SERAPHIM SPACE INVESTMENT TRUST PLC
(the "Company" or "SSIT")

SpaceTech Sector Newsletter - April 2023

Seraphim Space Investment Trust plc (LSE: SSIT), the world's first listed SpaceTech investment company, publishes its monthly Reach newsletter to provide updates, based on publicly available information, on the Company's portfolio investments, its Manager (Seraphim Space Manager LLP (the "Manager" or "Seraphim Space")) and the wider SpaceTech market. The following newsletter covers April 2023. 

SSIT Portfolio Update

SpaceX successfully launched with 10 payloads from five SSIT portfolio companies

On 14 April, SpaceX launched to low-Earth orbit from Vandenberg Space Force base in California. This was SpaceX's seventh dedicated smallsat rideshare mission and had 51 payloads onboard, including 10 from leading SSIT portfolio companies Hawkeye 360 (three satellites), D-Orbit, Spire Global (three satellites), Tomorrow.io and Seraphim Space Accelerator graduate Sateliot. [link]

D-Orbit signed €26m contract with ESA

D-Orbit signed a €26m contract with the European Space Agency (ESA). This contract is for 'IRIDE', a space-based observation program initiated by the Italian government that will leverage national competencies and responsibility with the support of ESA. ESA, along with the Italian Space Agency under the framework of Italy's National Recovery and Resilience Plan, will manage the project.[link]

Satellite Vu's 'flying thermometer' pinpoints homes leaking most heat

It is only recently that the energy and climate crises have made people aware of just how expensive and inefficient older homes are due to heat loss. Around 29 million homes need an upgrade to their energy efficiency. The average house in the UK loses heat three times faster than a property in Germany. In order to address this global issue, Satellite Vu recently tested its infrared capability over Leeds in an aircraft fitted with its high-resolution thermal camera to identify buildings 'leaking' heat. It mapped an area of more than 115 square miles in just two hours to test the capability of its camera. Satellite Vu is now preparing to launch its satellite, hosting the infrared sensor payload, which has been shipped to the USA for the next SpaceX launch in June. Satellite Vu has grown a team to nearly 50 people and has millions in pre-orders of its infrared satellite imagery technology.[link]

Astroscale secured JPY 3 Billion loan agreement with Mizuho Bank

Astroscale Holdings Inc., the market leader in satellite servicing and long-term orbital sustainability across all orbits, has entered into a loan agreement of JPY 3 billion (approx. USD 22 million) with Mizuho Bank. This agreement will provide Astroscale with additional financial support beyond its recently closed $75m equity round for current and future projects, accelerating the company's business development efforts and allowing it to continue to grow and elevate.[link]

ICEYE announced release of Wildfire Insights

ICEYE, a world-leading provider of natural catastrophe solutions and insights, announced the Beta release of its Wildfire Insights product. It provides building-level impact data for a wildfire event in near real-time based on satellite imagery and a combination of advanced analytics and machine learning. The product captures data for any wildfire that impacts communities throughout the United States [link]

SpaceTech Sector News

Seraphim Space Q1 2023 Index [link]

Since 2018, Seraphim Space has published quarterly reports illuminating the trends for global private investment in the SpaceTech domain.

The first quarter in 2023 saw a bounce from lows in Q4 22, with private investment increasing by over 60% to $1.4bn. Key trends to draw include the relative strength of European investment activity, with transactions up by nearly 50% in the year to 31 March 2023 and a record breaking 42 transactions in the quarter, whilst European investment of $567m in Q1 was over half the total European investment for the whole of 2022. Indeed, Q1 marked the first ever occasion that European investment was higher than the US, which invested $456m in the quarter. Given momentum in Q1, 2023 looks set to become a record year for EU investment in the domain.

Q1 saw a strong pick-up in growth stage investment activity with a record number of B, C, and D+ rounds financed. Growth stage investment in Q1 of $971m rebounded against the lows in Q3 and Q4 2022. Evidence suggests that growth stage companies came back to market in Q1 after avoiding the uncertainty of late 2022, although they are raising smaller rounds, with average round size deals at $38m.

Early-stage transactions were also strong, closing 96 investment rounds and marginally beating the record transaction numbers achieved in Q4 2022, albeit in value terms Q1's $386m was shy of the $400m achieved in each of the previous three quarters.

There was an absence of any mega deals during Q1, with European launch company ISAR representing the largest round financed at $158m. European companies accounted for half the top 10 financings for the quarter.

Seraphim Space Accelerator and Generation Space Accelerator Launch Mission 11

The Accelerator's 11th cohort is the company's most geo-diverse yet, including the first startup dedicated to the African space economy to join the programme. Since 2018 the programme has helped 81 startups raise over $270m from 80 VCs, demonstrating the growth and innovation within the SpaceTech sector. The Accelerator's unique position at the epicentre of the New Space ecosystem continues to attract startups from all over the world - with this year's cohort being scouted from the top 2% of global SpaceTech startups. SpaceTech tartups continue to flourish despite a tough economic climate and there have been a number of success stories among the former participants in the Seraphim Space accelerator. [link]

SpaceX's New Rocket Starship Suffered Launch Failure

Starship is SpaceX's next generation launch vehicle. The fully reusable rocket stands nearly 400 feet tall and capable of delivering 150 tons to orbit.  This vehicle promises to herald a new era for low-cost access to space, further accelerating its commercialisation and providing regular access to the Moon and beyond.  Starship took off with an eruption of cheers, flew for a couple minutes, reached Max Q (the point in the launch sequence where the rocket experiences the maximum dynamic pressure), soared to an altitude of 39 km before a mid-flight explosion. Shortly after launch, SpaceX's telemetry showed that three of the engines had failed. SpaceX had predicted that the mega-rocket would likely fail to reach orbit stating the goal of the launch was to collect data to inform future launches and rocket modifications. SpaceX has stated it will conduct the next Starship test flight in eight weeks. [link]

Virgin Orbit filed for Chapter 11 bankruptcy.

