Synopsis
The report, titled “Seraphim Quarterly Review of Global Private Investment for Q4 2023,” provides an in-depth analysis of investment trends in the space technology sector (SpaceTech). Key insights and trends from the report are summarized below:
Resilience in SpaceTech Investments Amid Economic Uncertainty
- Despite a general 35% decline in venture capital (VC) investment between 2022 and 2023, SpaceTech has notably outperformed other sectors.
- Total annual investment in SpaceTech for 2023 was $6.8 billion, almost equivalent to 2022’s investment figures.
- Q4 2023 emerged as the most active quarter of the year, with $2 billion invested across 127 deals, marking a record high in both late-stage and early-stage investments.
Leading Sectors and Major Investments
- The “Platform” sector attracted significant investment ($1.8 billion), with SpaceX being a major contributor.
- The “Beyond Earth” sector also saw substantial growth, raising $1.6 billion and focusing on advancing next-generation space infrastructure.
- Capital-intensive businesses, particularly those owning or operating assets in space, attracted the largest investment rounds.
- Firefly Aerospace secured the biggest deal of the quarter with a $300 million investment.
- Japanese corporate investors played a significant role in these large investment rounds.
Merger and Acquisition (M&A) Trends
- NewSpace businesses were active acquirers throughout 2023, with major transactions conducted by private equity firms and corporates.
- Key transactions included L3 Harris’ acquisition of Aerojet, BAE’s acquisition of Ball Aerospace, KKR’s takeover of OHB, Advent’s acquisition of Maxar, and the merger of Eutelsat and OneWeb.
- M&A activity in 2023 showed a record number of 30 transactions, indicating strategic moves by larger players in the industry.
SpaceTech SPAC Market
- The SPAC market in SpaceTech remained turbulent, with Virgin Orbit being the only SpaceTech SPAC to declare bankruptcy. Other companies like Astra and Momentus faced challenges.
Global Investment Activity
- Investment in SpaceTech proved resilient, with overall activity and deal volumes indicating a healthy space economy.
- There was an increase in deals across all stages except Series A.
- North America and Asia experienced the most significant growth in deal activity.
- The US continued to lead in terms of investment volumes, with Asia showing robust growth and Europe maintaining steady progress.
Sector Dynamics and Outlook
- The “Beyond Earth” sector saw a remarkable surge, accounting for 24% of total investment in 2023, up from 1.6% in 2020.
- The report observed a reduction in investment in the “Analyse” category, possibly due to market challenges.
- The space sector is seen as insulated from broader economic cycles due to its strategic importance and rapid technological advancements.
Methodology and Further Research
- The report’s findings are based on various data sources, including proprietary information, industry news, and public announcements.
- Seraphim, the publisher, is a leading specialist investor in SpaceTech, combining investment funds, accelerators, and an angel investor platform.
In summary, the report portrays 2023 as a year of resilience and high activity in SpaceTech investments, with significant contributions from the “Platform” and “Beyond Earth” sectors. Despite economic uncertainties, the SpaceTech sector continued to attract substantial investments and showed promising signs of growth and innovation.
