Pdf download start-up space study 2016 tauri group

Another group of companies has announced investment, but not who the investors are. Figure 1. Excludes companies that have not announced investment, including many founded in the last few years.

A StartupWeekend for space in reflects increased interest in space start-ups. With participants across the two regions, the events attracted aspiring and current entrepreneurs from within and outside the space sector to create space start-ups.

Eleven teams in Bremen and seven in Shanghai were formed, supported by experienced mentors with technical, managerial, entrepreneurial, and policy backgrounds. The simultaneity of the events allowed the mentors to provide support to both locations, giving the teams developing their business ideas insights into a market in a separate region. Winning teams chosen by the panels were awarded prizes aimed at advancing their presented business concepts.

Six months later, six of the eleven Bremen teams are continuing their projects with one team incorporated and funded. Since the pilot events, StartupWeekend Space has gained grassroots traction in Europe and Asia with a follow-up event occurring in Gdansk, Poland in October and additional events being planned in both regions. Overview of Space Investors Types of Investor This analysis considers six categories of investor, to aid in understanding trends in investment and investor motivation.

This typology conceptually groups some investor types that could be treated separately but share characteristics, such as sovereign wealth funds included in private equity category and hedge funds included in the venture capital firm category.

While investor categories continue to shift and evolve, the typology here provides a useful and generally accepted broad brushstroke description of groups of investors and their typical investment behaviors. We describe each type of investor and typical 1 role as a funding source, including the stage of involvement, 2 preferred funding instrument e. For illustrative purposes, examples of select space deals are also provided. Angel Investors Typically, angel investors are individuals or families to include family offices that have accumulated a high level of wealth and seek potentially high returns by investing in ventures during their early stages.

Investment by angels into space ventures is usually in the form of straight equity into the company. There is a highly-visible special category of angel investor in the space ecosystem, consisting of billionaires and other ultra high net worth individuals who have personally staked new space companies.

The investment level by space billionaires far exceeds typical angel levels. By getting in at the ground floor i. Time horizons for angel investors are about 5 to 7 years, meaning they seek to realize their return i.

Angels may expect an equity stake in the company as high as 30 to 40 percent in return for their investment; however, frequently, angel stakes are much lower, especially after subsequent, larger investors join the capital structure. Upon exit, angels may expect to receive at least 5 to 10 times their investment.

Venture Capital Firms Venture capital VC firms are groups of investors that invest in start-up, early stage, and growth companies with high growth potential, and accept a significant degree of risk. The form of investment is equity; specifically, the instrument is usually preferred stock, which gives the VC firm an equity ownership stake in the investee company, but at a higher priority or preference than investors at common equity e.

Investment syndicates comprised of multiple VC firms may significantly increase these levels. An example of a space-based company receiving multi-stage VC investment is Skybox Imaging, a company founded in with the intention of building and launching small satellites in constellation form to provide frequent Earth imagery updates to customers around the globe.

Another example is Planet Labs, which reported five investment rounds at increasing valuations, as shown in Figure 2. Many investors participated in multiple rounds. Space-oriented VC funds are emerging from this class of investors. Angel and venture capital investment in Planet Labs. Based in London and focused mostly on UK-based companies, the fund represents an interest in space investments broadly defined, to extend to technologies developed for use in space and now being applied in other areas.

Russia and China launched a venture fund in , with space technology as one focus area reported by Fortune. Private Equity Private equity firms or groups are formed by investors to directly invest in companies.

They typically invest in established companies not start-ups at large transaction sizes, and often acquire an entire company or a group of related companies that can be merged. Examples of investors represented include many types of institutional investors e. The larger investment firms, which typically have multi-billion dollar investment funds from which to draw, have shown some interest in space over the past 15 years. Firms such as Blackstone, Columbia Capital, Permira, Apax, and Carlyle Group have historically shown an appetite for investing in space-based firms, typically in the telecom industry or government contracting.

