Space Capital is a New York-based venture capital firm focused exclusively on investing in space technologies. With over $100 million under management, Space Capital targets seed stage companies that are developing innovations to power industries here on Earth using space-based infrastructure.

By getting in early, Space Capital aims to play a pivotal role in building the space companies that will drive transformation across industries for decades to come.

Investment Thesis: Why Space?

Space Capital’s investment thesis is centered on the massive growth and disruption happening in the space industry. As Managing Partner Chad Anderson describes:

“In the same way that every company today is a technology company, every company of tomorrow will be a space company.”

Space Capital sees space infrastructure like satellites and rockets as the essential building blocks that will transform major terrestrial industries. Just as investments in companies like Intel, Microsoft and Apple built the foundation for today’s digital economy, Space Capital believes the space industry is laying the groundwork for the economy of the future.

Investment Focus Areas

Space Capital focuses its investments into three key areas of the space tech stack:

Infrastructure: Companies building rockets, satellites, ground stations, infrastructure software, etc. This includes launch providers like SpaceX as well as satellite manufacturers and operators.

Distribution: Companies using space-based infrastructure to distribute data and services to end users. Examples include space-based connectivity, imagery, analytics, tracking, monitoring, etc.

Applications: Space-enabled companies in agriculture, finance, logistics, mobility, energy, entertainment, government, environment, and other industries. This captures the full downstream impact of space tech across the global economy.

Over the past decade, 86% of private space investment has gone to the satellite distribution layer, 12% to launch infrastructure, and only 2% to emerging space applications.

However, Space Capital sees huge potential in particular for the applications layer as space-enabled technologies penetrate mainstream industries. The firm cites AI as a key driver that will rapidly enhance distribution layer companies and accelerate adoption across enterprise, consumer and government sectors.

Notable Investments

Space Capital’s portfolio reflects a strong focus on infrastructure and distribution companies as well as emerging applications leveraging space tech:

Swarm Technologies: Developer of small satellites and IoT connectivity for low-cost access to space-based data, tracking, and communication services.

Umbra Lab: Provider of geospatial intelligence through a constellation of radar imaging satellites with the ability to see through clouds and at night.

Orbion Space Technology: Manufacturer of electric propulsion systems for satellites to lower launch costs and extend satellite life.

Hydrosat: Climate analytics company using thermal infrared imaging satellites to deliver data on water resources, agriculture, and the environment.

Prewitt Ridge: Developer of monitoring and analytics software for managing satellite constellations and space-based infrastructure.

Kleos Space: Building out a constellation of radio frequency reconnaissance satellites to deliver global activity-based intelligence data.

Arbol: Using satellite imagery and AI to provide real-time predictive analytics on supply chains to increase resilience.

Ursa Space Systems: Offers a data platform and analytics tools to provide commercial satellite operators with insights on industry trends and own operations.

Orbit Fab: On-orbit satellite refueling service to extend satellite life and prevent space debris.

Lunar Outpost: Robotics and sensor company focused on developing technology for lunar exploration and ISRU.

Space Capital’s portfolio reveals a strong emphasis on space-based connectivity, data collection and analytics companies as well as infrastructure plays that will lower costs and enhance distribution models. The firm also has some exposure to more futuristic markets like orbital logistics and lunar resources.

Investment Criteria and Process

As one of the most active space-focused VC firms, Space Capital receives hundreds of investment proposals per year. The firm has a rigorous evaluation process when assessing potential additions to its portfolio.

Space Capital looks for exceptional founders attacking ideas that leverage space-based infrastructure to drive transformation here on Earth. Specific criteria include:

• Team: Emphasis on founders with deep expertise in space tech as operators or engineers.
• Idea: Solutions that harness space tech to impact major terrestrial industries in a unique way.
• Market: Large addressable markets where space tech can enable disruption and value creation.
• Capital efficiency: Ability to drive major impact with modest capital before raising larger rounds.
• Defensibility: Sustainable competitive advantages in technology, data, distribution model, etc.
• Scalability: Potential to scale rapidly within 5 years to serve global markets.
• Returns: Ability to deliver top-tier venture capital returns in the range of 10x invested capital.

Once Space Capital makes an investment, the firm provides hands-on support to founders across a range of areas including recruiting, partnerships, corporate development, follow-on financing, and exits.

Exits and Returns

While a relatively young firm, Space Capital has seen early outcomes across its portfolio. Notable exits delivered through M&A or IPO include:

• Kleos Space: IPO on the Australian Stock Exchange at 4X return in under 3 years.
• Prewitt Ridge: Acquired by Spire Global at over 5X return in 2 years.
• Swarm Technologies: Acquired by SpaceX reported at over 10X return in 4 years.