notes Undisclosed September
Since 2011, the number of VCs making investments in the space sector has
Stealth Start Up Seed Undisclosed Undisclosed grown significantly. Firms such as Sequoia, Bessemer, DFJ, and RRE have
all made space investments.
Space Angels has completed 10 transactions year-to-date across a variety
of market segments including remote sensing, satellite communication,
deployable structures, ground stations, and commercial space station AVERAGE ROUND SIZE
services. Millions
120 Space General VC
TABLE 2: SELECT MARKET FUNDING 100
COMPANY ROUND AMOUNT MONTH 80
Blue Origin Self-Finance $941M May 60
SpaceX Series H $325M July 40
Kacific Series B $125M February 20
Rocket Lab Series D $75M March 0
Kymeta Series E $73M April Seed Series A Series B Series C Series D
Orbital Insight Series C $62.5M May Seed and Series A space investment are in-line with the broader venture
industry. Early indications suggest that later stage rounds are similar in size,
Swift Navigation Series B $34M June but the total sample is still small.
Descartes Labs Series B $30M August
Satellogic Series B $27M June CUMULATIVE EXITS BY SETOR
Billions
Vector Series A $21M June
30 Satellites Information & Research Launchers & Landers
Moon Express Series B $20M September
Jeff Bezos' commitment to self-finance Blue Origin represents the largest 23
investment year-to-date. Venture activity has shown a meaningful increase
across Series A and B, driven in part by Sequoia, Bessemer, and Promus'
investmetns in launch systems. US companies have secured over 88% of all 15
capital deployed this year.
8

TABLE 3: NOTEABLE EXITS

0
SELLER BUYER AMOUNT MONTH
2009 2010 2011 2012 2013 2014 2015 2016 2017
DigitalGlobe MDA $2.4B February
Exits have primarily come from the Satellite segment as this is an established,
E2V Teledyne $789M March existing market with many potential acquirers as incumbents look to startups
for innovation.
Thuraya China Trends $195M January
Avio IPO $100M April AVERAGE EXIT AMOUNT BY SECTOR
Norsat Intl Hytera $67M June Millions

Ultisat Speedcast $75M July $600

Inthinc Orbcomm $35M June $500

Coleman AerojetRocketdyne $15M February $400

$300
OmniEarth EagleView N/A April
$200
MDAs acquisition of DigitalGlobe is the second-largest acquisition in the
satellite industry over the past 20 years, behind only Harris $3B acquisition $100
of Exelis in 2015. Looking ahead, Northrop Grumman has agreed to buy Orbital
ATK for $7.8 billion in cash and will assume $1.4 billion in outstanding debt. 0
In-Space Satellites Launchers & Media & In-Space
This deal is expected to close in the first half of 2018. Information & Landers Education Industrials
Research

The satellite industry is the most developed generating 28 exits since 2009.
In-space Information & Research is the smallest dataset with only one exit,
Wyle Laboratories in 2016.

Space Angels 2017

MARKET DRIVERS
Number of Satellites Launched
by Weight & Function
N/A
4 1
30 29 3 9
N/A N/A
ISS Logistics
3
3
1 40
5
Communications
1
1 Research 74
1

Astronomy
1
41 1 9
17
3 2 4 18 152
4
Earth observation N/A

179
1
1
1
3 N/A Technology
4 3
5 Missile demonstration
Navigation warning Reconnaissance
29
5 3 8

Weight Class Mass (kg)

Large Medium Mini Micro Nano
>1000 500 to 1000 100 to 500 10 to 100 1 to 10

41

28

Commercial(1) vs Launches & Satelittes

26
Governmental(2) Launches launched by country
55

35
10 9 9
5 6
15

India USA Russia France China Japan

2010 2011 2012 2013 2014 2015 2016
SEP. 15
6

2017
17

83
100
(1) Commercial: Launch vehicle developed with risk capital by a prot-seeking
company to serve commercial and government customers
(2) Governmental: Launch vehicle developed under contract funded by 137
a state-owned entity, government agency, military, or similar
Source Space Angels

Space Angels 2017

THE SPACE ECONOMY
DYNAMIC MARKET SEGMENTATION(1)

Terrestrial

Moon
Cis-lunar

Technology Total
Readiness Investment
Level(2) by sector

Mars
Media &
$8.7 M
Education

$4,880 M
Satellites

Launchers $5,101 M
& Landers

In-Space
$53.9 M
Information
& Research

$113.5 M
In-Space
Logistics

Deep Space
$115.9 M
In-Space
Industrials

$504.9 M
In-Space
Biosphere

$82.8 M (1) Market segmentation methodology and DEFINITIONS AVAILABLE HERE.

(2) Technology Readiness Level: Measures the maturity of technology based on
Planetary NASA denitions.
Markets Source Space Angels

Space Angels 2017

As we reach the end of 2017, we believe that Space Angels Information Central provides a
the commercial space industry will set new way to dig deeper into entrepreneurial space
records across investments, exits, and including the major industries, the innovative
launches. These strong fundamentals have us technologies, the public-private partnerships.
extremely optimistic for about the future and Space Angels Weekly News Roundup: Each
the continued growth of the commercial space week the Space Angels team rounds up the
industry. We continue to see high quality leading news of the week, in an easy to read
investment opportunities across all market newsletter. Subscribe at the Space Angels
segments and expect to close the year website.
completing a record number of investments.
Ou r po r tfo lio c omp anies have ma de
tremendous accomplishments this year.
Theres never been a better time
Select Portfolio Successes to get involved in commercial
Planet launches satellite constellation to space. If youre ready to start
image the whole earth daily
Vector Space Systems raises $21M Series A investing in private space
led by Sequoia companies, we invite you to
World View completes 5-day test flight for
Stratollite balloon
apply for membership at
Astrobotic has struck a deal with United spaceangels.com.
Launch Alliance to launch its Peregrine lunar
lander to the moon on an Atlas 5 rocket in 2019
Planetary Resources And The Government
Of Luxembourg Announce 25 Million
Investment And Cooperation Agreement
Accion Systems partners with York Space to
collaborate on propulsion system
NanoRacks partnering with Boeing to
produce first commercial airlock for the
International Space Station
BridgeSat partners with AstroTerrace to
develop an optical communication system for
Japans Engineering Test Satellite 9

Additional Resources
Space Angels has launched a podcast with
the aim of helping investors gain insight into
the opportunities and risks of early-stage space
investing. Space Angels interviews influential
CEOs of space companies in each episode to
better understand their bold plans to create a
future with millions of people living and working
in space. You can listen on the Space Angels
website or on iTunes.

Space Angels 2017