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Space Impulse
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Happy Friday, Space Enthusiasts! ??
Space VC recently closed a $20 million Fund II, adding to the slow but steady upward trend in space-focused investments. Read on to learn more about Space VC's approach to investing in early-stage space startups, along with insights on space-focused VC funding in 2024.
In this edition of the Space Impulse Newsletter, you'll find:
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Space News Highlight ?
Space VC's Bold Approach: Investing at Day Zero in Frontier Tech
Space VC, an Austin-based micro-fund led by 拉科斯特 (Lacoste) ??乔纳森 (Jonathan) , has reportedly closed a $20 million Fund II. The fund focuses on early-stage investments in frontier tech and operates on ultra-high conviction, targeting only 15-16 companies with check sizes between $500,000 and $1 million.
The firm invests in startups at the earliest stages, often when founders are just starting their companies. This strategy aligns with Space VC's focus on deeply technical fields and frontier tech. Lacoste acknowledges that sometimes larger firms outbid them, but he believes entrepreneurs have different paths to choose from, including raising smaller initial rounds to avoid early dilution.
Success stories from Space VC's portfolio, such as True Anomaly and Castelion , support Lacoste's strategy. Both companies raised small initial rounds and later secured larger rounds with major firms.
??Space VC Fundraising in 2024: A slow but steady rebound
Despite a difficult macro environment, the space venture capital (VC) sector continues to see capital inflows in 2024. While the overall VC fundraising landscape remains challenging , space-focused funds and those with significant space sector exposure continue to raise with many notable public announcements already in the year to date.
The continued fundraising efforts show steady investor interest in the burgeoning space industry, despite lingering economic headwinds. However, challenges remain around the industry’s image (not helped by the poor performance of Space SPACs) and inflated valuations from insider-led rounds. While a full rebound may not be imminent, experts agree the conditions are improving for a cautious recovery in space investment this year.
Looking for more insights on emerging space tech startups and supporting entities? The Space Impulse Market Intelligence Platform has captured data on the key companies, investors, universities and government organizations in the space tech industry.
Space Industry Quote of the Week ??
“The tech sector has always been plagued by startups run by engineers who want someone to just give them money so they can play with their technology toys. [...] And in the past, there were a lot of investors who really didn’t understand the fundamental business of the space sector and wanted to get into a company just because of the hype. That’s no longer going to work. Unless you already have a deep pocket of money, then you really have to focus on the business model.”
- Michael Mealling , general partner at Starbridge Venture Capital , discussing the current space tech investor landscape.
Weekly Space News Roundup ??
AST SpaceMobile ’s shares climbed up to 46% after Verizon Communications Inc. announced a $100 million investment in the satellite design and manufacturing company. AST’s stock peaked at $7.80 on the day the deal was announced. This follows a similar deal AST secured with AT&T only two weeks ago that positioned the Midland, Texas-based company to offer 100% coverage of the continental US through its future satellite system These recent partnerships signify a strategic move for Verizon and AT&T, who typically compete directly, as they now collaborate with AST to rival Elon Musk’s SpaceX.
President Yoon Suk Yeol declared South Korea’s ambition to achieve a Mars landing by 2045 while unveiling the Korea Aerospace Administration (KASA). The nation’s space industry will receive an investment of 100 trillion won, equivalent to $72.6 billion, channelled into space exploration. South Korea, which launched its Nuri rocket in May last year, becoming the seventh country with indigenous space launch vehicle and satellite technology, plans at least three more space launches by 2027 and intends to launch military satellites.
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Open Cosmos has signed a €60 million contract to deploy a seven-satellite Earth Observation Constellation to provide daily high-resolution and very-high-resolution imagery. The Hellenic Government aims to use this constellation to deliver economic and environmental benefits for Greece and Europe. The Greek constellation will operate in low Earth orbit with multisensor instruments including high-resolution optical cameras, IoT and AIS receivers, and on-board AI to maximize efficiency.
LambdaVision, Inc. has announced the first closing of its seed funding round led by MIT’s Aurelia Foundry Fund and including investment from Boryung and E2MC Ventures. LambdaVision’s artificial retina aims to restore vision for individuals who have lost sight due to RP and age-related macular degeneration (AMD). While preclinical studies occur on Earth, the company optimizes the retina’s assembly in low-Earth orbit where the microgravity conditions improve the production efficiency and quality of the artificial retina.
Pixxel plans to launch six satellites in 2024 using rockets from the Indian Space Research Organisation (ISRO) and SpaceX. Earlier this year, Pixxel opened MegaPixxel, a 30,000-square-foot facility in Bangalore with production capacity for up to 40 large satellites annually. MegaPixxel will handle all stages of satellite development, from concept to launch for a future constellation that will support a variety of industries.
SpaceX has announced June 5 as the date for its next Starship rocket flight. The mission will demonstrate the Super Heavy first stage’s ability to make a soft landing in the Gulf of Mexico and the Starship upper stage’s controlled reentry into the Indian Ocean. Since the last test in March, SpaceX has made hardware changes to improve propellant filtration and added more roll control thrusters for future flights.
The German Aerospace Agency (DLR) is one of the heavyweights among new projects that are concentrating on extending humankind’s exploration of the Moon and using Earth orbit sustainably. The DLR recently discussed some of these pioneering projects at the 39th Space Symposium with Dr. Anke Pagels-Kerp, Divisional Board Member for Space. A key focus is DLR’s newly inaugurated Lunar Analog Facility in Cologne.
Revolv Space has raised €2.6 million to advance the capabilities of small satellites. The funding round, led by Primo Ventures through the Primo Space Fund and joined by Takeoff, aims to accelerate the company's growth and bring its flagship product, SARA, the world’s first autonomous and fail-safe Solar Array Drive Assembly, to space. This investment will support the In-Orbit Demonstration of SARA and scale Revolv Space’s production capabilities to meet the growing industry demand for high-performance satellite components.
Thales Alenia Space , a joint venture between European aerospace giants Thales and Leonardo, has landed a €25 million contract with the European Space Agency. The contract entails developing a pioneering cargo delivery service to space stations orbiting our planet by 2028. The groundbreaking initiative will kick-off with an initial two-year phase starting in June 2024.
Aurora Avionics has secured ￡320,000 in funding from the Gabriel Investment Syndicate and Scottish Enterprise to enhance its position in Scotland’s growing space sector. The new funding will boost the development of their technology, which aims to revolutionize launch vehicle systems.
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