Sometimes, they invest in the form of later stage capital i. This has been the case for several large commercial satellite operators. Being a start-up founded in , providing launch services sets it apart from earlier private equity deals in existing satellite communications companies.

Corporations Corporations have often provided the funding necessary to bring space-based programs to initial operating capability, as well as to sustain ongoing programs. A special category of internal investment typical of space firms for whom the U. A corporation may also provide funding for a venture, usually in the form of straight equity or sometimes in the form of debt, with the option to convert the instrument into equity of the investee company.

Some companies may also invest through a corporate venture fund, which acts as a company-owned VC equivalent. Note that DirecTV is not a start-up venture by our definition. This transaction is more typical of the merger and acquisition activity for established companies. Banks Banks have been heavily involved in providing funding for space-based programs of large, established firms such as GEO satellite operators during the past 15 years.

At certain trigger points, the debt can be converted, in whole or in part, into an equity stake in the financed company. Other companies financed e. In addition, government-backed banks i. Ex-Im Bank has provided multi-hundred million dollar debt financing over the past 3 years to satellite operators, including ViaSat of the U.

Banks are less likely to have a major role in providing financing start-up ventures. The IPO enables additional capital to be raised to supplement prior fundings and also provide previous investors an exit vehicle for their investments i. Many established space companies and government contractors have long since had their IPOs and continue to trade publicly. Secondary offerings post-IPO also serve to provide funds for capital expenditures and other corporate purposes e.

See Table 1. On December 4, , the Bank resumed activities with President Obama's signature on the reauthorization bill. Different types of investor pursue different types of investment objectives. This includes seed investment and a small amount of grants and prizes , venture capital, private equity, acquisitions, public offerings, and debt financing. Looking at investment only excluding debt financing , nearly two- thirds of investment in start-up space firms since has occurred in the last five years.

The vast majority has been venture capital. The mix of investment types including financing has evolved over the last 15 years.

Seed funding is evident in most years, though comparatively small compared to other investment types. Private equity and debt financing are prominent in the middle years of this timeframe, whereas acquisitions and venture capital become more pronounced in recent years. See Figure 3 for year-by-year investment. In addition, Table 3 shows investment by type in three periods, , , and , and Table 4 shows annual averages for each. The mix of types of investment in space companies varies over to However, the timing of the commitment is not public.

It may be spread more evenly over the year period, and based on company activity and employment appears to have been spent at a higher rate in recent years. Excluding the investment in Blue Origin in , seed funding has increased in each of the periods considered, with nearly half 43 percent in the to period.

In fact, venture capital in outstrips all venture capital to date by a factor of 1. Over 80 angel- and venture-backed space companies have been founded since ; eight of these companies have been acquired.

Investors in start-up ventures can see substantial returns if the start-up is acquired. Table 2 shows three companies that started and exited during the study timeframe. Note that in the Skybox transaction, the acquisition value was approximately 5. In the Climate Corporation example, it was 8.

Table 2. Investors in several space start-up ventures have seen substantial returns through acquisition. The annual average of space investments varies based on investment type and time period. These three investment types show an upward trend, while private equity is trending down. See Figure 4. Figure 4. Seed, venture funding and acquisitions are trending up, while PE and debt financing are trending down.

Space Investment by the Numbers 16 Valuation Substantial valuations can accompany substantial investment in space ventures. While valuations for all companies are not publicly available, there are some notable valuations. Two more space start-ups have been highlighted as potential unicorns. All investors are not always disclosed, so the actual number of investors is even higher.

Over the year time period, we looked at the distribution of investors across the five categories. Venture capital firms represent the largest number of investors in space companies, followed by angel investors. These two investor groups comprise two-thirds of the investors in space ventures.

Private equity firms, corporations, and banks debt financing make up the remaining third. See Figure 5. The number of investors has grown over the last 15 years. From to , the number of investors per year averaged 7, and from to , averaged From to partial year , the average is 55 investors. This is nearly an eight-fold increase from the first period to the third. Figure 6 shows the unique investors in each year. Figure 5.

