SpaceTech: What does the future hold?
SpaceTech is one of the fastest growing areas of tech. This month our blog, alongside NatWest, explores the emergence of key SpaceTech players, important developments in the sector, and the future of space technology.
Space: The multi-billion dollar industry
By Rob Desborough, Portfolio Director at Seraphim Space Fund
Space is a multi-billion dollar industry and one of the fastest growing areas of tech investment with over $3bn being invested annually.
The sector’s profile has never been higher, thanks in no small part to Elon Musk reaching for Mars.
However, what really impacts those of us here on the ground is the largely hidden way in which data from satellites is really driving the lifeblood of the digital economy. Apps like Uber, Deliveroo, and City Mapper — that many of us rely on in our everyday lives — are all ultimately powered by such data.
With the democratization of space, the space sector will no longer be dominated by global superpowers and large multinational firms.
The cost of building and launching a satellite has fallen from more than $100 million to less than $1 million in recent years. What was once an area deemed to be too capitally inefficient, is now increasingly attractive to venture capital investors with this step change in economics. Now developing countries, start-ups and universities can join the ecosystem alongside the SpaceXs and NASAs of the industry.
Seraphim Capital is the world’s first SpaceTech venture fund, targeting leading entrepreneurs from around the world that are trying to use satellites and drones to change the world for the better.
The British government has also realised that the space market can play a key role in the UK. The UK Space Agency is working with industry to grow the UK’s share of the global space market from 6.5% to 10% by 2030. To achieve this, companies must be able to pursue new commercial opportunities from the UK, which offers an excellent location for space launch, with a world-leading small satellite industry, access to in-demand orbits, and reputation for regulatory excellence.
As the world’s only SpaceTech focused venture fund, we at Seraphim are fortunate to get to engage with some of the leading entrepreneurs from around the world to help disrupt the SpaceTech market.
The fundamental judgements for a space VC on whether a satellite or drone enabled business is interesting to them or not, are the very same as any other tech sector — put simply, is this product/service solving a significant problem for potential customers? What’s the evidence that someone needs and wants this product/service? Is this the right team to execute on the market opportunity?
One of the companies identified by Seraphim Capital that fits this criteria is portfolio company Spire, a satellite powered data company, which makes small ‘cube’ satellites at a rate of one per week, which are cheap enough to be replaced by a new and improved model every 2 years. Originally based in California, Spire has come to the UK and they have now set up a base in Glasgow. They have a constellation of circa 50 nano-satellites orbiting the earth at a speed of 17,000mph, with the aim being to have complete coverage of earth 24 hours a day. With their network they are monitoring global weather patterns and currently tracking 75,000 ships a day. Later this year they will also track flights when they are beyond land-based radar. The recent announcement that one of the two new UK space ports will be based in northern Scotland, will help hugely expand the work that Spire is able to achieve from the UK.
Seraphim Capital is hoping to help others follow in Spire’s footsteps with the firm belief that the next few years will see the emergence of a new generation of category-defining space companies. To support this mission Seraphim Capital have recently launched Seraphim Space Camp, the UK’s first accelerator programme dedicated to SpaceTech start-ups.
Space Camp’s aim is to help the best SpaceTech startups secure funding, achieve scale, and foster close working relationships with industry leaders. The programme has been supported and delivered by some of the largest technology corporates including: Rolls Royce, Airbus, Cyient, SES, Surrey Satellite, Telespazio, European Space Agency and UK Space Agency. Cohort #1 consisted of 6 start-ups providing services ranging from; from AgriTech to AI, robotics to earth observation, drones and even satellite propulsion, all of which we expect to see big things from in the future.
Space startups to highlight
1. QuadSAT
QuadSAT has developed brand new tools and techniques for testing and calibrating satellite antennas being deployed in high-value Maritime and Aeronautical markets, by combining the latest drone technology with a simulated satellite payload and mathematical algorithms.
2. Tesseract
Tesseract builds satellite propulsion systems that use non toxic propellants, have dramatically better performance, and lower cost than existing options.
They have redesigned thrusters for low toxicity fuels and modern manufacturing techniques such as 3D printing.
3. Earth Rover
Earth Rover is looking to address autonomous farming by developing farming robots based on the same technology originally developed for the ExoMars Rover. Selling precision farming-as-a-service, Earth Rover’s initial target market is the £1.7bn labour-intensive organic vegetable production market in Europe where it hopes to save farmers £1,500 per hectare p.a.
4. Global Surface Intelligence
Global Surface Intelligence (GSI) is one of a handful of companies around the world with access to a satellite database that effectively maps the changing behaviour of the world’s resources. GSI transforms the raw images from satellite, drone-based LiDAR and other data sets into advanced asset analytics, and builds contextual views of natural assets to quantify their performance, health, yield and value, making these natural assets more investable and better managed.
Reconfigure.io has developed a core platform allowing the acceleration of key compute demands with FPGA (field-programmable gate arrays) technology by, for the first time, making it readily accessible to engineers. It is therefore a key enabler for the mass adoption of FPGAs in the Space sector.
6. KisanHub
Founded in 2013, KisanHub uses big data analytics, cloud computing, and machine learning to compile data from satellite imagery, weather stations, soil sensors, and other sources. The platform offers yield predictions, pesticide application monitoring and other features for potato growing, which helps sellers manage contracts and supports farmers’ decision-making.
Using machine learning, planning and multi-agent technologies, Accelerated Dynamics is building a full-stack robot intelligence solution that is optimised for enterprise applications. They transform drones, autonomous cars, satellite systems, unmanned boats into IoT devices that do not require human operators.
8. Terrabotics
Terrabotics rapidly transform terabytes of satellite, aerial and UAV/drone imagery into very high precision true 3D terrain data and 2.5D digital elevation models. Rapid time-series analysis on these image and video sequences automatically detects & identifies environmental and man-made changes to the Earth’s surface.
Blue Skies Space Ltd aim to break the current bespoke, publicly-funded model for astronomy and astrophysics missions and employ a commercial approach to create new opportunities for cutting-edge science. Their vision is to enable cost-effective, quickly-delivered scientific instruments for users worldwide through a service-based model.
Startup Funding Club have just invested £570K into Blue Skies Space Ltd, alongside the London Co-Investment Fund and Angel Investors.
Articles of interest
UK’s first Space Camp Accelerator unveils its first 6 startups
As mentioned at the beginning of this blog, Seraphim Capital fund has launched the first UK space-tech accelerator, of which Capital Enterprise is a partner. With the cost of satellites decreasing, they have become much more appealing to start-ups and this accelerator will help further grow the industry.
A trillion-dollar space industry? Will it require new markets?
It has been forecast that the space industry will grow to a trillion dollars by the 2040’s. This article looks at whether the industry will require new markets to solicit this growth.
The UK is aiming to control 10% of the global market for space tech by 2030. This article looks at how the UK is a growing market for space tech startups.
Drive for UK spaceports and first commercial astronaut training programme
With the recent passing of the Space Industry Bill, this article looks at the UK’s drive for its first spaceport and the first commercial astronaut training programme in the world. It also looks at Capital Enterprise’s partner Seraphim Capital’s SpaceTech accelerator.
A look at other space tech startups transforming the field.
Events
The forum, on 15th November from 9:30am — 12:30pm, will be held at techUK and is aimed to help companies with an interest in space products and services improve export performance.
This industry-standard course programme presents a comprehensive overview of satellite communication technology and applications. For engineers, technicians, gov/mil technologists, graduates and marketing staff.
Thank you to Rob Desborough, Gracie Jones and Nathan McNally
