® SPACE INVESTMENT QUARTERLY Q4 2019 The most comprehensive market intelligence – from the investors at the forefront EXPLORE INVEST ASCEND ® ® WELCOME TO THE Q4 2019 EDITION OF THE SPACE INVESTMENT QUARTERLY. With $767M invested into Space companies in the fourth quarter, total funding for the year has reached $5.8B, making 2019 the largest year on record for Space investment. Cumulatively, $25.7B has now been invested into 535 unique space companies since 2009. Funding for the year was primarily concentrated in large, later-stage deals. In addition to SpaceX, Blue Origin, and OneWeb’s $1B+ investment rounds, we saw a record number of Series C+ raises from companies like Relativity Space ($140M), LandSpace ($70M), Satellogic ($50M), Orbital Insight ($50M), and Spire ($40M). We believe this reflects a healthy maturation of the entrepreneurial space ecosystem as early-stage companies graduate from concept to growth. While investment has primarily been concentrated in the U.S., 2019 provided evidence that the Entrepreneurial Space Age has gone global with the amount of non-U.S. funding doubling Y/Y. Q4 2019 was particularly active for China, with 34% of funding in the quarter. Capital was invested primarily in the Launch and Satellite industries in 2019, as it was for most of the decade. Going forward, we expect robust deal volume in Satellites to continue as applications for satellite imagery develop. However, we also anticipate greater activity in nascent markets as new startups are able to leverage pre-existing infrastructure and government programs like NASA’s Tipping Point and NextSTEP, the Air Force’s AFWERX, and the Space Force’s Commercial Solutions Opening. LeoLabs, a Space Angels portfolio company, is a critical example of a startup building on top of space infrastructure. In October, the company unveiled its new Kiwi Space Radar capable of tracking objects as small as two centimeters in low Earth orbit. With thousands of satellites in orbit and tens of thousands expected to be launched in the coming years, this technology is especially important as companies seek clear orbits to safely operate in. This past decade, the entrepreneurial space ecosystem has proven itself to be financially robust, increasingly global, and thematically diverse. With the strong momentum going into the next decade, we at Space Angels are incredibly excited to continue supporting the entrepreneurs at the forefront of innovation in the space economy. © Space Angels 2020 Front cover image courtesy of LeoLabs 3 ® ® DAWN OF THE ENTREPRENEURIAL SPACE AGE YEAR-TO-DATE EQUITY INVESTMENTS Cumulative Equity Investments From 2009 To Present Investment Amount Governmental Space Age Entrepreneurial Space Age 1969 2009 SpaceX first successful launch of commercial payload Apollo landed on the moon 2010 SpaceX publishes launch prices; introduces market transparency 2012 2014 SpaceX Dragon becomes first commercial space vehicle to berth with ISS 347 Companies $12.3 B 2015 NanoRacks launches commercial deployment via ISS $25.7B 2018 SpaceX lands orbital booster, ushers in reusability SpaceX Falcon Heavy unlocks commercial deep space operations Investment in Space1 Launch 37 Companies $15 M $20 B $2.5 B 13% $1.5 B 400 $15 B 51% $1.0 B 22% $.5 B 300 11 Companies $518 M Biosphere Seed $10 B 11 Companies $71 M $0 Seed Series A Series B Series C Late Stage4 $5 B Industrials 100 Investment Amount 2012 2013 2014 2015 2016 2017 2018 Logistics 2019 Positioning, Navigation, Timing Operations & Ground Segments $2.5 B Annual Investment Source Cumulative Investment Location United Kingdom 7% France 24% $2 B China Singapore Japan Po $0.5 B $0 Launch Satellites Logistics Other2 $1 B $0 2012 2013 2014 2015 2016 2017 2018 2019 Funding in 2019 increased 73% Y/Y and surpassed 2017 as the largest year on record for Space investment by nearly $700M. Capital was evenly distributed among Angel/Individual, Corporate, and Venture Capital, with each contributing about a third of total investment. 1. Cumulative non-governmental equity investment 2. Other includes Foundations, Private Equity, Sovereign Wealth Funds, Mutual Funds, Crowd Platforms, etc. The U.S. continues to lead global investment in Space, receiving 55% of investment since 2009. However, China was particularly active in Q4, receiving 34% of total investment in the quarter. Capital in China went primarily to the Satellite and Launch industries. Industrials Media & Education Interplanetary In 2019, the Heavy Launch sector received the most capital in 2019, driven by Blue Origin and SpaceX. Within Satellites, Positioning, Navigation, and Timing was particularly strong thanks to large raises from Qianxun SI and Hawkeye 360. 