By number of investors, VCs are the largest investor group for space start-ups. The average number of space investors per year has grown from 7 to Space Investors by the Numbers 18 The mix of investors changes from year to year, as shown in Figure 7.

The trend for each investor group is discussed in the sections below. Venture capital firms are prominent in almost every year. Angels are also pronounced, particularly in the second half of the period. Activity by private equity firms and corporations is notable throughout. The year was also an active year for corporations investing in space companies, particularly with the slew of international firms investing in OneWeb. There is very little activity in public markets as UrtheCast is the only company that goes public through a reverse IPO.

Banks typically providing debt financing appear prominently in and Figure 7. The mix of investors in space companies varies year to year. These investors make up 66 percent of the total. California is home to the majority of investors 81 , representing 30 percent of the total.

The other 95 investors or 36 percent are located elsewhere in the United States, with New York as a notable example. These 90 investors are in 25 countries, represented in 4 regions. The United Kingdom and Canada are each home to more than 10 investors in space companies, with the United Kingdom hosting about 20 percent of non-U.

Japan, Hong Kong, and Russian Federation are home to five or more space investors. Angel investors include individual angels and groups of angels. For example, Space Angels Network has over accredited angels. To be included in the data set, at least one angel has announced their investment.

Most angel investments are not made public, so the actual number of investors is higher. Jeff Bezos, Richard Branson, and Elon Musk are usually the first billionaires mentioned, but they are not the only ones. This represents about one percent of billionaires. See Table 5. Other notable individual angel investors are Dylan Taylor and Esther Dyson.

Two companies that included many individual investors are Astroscale 8 and Dauria Aerospace 6. Angel investors have found power in numbers and pool their resources. Space Angels Network has been particularly active with more than a dozen different transactions in the last 10 years.

Angels investing in space companies are primarily based in the United States. Angels based in the United States comprise 71 percent of the total. California is home to the majority of angels, representing 32 percent of the total. Seven countries are represented in three regions. Japan, Russian Federation, and United Kingdom are home to multiple angels investing in space companies, with the Japan hosting about a third of non-U.

Ross Perot Jr. Twenty-one billionaires have a notable space affiliation. Source: Forbes Billionaires From to , the average number of angel investors per year was 1. There was no angel activity publicly reported in , , and From to , the average was 3.

Starting in , the average number of angel investors per year jumped to 14—a five-fold increase over the previous five years. See Figure 8. Space Investors by the Numbers 22 Figure 8. Angel investor activ- ity increased in and con- tinues to today. NumberofInvestors Example deals noted. VC investor activity jumped in through today. Example deals noted.

VCs generally focus on start-ups and early stage ventures. We include incubators and accelerators in this investor group, since they provide funding as well as mentoring and networking. In , over 50 VCs invested in space companies. This is the highest number over the period and it represents a partial year. See Figure 7. We include Fidelity Investments in this investor group, since they provide venture capital to high-tech companies and, in particular, invested in SpaceX even though traditionally it runs mutual funds that focus on public company equity and debt.

The number of VC firms investing in space companies has jumped significantly since From to , the average number of VCs per year is 3. Over the next five years, the average is 8. From through a partial , the average is This is nearly a three-fold increase over the last ten years.

See Figure 9. The Tauri Group talked to VCs involved with the largest deals in We also spoke to many others through research interactions and related discussions. VCs with headquarters in the United States make up 74 percent of the total. The plurality of VCs are based in California, representing 39 percent of the total. The other 35 percent are located elsewhere in the United States, with New York and Maryland as notable examples.

The international investors have headquarters across the globe. Fifteen countries are represented in four regions. VC firms. See Figure VCs headquartered outside the U. Draper Fisher Jurvetson and Founders Fund have each invested in five companies; the rest invested in three. A couple of these firms indicate that they have a space specialization in their portfolio.