The company retained about 100 employees to continue work on both the investigation and vehicle preparations after laying off about 675 people in late March, just before the Chapter 11 filing. The company announced on 19 April that it completed an investigation into the failure of its previous LauncherOne mission on 9 January. On that flight, the rocket's second stage engine shut down prematurely, preventing the stage and its payloads from reaching orbit. Virgin Orbit is now engaged with investors to determine the future of the business. [link]

SES is early talks about combining with Intelsat

Following years of industry speculation, the two companies confirmed merger discussion was underway. Plenty of operational synergies await SES and Intelsat if the world's largest fixed satellite service (FSS) providers can craft a merger able to clear regulatory scrutiny. [link]

Research

·    Edison published a research note on SSIT - "Long-term structural growth drivers remain intact". [link]

·    McKinsey published "Space: The missing element of your strategy" [link]

Media & Podcasts

·    SSIT featured in This Money. [link]

·    Seraphim Space CIO James Bruegger took part in the Future of SpaceTech Film with Deloitte. [link]

·    Seraphim Space CEO Mark Boggett took part in a live webinar with Augmentum Fintech and Molten on 'Venture Capital: Downside Protection and Portfolio Resilience' hosted by PrimaryBid. [link]

·    Mark Boggett joined CNBC's podcast 'Manifest Space' with Morgan Brennan - 'The Capital Comeback'. [link]

·    Seraphim Space Investment Analysts Trisha Saxena and Lucas Bishop recorded a video stream commenting on the Seraphim Space Ecosystem Map 2023. [link]

·    Seraphim Space Investment VP Maureen Haverty and Investment Analyst Trisha Saxena recorded a video stream commenting on The Seraphim Space Index Q1. [link]

·    Seraphim Space published episodes six, seven and eight of the Generation Space Podcast. [link]  

o  'ESG in SpaceTech', featuring Seraphim Space COO Sarah Shackleton and CIO James Bruegger.

o  'How to build a successful space company' featuring SSIT portfolio company Tomorrow.io and Seraphim Investment Principal Andre Ronsoehr.

o  'Finding and investing in the best space companies' featuring Seraphim Space Accelerator CEO Rob Desborough and Investment VP Maureen Haverty.

Conferences

·    Seraphim Space Partner and Chair of Advisory Board Candace Johnson gave a keynote speech on space for sustainability at the Global AIM 2023.

·    Seraphim Space CEO Mark Boggett spoke at the 38^th Space Symposium in Colorado Springs, USA.

·    Seraphim Space COO Sarah Shackleton spoke at the Real Deals Tech and Innovation Conference in London.

Neither the Company's website nor the content of any website accessible from hyperlinks in it or in this newsletter (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of, this newsletter.

- Ends -

Media Enquiries

Seraphim Space Manager LLP (via SEC Newgate)
Mark Boggett, CEO / James Bruegger, CIO / Rob Desborough           

SEC Newgate (Communications advisers)                                            [email protected] 
Emma Kane / Clotilde Gros / George Esmond                                                      +44 (0) 20 3757 6767

Deutsche Bank 
Mark Hankinson / Gavin Deane / Neil Coleman                                                    +44 (0) 20 7545 8000

J.P. Morgan Cazenove
William Simmonds / Jérémie Birnbaum / Rupert Budge                                       +44 (0) 20 7742 4000

Ocorian Administration (UK) Limited                                                   [email protected]
Lorna Zimny                                                                                                           +44 (0) 28 9078 5880

Notes to Editors:

About Seraphim Space Investment Trust plc

Seraphim Space Investment Trust plc (the "Company") is the world's first listed fund focused on SpaceTech. The Company seeks exposure predominantly to early and growth stage private financed SpaceTech businesses that have the potential to dominate globally and that are sector leaders with first mover advantages in areas such as climate, communications, mobility and cyber security.

The Company is listed on the Premium Segment of the London Stock Exchange.

Further information is available at:  https://investors.seraphim.vc

About Seraphim Space Manager LLP

Seraphim Space Manager LLP ("Seraphim" or the "Manager") is based in the UK and manages Seraphim Space Investment Trust plc.

Further information is available at:  www.seraphim.vc

About Seraphim Space Camp Accelerator Ltd

Seraphim Space Camp Accelerator Ltd, an affiliate of Seraphim Space Manager LLP based in the UK, established the Seraphim Space Accelerator in 2018 and has developed it to become the world-leading VC-led accelerator with a focus on SpaceTech. The accelerator programme brings in-depth industry expertise to get Seed and Pre-Series A SpaceTech companies "investment ready" while facilitating relationships with some of the world's leading Space corporates and agencies.

Further information is available at:  www.seraphim.vc

About Generation Space LLC

Generation Space LLC is the US subsidiary of Seraphim Space Manager LLP and is responsible for its US activities. Generation Space LLC is an affiliate of Seraphim Space Camp Accelerator Ltd and is responsible for delivery of the US Generation Space Accelerator.

Further information is available at: www.generation.space