Seraphim Sees Returns of Growth Rounds in SpaceTech Funding

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Seraphim Sees Returns of Growth Rounds in SpaceTech Funding

SpaceTech investments in Q3 are on a recovery trajectory after the decline witnessed in H2 2022, according to a Q3 investment report published by Seraphim.

Although deal volume in Q3 was consistent with Q2, total investment grew by 39% ($1.6bn in Q3 vs $1.16bn in Q2). The quarter saw a significant shift towards late-stage businesses, accounting for 82% of investments, compared to 63% in Q2. This trend was notably influenced by large growth rounds in companies like Axiom Space, Sierra Space, and MapBox.

The resurgence of such growth rounds indicates increased investor confidence, which had waned during H2 2022’s economic instability. The ‘Beyond Earth’ sector attracted the most investments, largely driven by major deals with Axiom and Sierra Space. The focus on these revenue-generating businesses reflects investor optimism in the in-space economy and its future infrastructure.

The Beyond Earth (in-space infrastructure and services) sector focuses on the development and deployment of new technologies for space exploration and colonization. As we expand our reach into the cosmos, the Beyond Earth sector is paving the way for future infrastructure, e.g. in-space stations and satellite refuelling, to support long-term human presence and activities beyond our home planet.

SpaceTech M&A (Mergers and Acquisitions) activity reached record levels, with key deals including BAE Systems’ acquisition of Ball Aerospace and KKR’s offer with OHB. This heightened activity in growth rounds, M&A, and PE suggests the growing maturity of the NewSpace economy. Key figures from the report include:

  • $5.6bn invested over the past year (up from $9.2bn TTM to Q3 22).
  • $1.6bn investment in 2023.
  • The most significant deal in Q3 was Axiom at $350m (Series C led by Astranis ($200m).

Featured image: Credit: Seraphim Space