A handful of VCs have repeatedly invested in common with other investors. The relationships are diagramed in Figure VCs investing in multiple space companies Figure Common investments among VCs The number of PE firms investing in space companies has varied over the time period, but the average is constant at 2.

LightSquared and O3b transactions dominate in , , , and Private equity investor activity is variable over the time period. Firms with headquarters in the United States make up 44 percent of the total. The majority of U. The other 20 percent are located elsewhere in the United States. Space Investors by the Numbers 30 U. Private equity firms reported to be in space start-ups are distributed between U.

Eight countries are represented in four regions. United Kingdom, Israel, and Canada are home to multiple private equity firms investing in space companies, with the U. PE firms. The number of corporations investing in space ventures rose steadily since We include corporate venture funds in this investor group. From to , the average number of investors per year is 1, and from to , the average is 3. From through a partial , the average is 7.

This number more than doubled. Corporations investing in space ventures picked up starting in Space Investors by the Numbers 32 Corporations investing in space ventures are split between the United States and elsewhere across the world. Firms with headquarters in the United States make up 56 percent of the total. The other 26 percent are located elsewhere in the United States, with New York as a notable example.

Both traditionally space companies and non-space companies are investing in new space ventures. Existing space corporations represent 47 percent of this investor group, while non-space corporations represent 53 percent.

Existing space corporations that are headquartered in the U. Non-space corporations that are headquartered in the U. See Figure 16 for the distribution between U. Space U. Space Non-U. Non-Space Non-U. Corporations investing in space ventures are more likely to be headquartered in the U. Nine countries are represented in four regions.

Canada and United Kingdom are home to three or more corporations investing in space ventures. China, Luxembourg, and Netherlands each have two companies that have reported investing in space ventures. Corporations have invested in over 20 space ventures since ; about a third of the investments were acquisitions Arabia Weather BlackBridge Corp. Space Investors by the Numbers 34 Banks and Other Financial Institutions Relatively few—about 1 in 10—of the transactions covered in this analysis have reported debt financing as a significant component.

Who is involved in space investing, and how has that changed over time? What are their motivations? What is the vision they have for the future of the industry?

How do they perceive the industry to have changed over the previous 10 years? What metrics do they seek in a company in which they invest? The perspective of investors significantly enhances the analysis of the investment deals described in the previous section. Investor behavior is the key to understanding why space investments are trending up and what we might see in the future.

This analysis targets the investment community behind start-up space ventures—the sources over the last few years of billions of dollars to fund dozens of new, entrepreneurial space firms. We talked to venture capitalists, mostly senior partners, at some of the most successful firms in Silicon Valley, as well as angel investors, entrepreneurs, investment bankers, venture attorneys, and international investors.

We interviewed investors in the largest recent space deals and investors in firms that have invested in multiple space deals. We also interviewed investors in leading firms that have chosen not to invest in space. Here is what they said. The State of Investment in Start-Up Space The investors we interviewed agreed that space investment activity has significantly increased.

Three years ago, that number was 1 percent. The timeline from design to operations has also shortened significantly, which means investors can potentially expect to see returns on their investment more quickly.

Investor Motivations Decreased costs make venture investing feasible for space. A StartupWeekend for space in reflects increased interest in space start-ups. With participants across the two regions, the events attracted aspiring and current entrepreneurs from within and outside the space sector to create space start-ups.

Eleven teams in Bremen and seven in Shanghai were formed, supported by experienced mentors with technical, managerial, entrepreneurial, and policy backgrounds. The simultaneity of the events allowed the mentors to provide support to both locations, giving the teams developing their business ideas insights into a market in a separate region. Winning teams chosen by the panels were awarded prizes aimed at advancing their presented business concepts.

Six months later, six of the eleven Bremen teams are continuing their projects with one team incorporated and funded. Since the pilot events, StartupWeekend Space has gained grassroots traction in Europe and Asia with a follow-up event occurring in Gdansk, Poland in October and additional events being planned in both regions. This typology conceptually groups some investor types that could be treated separately but share characteristics, such as sovereign wealth funds included in private equity category and hedge funds included in the venture capital firm category.