3. Early Stage is comprised of Pre-Seed, Seed, and Series A deals 4. Late Stage is comprised of Series D+ and Liquidity Rounds & ts ns en io at gm s er Se nd p O nd rou ou 6 Gr 1 ing tur ts fac en nu on Ma omp unds & C 5 ro 3 55% $3 B ing , Tim n atio vig s , Na ing round n 6 sitio $1.0 B mu 17 nicatio roun n ds s United States Com 5% Other2 Satellites 134 rounds Heavy Launch 6% Corporate 2011 Launch 37 rounds Small Launch $1.5 B Venture Capital 2010 on ati erv bs ds h O roun t r Ea 66 Communications $4 B 4 Earth Observation $2.0 B Angel/Individual 2009 Sma ll L 33 ro aunch unds Manufacturing & Components Int 2011 h nc au s y L nd av ou He 4 r 2010 In 2019, the share of Seed and Series A deals declined slightly, while Series C, Late Stage, and Other increased. Growth in the number of Series C deals was most notable, increasing 75% Y/Y. Q4 was particularly active for Series C deals such as Landspace, Satelles, and Satellogic. Round Share $3.0 B 2009 Other5 By Industry & Sector6 Logistics 1969 Late Stage Series B on Media & Educati h Researc ation & tary Inform lane s Interp rial ust ary Ind et lan erp 10 Companies $199 M Series A Series C Other5 Capital was mostly concentrated in Late Stage with SpaceX and OneWeb each raising $1B+ in later stage rounds. Jeff Bezos’ self-capitalization of Blue Origin made Other the second largest investment category. 200 11 Companies $130 M $5 B 7% 4% $2.0 B Interplanetary $6 B 143 Round Share 5% 13 Companies $193 M $7 B EARLY-STAGE ROUNDS $686M 500 Media & Education Information & Research 198 Investment Amount Number of Companies Receiving Investment1 95 Companies $12.2 B EARLY-STAGE3 INVESTMENT By Stage 535 Satellites $5.8B NUMBER OF ROUNDS With satellite imagery creating dozens of new applications on Earth, it’s no surprise that the majority of deal activity occurs within the Earth Observation sector (33%). Going forward, we expect that trend to continue but we also anticipate more activity in nascent markets as new startups are able to leverage pre-existing infrastructure and government programs like NASA’s Tipping Point and NextSTEP, the Air Force’s AFWERX, and the Space Force’s Commercial Solutions Opening. 5. “Other” includes non-traditional investments and self-capitalization from Jeff Bezos, Robert Bigelow, Richard Branson, and Elon Musk, who we have classified as individual investors providing large investments (hundreds of millions) in their own companies during unclassified rounds 6. See industry segmentation chart. 5 ® ® INVESTMENT ACTIVITY INVESTMENT ACTIVITY Select Space Angels Portfolio Fundraising YTD Investment Amount and Deals by Quarter COMPANY ROUND AMOUNT $2.5 B LEAD SpaceX Series K $540,744,228 Undisclosed SpaceX Series J $226,800,224 Baillie Gifford SpaceX Series L $214,000,000 Ontario Teachers’ Pension Fund HawkEye 360 Series B $70,000,000 Undisclosed Isotropic Systems Series A $14,100,000 Boeing HorizonX Ventures 70 60 $2.0 B 50 $1.5 B 40 30 $1.0 B 20 $0.5 B Eighteen Space Angels portfolio companies have raised capital across 22 rounds in 2019, representing 21% of total equity investment across the Space Economy. In addition to the companies listed above, we also welcomed Picterra, FluroSat, Totum Labs, SpeQtral, and Arbol to the portfolio this year. 10 $0 Launch Satellites Industrials Information & Research Logistics Biosphere Interplanetary Media & Education Number of Deals 0 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Investment in Q4 2019 decreased 23% Y/Y and 64% Q/Q as both Q4 2018 and Q3 2019 saw substantial investment. The Y/Y decline in investment was driven by a decline in deal volume, while the Q/Q decline was driven by a decline in deal volume and average deal size. Top 10 Market Investments YTD7 Cumulative Number of Venture Funds Investing in Space COMPANY ROUND AMOUNT LEAD Blue Origin Self-Capitalized $1,400,000,000 Jeff Bezos OneWeb Undisclosed $1,250,000,000 Softbank Group, Grupo Salinas SpaceX Series K $540,744,228 Undisclosed 8 800 600 SpaceX Series J $226,800,224 Baillie Gifford SpaceX Series L $214,000,000 Ontario Teachers’ Pension Fund Qianxun SI Joint Venture $140,470,000 China Reform Hlds Corp, Shanghai Intl Grp Relativity Space Series C $140,000,000 Bond, Tribe Capital 500 400 Space Angels Benchmark Capital Draper Fisher Jurvetson (DFJ) First Round Capital Founders Fund Index Ventures Kleiner Perkins New Enterprise Associates (NEA) Norwest Venture Parters Joint Venture $125,000,000 HAPSMobile (Softbank) Virgin Galactic PIPE $120,000,000 Chamath Palihapitiya, Horizon X Synspective Series A $80,000,000 aSTART 100 RRE Ventures Sequoia Canaan Partners Lux Capital Felicis Ventures 500 Startups Greylock Capital Techstars Y Combinator 0 2010 2011 2012 2013 2014 Craft Ventures Future Ventures Bond Capital Tribe Capital Forerunner Ventures Accel Partners Andreesen Horowitz Tusk Ventures Earlybird Venture Capital Playground Global Founder Collective Greycroft Thrive Capital True Ventures Khosla Ventures 2009 Investment in 2019 was particularly concentrated within these ten deals, representing 73% of total investment for the year. New additions to this list include Qianxun SI, a Chinese precision navigation company that raised $140M from China Reform Holdings Corporation and Virgin Galactic, which raised $120M through a PIPE from Chamath Palihapitiya and Boeing HorizonX Ventures. 