While investor categories continue to shift and evolve, the typology here provides a useful and generally accepted broad brushstroke description of groups of investors and their typical investment behaviors. We describe each type of investor and typical 1 role as a funding source, including the stage of involvement, 2 preferred funding instrument e.

For illustrative purposes, examples of select space deals are also provided. Angel Investors Typically, angel investors are individuals or families to include family offices that have accumulated a high level of wealth and seek potentially high returns by investing in ventures during their early stages.

Investment by angels into space ventures is usually in the form of straight equity into the company. There is a highly-visible special category of angel investor in the space ecosystem, consisting of billionaires and other ultra high net worth individuals who have personally staked new space companies.

The investment level by space billionaires far exceeds typical angel levels. By getting in at the ground floor i. Time horizons for angel investors are about 5 to 7 years, meaning they seek to realize their return i. Angels may expect an equity stake in the company as high as 30 to 40 percent in return for their investment; however, frequently, angel stakes are much lower, especially after subsequent, larger investors join the capital structure.

Upon exit, angels may expect to receive at least 5 to 10 times their investment. Venture Capital Firms 6 Venture capital VC firms are groups of investors that invest in start-up, early stage, and growth companies with high growth potential, and accept a significant degree of risk.

The trade of risk for potential high returns results in a high failure rate; a recent research study by a Harvard Business School faculty member finds that, About three-quarters of venture-backed firms in the U.

The form of investment is equity; specifically, the instrument is usually preferred stock, which gives the VC firm an equity ownership stake in the investee company, but at a higher priority or preference than investors at common equity e. The preferred shares are usually convertible to common stock in the instance of an IPO see Public Markets or sale of the company, which are the typical instances of a VC s exit.

Investment syndicates comprised of multiple VC firms may significantly increase these levels. Note that the distinct series model for VC investments is evolving with more continuous investment by an ongoing team of investors emerging as a trend. The Figure 2. Angel and venture capital investment in Planet Labs. Another example is Planet Labs, which reported five investment rounds at increasing valuations, as shown in Figure 2.

Many investors participated in multiple rounds. Based in London and focused mostly on UK-based companies, the fund represents an interest in space investments broadly defined, to extend to technologies developed for use in space and now being applied in other areas. They note their investment in Skybox Imaging was just the beginning. Rocket Lab and Spire Global are also part of their portfolio.

Russia and China launched a venture fund in , with space technology as one focus area reported by Fortune. Private Equity Private equity firms or groups are formed by investors to directly invest in companies. They typically invest in established companies not start-ups at large transaction sizes, and often acquire an entire company or a group of related companies that can be merged. Examples of investors represented include many types of institutional investors e.

The larger investment firms, which typically have multi-billion dollar investment funds from which to draw, have shown some interest in space over the past 15 years. Firms such as Blackstone, Columbia Capital, Permira, Apax, and Carlyle Group have historically shown an appetite for investing in space-based firms, typically in the telecom industry or government contracting.

Sometimes, they invest in the form of later stage capital i. This has been the case for several large commercial satellite operators. Being a start-up founded in , providing launch services sets it apart from earlier private equity deals in existing satellite communications companies. Corporations 8 Corporations have often provided the funding necessary to bring space-based programs to initial operating capability, as well as to sustain ongoing programs.

A special category of internal investment typical of space firms for whom the U. A corporation may also provide funding for a venture, usually in the form of straight equity or sometimes in the form of debt, with the option to convert the instrument into equity of the investee company.

Some companies may also invest through a corporate venture fund, which acts as a company-owned VC equivalent. Corporations also acquire firms. Note that DirecTV is not a start-up venture by our definition. This transaction is more typical of the merger and acquisition activity for established companies.

Banks Banks have been heavily involved in providing funding for space-based programs of large, established firms such as GEO satellite operators during the past 15 years. The basic model is that equity investors provide a substantial cushion, e. The remainder of CapEx or other types of programmatic expenditure is financed by debt, sometimes in the form of convertible debt, meaning that the initial instrument is in the form of debt.

At certain trigger points, the debt can be converted, in whole or in part, into an equity stake in the financed company. Other companies financed e.

In addition, government-backed banks i. Ex-Im Bank has provided multi-hundred million dollar debt financing over the past 3 years to satellite operators, including ViaSat of the U. Banks are less likely to have a major role in providing financing start-up ventures. These institutions will usually take the role of lead managers of a financing transaction, often with several fulfilling that position e.

Public Markets Toward the later stages of a space-based company s funding trajectory, there can be a public sale of the company s equity common stock , or IPO. The IPO enables additional capital to be raised to supplement prior fundings and also provide previous investors an exit vehicle for their investments i.

Many established space companies and government contractors have long since had their IPOs and continue to trade publicly. Secondary offerings post-ipo also serve to provide funds for capital expenditures and other corporate purposes e. Different types of investor pursue different types of investment objectives.

This includes seed investment and a small amount of grants and prizes , venture capital, private equity, acquisitions, public offerings, and debt financing.

Looking at investment only excluding debt financing , nearly twothirds of investment in start-up space firms since has occurred in the last five years. The vast majority has been venture capital. The mix of investment types including financing has evolved over the last 15 years. Seed funding is evident in most years, though comparatively small compared to other investment types.

Private equity and debt financing are prominent in the middle years of this timeframe, whereas acquisitions and venture capital become more pronounced in recent years. See Figure 3 for year-by-year investment. In addition, Table 3 shows investment by type in three periods, , , and , and Table 4 shows annual averages for each. The mix of types of investment in space companies varies over to.

However, the timing of the commitment is not public. It may be spread more evenly over the year period, and based on company activity and employment appears to have been spent at a higher rate in recent years. Excluding the investment in Blue Origin in , seed funding has increased in each of the periods considered, with nearly half 43 percent in the to period. In fact, venture capital in outstrips all venture capital to date by a factor of 1. Over 80 angel- and venture-backed space companies have been founded since ; eight of these companies have been acquired.

Table 2 shows three companies that started and exited during the study timeframe. Note that in the Skybox transaction, the acquisition value was approximately 5. In the Climate Corporation example, it was 8. Investors in several space start-up ventures have seen substantial returns through acquisition. The annual average of space investments varies based on investment type and time period.

These three investment types show an upward trend, while private equity is trending down. See Figure 4. Seed, venture funding and acquisitions are trending up, while PE and debt financing are trending down. While valuations for all companies are not publicly available, there are some notable valuations. All investors are not always disclosed, so the actual number of investors is even higher. Over the year time period, we looked at Private the distribution of investors across the five Equity categories.

Venture capital firms represent the largest number of investors in space companies, followed by angel investors. These two investor groups comprise two-thirds of the investors in space ventures. Private Venture Capital equity firms, corporations, and banks debt Firms financing make up the remaining third. There is small participation by a few altruists, who have provided grants or prizes, such as Thiel Figure 5. By number of investors, VCs are the largest investor group for space start-ups.

See Figure 5. From to , the number of investors per year averaged 7, and from to , averaged From to partial year , the average is 55 investors.

This is nearly an eight-fold increase from the first period to the third. Figure 6 shows the unique investors in each year. The average number of space investors per year has grown from 7 to. The trend for each investor group is discussed in the sections below. Venture capital firms are prominent in almost every year.

Angels are also pronounced, particularly in the second half of the period. Activity by private equity firms and corporations is notable throughout. The year was also an active year for corporations investing in space companies, particularly with the slew of international firms investing in OneWeb. There is very little activity in public markets as UrtheCast is the only company that goes public through a reverse IPO. The mix of investors in space companies varies year to year. Investors in space companies are primarily based in the United States.