769 Data Collective Foundry Group Promus Ventures Shasta Ventures Bessemer Venture Partners 300 200 Loon 9 700 Pre-2009 2015 2016 Box Group GGV Capital Lightspeed Venture Partners Spark Capital SV Angel 2017 2018 2019 In 2019, a record 148 new venture firms made their first investments in the Space economy, bringing the total to 769. In Q4, Earlybird Capital, a prominent European venture fund, did its first deal in the Space economy, leading Isar Aerospace’s Series A round alongside Airbus Ventures. Total Rounds by Stage Cumulative Acquisitions by Sector Select Acquisitions YTD SELLER BUYER AMOUNT $70 B Inmarsat Apax Partners $3,400,000,000 $60 B Dynetics Leidos $1,650,000,000 $50 B Hispasat Red Eléctrica de España $1,110,000,000 $40 B Genscape Wood Mackenzie $364,000,000 $30 B Newtec ST Engineering $281,300,000 $20 B In Q4, Dynetics, a propulsion systems and small satellite developer, was acquired by Leidos for $1.65B, making it the second largest acquisition of the year. Also in Q4, Scisys, a satellite ground segment infrastructure company, was acquired by CGI Group for $103M. 6 7. Deals listed based on totality of available data 8. Based on legal filings, public disclosures, and media publications, we estimate $1.4B went to Blue Origin following Jeff Bezos’ sale of $2.8B of Amazon stock. 100% 250 Satellites Launch Industrials Biosphere Media & Education 200 Series C+ 150 50% Series A 100 $10 B $0 2009 2011 2013 2015 2017 2019 With a number of venture-backed Space companies graduating to the Series C+ stage, we expect to see exits accelerate in the next couple of years. This will be an essential data point to demonstrate that robust financial returns can be achieved in the Space sector. 9. Although headlines show Synspective raising $100M in July, that figure represents total funding since formation. Series B 50 0% Seed Number of Rounds 0 2015 2016 2017 2018 2019 In 2019, we saw a record number of Series C+ deals. We believe this reflects a healthy maturation of the entrepreneurial Space ecosystem as early-stage (Seed, Series A) companies graduate from concept to growth (Series B, Series C). 7 ® ® With $767M invested into Space companies in the fourth quarter, total funding for the year has reached $5.8B, making 2019 the largest year on record for Space investment. Cumulatively, $25.7B has now been invested into 535 unique space companies since 2009. This past decade, the entrepreneurial space ecosystem has proven itself to be financially robust, increasingly global, and thematically diverse. With the incredible momentum going into the next decade, we at Space Angels are incredibly excited to continue supporting the entrepreneurs at the forefront of innovation in the space economy. SELECT PORTFOLIO MILESTONES OUR METHODOLOGY COMPANIES TRACKED ROUNDS CATALOGUED 1,660 EXITS CATALOGUED 1,287 181 Space Angels launched the Space Investment Quarterly in October 2017 with the aim of uncovering insights about investing in the space economy. The data shown in this report is gathered from a number of sources across many categories, and no single piece of data can be added to our databases until confirmed by multiple sources. Our reported data is subject to change over time as previously undisclosed deals are added to our database. Below is a select list of our data sources: LeoLabs unveils next generation with Kiwi Space Radar SpaceX reaches parachute testing milestone Made In Space Europe wins LSA contract to develop inexpensive robotic arm SpaceX tests Crew Dragon abort thrusters Isotropic Systems Completes Bi-Directional Over-the-Air Satellite Tests Made In Space to launch commercial recycler to space station SpaceX launches second batch of Starlink broadband satellites Investment Databases Crowd Platforms Confidential Sources Public Announcements News • • • • • • • • • • • • • • • • • • • • • Pitchbook Crunchbase Mattermark CB Insights AngelList SeedInvest Kickstarter Indiegogo Diligence Process Company Management Co-Investors Commercial Partners Government Partners Press Releases SEC Filings Events Bloomberg CNBC Fortune SpaceNews TechCrunch ABOUT ADDITIONAL RESOURCES The Space Angels Podcast regularly interviews commercial space entrepreneurs and industry experts, providing insight into the opportunities and risks of early-stage space investing. Information Central dives deeper into the commercial space economy covering major sectors, innovative technologies, and publicprivate partnerships. Are you ready to invest in the most compelling space startups? Space Angels is the leading source of capital for early-stage space companies. Founded in 2007, our portfolio includes many of the most prominent entrepreneurial companies in the Space economy. Through a robust and streamlined web platform, Space Angels provides unparalleled deal access and comprehensible intelligence to its accredited investor members, making it easy to discover, select, and invest in the most compelling space startups. ASSETS CONTACT All charts and tables from this report are available for download. This work is licensed under the Creative Commons Attribution-NoDerivatives 4.0 International License, which means content cannot be altered from its original form and must include Space Angels attribution. Click here to view a copy of this license. 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