These investors make up 66 percent of the total. California is home to the majority of investors 81 , representing 30 percent of the total. The other 95 investors or 36 percent are located elsewhere in the United States, with New York as a notable example. These 90 investors are in 25 countries, represented in 4 regions. The United Kingdom and Canada are each home to more than 10 investors in space companies, with the United Kingdom hosting about 20 percent of non-u.

Japan, Hong Kong, and Russian Federation are home to five or more space investors. Angel investors include individual angels and groups of angels. For example, Space Angels Network has over accredited angels. To be included in the data set, at least one angel has announced their investment.

Most angel investments are not made public, so the actual number of investors is higher. The most prominent angel investors are space billionaires. These billionaires have accrued their wealth through other successful businesses or investments and have either founded a space company or invested their own money in a space company.

Jeff Bezos, Richard Branson, and Elon Musk are usually the first billionaires mentioned, but they are not the only ones. Of the 1, people on Forbes Billionaires List, 21 have an affiliation to a space enterprise. This represents about one percent of billionaires. See Table 5. Other notable individual angel investors are Dylan Taylor and Esther Dyson.

One has been involved with 6 different space start-ups, while the other has been involved Ross Perot Jr. Twenty-one billionaires have a notable space affiliation. Two companies that included many individual investors are Astroscale 8 and Dauria Aerospace 6. Angel investors have found power in numbers and pool their resources. Space Angels Network has been particularly active with more than a dozen different transactions in the last 10 years. Angels investing in space companies are primarily based in the United States.

Angels based in the United States comprise 71 percent of the total. California is home to the majority of angels, representing 32 percent of the total. Seven countries are represented in three regions. Japan, Russian Federation, and United Kingdom are home to multiple angels investing in space companies, with the Japan hosting about a third of non-u. From to , the average number of angel investors per year was 1.

There was no angel activity publicly reported in , , and From to , the average was 3. Starting in , the average number of angel investors per year jumped to 14 a five-fold increase over the previous five years.

See Figure 8. Angel investor activity increased in and continues to today. Average 14 Example deals noted. VCs generally focus on start-ups and early stage ventures. We include incubators and accelerators in this investor group, since they provide funding as well as mentoring and networking. In , over 50 VCs invested in space companies.

This is the highest number over the period and it represents a partial year. See Figure 7. We include Fidelity Investments in this investor group, since they provide venture capital to high-tech companies and, in particular, invested in SpaceX even though traditionally it runs mutual funds that focus on public company equity and debt.

The number of VC firms investing in space companies has jumped significantly since From to , the average number of VCs per year is 3. Over the next five years, the average is 8. From through a partial , the average is This is nearly a three-fold increase over the last ten years.

See Figure 9. The Tauri Group talked to VCs involved with the largest deals in We also spoke to many others through research interactions and related discussions. VC investor activity jumped in through today.

VCs with Examples of headquarters in the United States make up 74 percent of the total. The plurality Incubators of VCs are based in California, representing 39 percent of the total. The international investors have headquarters across the globe. Fifteen countries are represented in four regions. VC firms. See Figure VCs headquartered outside the U. Draper Fisher Jurvetson and Founders Fund have each invested in five companies; the rest invested in three.

A couple of these firms indicate that they have a space specialization in their portfolio. A handful of VCs have repeatedly invested in common with other investors. The relationships are diagramed in Figure. VCs investing in multiple space companies The number of PE firms investing in space companies has varied over the time period, but the average is constant at 2. LightSquared and O3b transactions dominate in , , , and See Figure Number of Investors LightSquared Figure Private equity investor activity is variable over the time period.

Firms with headquarters in the United States make up 44 percent of the total. The majority of U. The other 20 percent are located elsewhere in the United States. See Figure. Venture capital is money provided by an outside investor to finance a new, growing, or troubled business.

The venture capitalist provides the funding knowing.