2024年Q2空间投资报告（英）-20正式版

Q22024SPACEIQSpaceInvestmentQuarterlyPrivatemarketequityinvestmentactivityandstartuptrendsinthespaceeconomy–fromtheinvestorsattheforefront$291.3BCumulativePrivateMarketEquityInvestmentsince20151,830UniqueCompanies$4.0BQ2Investment123Q2NumberofCompaniesReceivingInvestmentFrontcoverimage:AnimagetakenbyRussiancosmonautSergeyKorsakovfromOFT-2showstheBoeingStarlinerspacecraftapproachingtheInternationalSpaceStation,June7,2024.Photocredit:SergeyKorsakov/Roscosmos©SpaceCapital2024Q22024SpaceIQ|SpaceInvestmentQuarterlyVenturecapitalcontinuestobetheleadingsourceoffundingforspacecompaniesandatthecoreoftheslowdownisalackofliquidity-producingexits.Withstrongmacroeconomicindicatorsatthestartof2024,weexpectedseveralratecutsthisyeartospuraturnaround,whichhaveyettomaterialize.Infact,theFednowexpectstocutinterestratesjustoncein2024amidstubborninflation.This,combinedwithelectionuncertainty,isresultinginaprolongedmarketcorrection,adifficultfundraisingenvironment,andatepidexitenvironment.However,therearesignsthatinvestmentinthespaceeconomyisimproving.Followinglastyear’sdecade-lowininvestmentactivity(asinvestorsshiedawayfromrevenue-starvedLBS),thesituationin2024ismarkedlydifferent.ThereweremoredealsdoneinQ2thaninthepastninequarters.Andhalfwaythrough2024,investmentinspaceApplicationshasalreadysurpassedthefullyeartotalfor2023,indicatingthatwemaybethroughthetrough.Additionally,followinglastyear’srecord-highgrowth-stageinvestmentsinInfrastructure,thisquarterwasthefourth-highest.Incontrasttothebroaderventuremarket,thisyearisontracktologthehighestacquisitionactivityofthepastdecade,with38dealsYTD.However,thisconsolidationisgenerallytheresultofhardtimesandthevalueoftheseacquisitionsremainssubdued.AlthoughtheIPOmarkethasyettoopen,weareseeingsignsoflifewithstronginitialdemandforAstroscale’s(TYO:186A)listingandtheexpectedSierraSpaceIPO.Withstockmarketsclimbinghigherandimprovementsinprivatemarketvaluations,wemaystillseetheexitenvironmentimprovebyyear-end.Prediction:Governmentfundingwillcontinuetobeakeydriverofgrowth.Inthequestforrevenue,morecompaniesarechasinggovernmentdollars—andmoreinvestorsarewillingtofundthem.Forfurtherreading,we’vejustpublishedresearchontheinextricablelinkbetweendefensespendingandcommercialspaceintheUnitedStates.AtourSummit,wealsoexploredtheshiftingglobalpowerdynamicsandthegrowthoftheChinesespaceeconomy.ChinahasledYTDspaceInfrastructureinvestment,accountingfor37%ofgrowth-stageand63%ofearly-stagefunding,bothsurpassingtheU.S.Risinggeopoliticaltensions,particularlywithChina,continuetodriveincreasesinU.S.governmentfunding.Prediction:Afterrecordlaunchactivityin2023,expectcontinuedgrowthin2024drivenbySpaceX.Inthefirsthalfof2024,SpaceXhascontinuedtopushtheboundariesofwhatispossiblewith67launches,reflyingaboosterforarecord20thtime,andcompletingthefirstevercontrolledsoftlandingsofStarshipandSuperHeavy.WiththerapidadvancementoftheStarshiptestprogram,thespaceeconomyisonthevergeofamajornewphaseofdevelopment,yetmanyareunpreparedforthecomingchange.AtourSummit,weimaginednewmarketopportunitiesinaStarshipworld.Atthesametime,SpaceX’sdominancewillbechallengedbynearlyadozennewvehiclesthatareexpectedtocomeonlinethisyear.AtourrecentSpaceCapitalSummitwerevisitedourpredictionsfor2024andhowthey’veremainedontarget,despitemacromarketheadwinds.Thesecatalystsarekeytounderstandingthecontinuedgrowthofthespaceeconomyandbelowisasummaryofhowthesepredictionsareplayingout:Prediction:AIwillaccelerateinnovationinthespaceeconomyandenablecompaniestounlockthevalueofgeospatialdata.Prediction:SpaceTrafficManagementwillcontinuetobeakeyfocusareaintheyearahead.After12yearsofinvestinginthespaceeconomy,it’ssurrealtoseesomanyVCfirmsfeaturingSpace+AIattheirannualmeetingsthisyear.AtourSummit,wehostedaconversationonBig(Geospatial)Data&AI,whichexploredhowthePentagonismakinguseofAIwithspysatellitedata.Meanwhile,Planet(NYSE:PL)isleveragingsyntheticdatatosimulatesatelliteimageryandenablecustomerconversationsbeforeasatelliteisevenlaunched.Thecompanywillbeamongthefirsttospace-qualifyandflyanNVIDIAJetsonGPUonasatellitetoenableintelligentimagingandfasterinsightsforcustomers.Nearly9,000satellitesarealreadyinorbit,andby2030thisnumberwillincreasebyafactorof11x.Therapidgrowthofinternationalspaceinfrastructureissignificantlyincreasingtheriskofconjunctions(potentialcollisions)anddrivingstrongerdemandforspacesituationalawareness(SSA)dataandspacetrafficmanagement(STM)solutions.WithspaceassetsnowgrowingataratefasterthanMoore’sLaw,STMwillundoubtedlycontinuetobeakeyfocusarea.InanotherSummitconversation,wediscussedwhatisbeingdonetoprotectthiscriticalorbitalinfrastructure.®3InvestmentintheSpaceEconomyCUMULATIVEPRIVATEMARKETEQUITYINVESTMENTFROM2015TOPRESENTTOTALINVESTMENTBYGEOGRAPHY1%TOTALINVESTMENTBYINDUSTRY2%USAChinaSingaporeIndiaFranceUKSatellites$249.3B3%7%12%3%3%4%Launch$35.1B5%EmergingIndustries$7.0B46%IndonesiaCanadaOther128%86%TOTALINVESTMENTBYLAYER3%ANNUALINVESTMENTBYLAYERApplicationsDistributionInfrastructureNumberofRounds$50B$40B$30B$20B$10B27%60070%4002000InfrastructureDistributionApplications$204.9B$78.5B$8.0B2009SpaceXfirstsuccessfulcommerciallaunchSpaceXlandsorbitalbooster,ushersinreusabilityiPhone14equippedwithdirecttophoneSatCom20082014Uberreaches1Mdailyusersand250+citiesiPhone3GequippedwithGPSPlanetLabsimagesSpaceXlaunchescrewmission,ushersincommercialspaceflightserviceentireEarthdaily1978NAVSTARIGPSlaunched198420012005GoogleMapslaunchedFirstCommercialgpsOnesupportslaunchofGPSonmobiledevicesGPSReceivers1.“Other”consistsofcountrieseachrepresentinglessthan1%offunding.4YeartoDatePRIVATEMARKETEQUITYINVESTMENT$10.7B235NUMBEROFROUNDSEARLY-STAGEINVESTMENT2EARLY-STAGEROUNDS$2.0B155BYSTAGE•INVESTMENTAMOUNTBYSTAGE•ROUNDSHARE1%11%$3B$2B$1B$0SeedSeriesASeriesBSeriesCLateStageOther10%12%41%3425%SeedSeriesASeriesBSeriesCLateStage3Other4InQ2,investmentinthespaceeconomymaintaineditsstrongmomentum,totaling$4.0Bacross123companies.Late-stageandothercompaniesaretheprimarydriverwith$1.8B,accountingfor46%ofthetotal.Growth-stageinvestmentsfollowedcloselywith$1.7B,markingitthesecond-highestquartersinceQ2’21.Thetotalnumberofroundscontinuedtorebound,reaching123,thehighestsinceQ1’22.Thisisdrivenbyasurgeofgrowth-stageroundswitha70+%increaseinbothQoQandYoY.Early-stagedealactivityremainedstrong,makingup66%ofthetotalroundshare,slightlybelowitsten-yearaverageof69%.Late-stageandotherroundsalsoremainedelevated,suggestingagrowinginvestorconfidenceacrossallstages.BYLAYER•INVESTMENTAMOUNTANDDEALSBYQUARTERApplications130Distribution$6BInfrastructureNumberofRounds120$4BNUMBEROFROUNDSINQ2123110$2B$0InfrastructurecompaniesledinQ2with$2.1Bininvestments,maintainingtheirdominanceinfourofthepastfivequarters.Since2020,annualInfrastructureinvestmentshaveconsistentlyexceeded$10B,and2024isonpacetocontinuethattrend.$1.8BApplicationsinvestmentsinQ2hashelpedthelayersurpassits2023total.Despitethisuptickandimprovingmarketconditions,Applicationscompaniescontinuetofacefinancialchallengesnecessaryforexits.1002023Q22023Q32023Q42024Q12024Q22.Early-stageconsistsofPre-Seed,Seed,andSeriesArounds.3.Late-stageconsistsofSeriesD+andLiquidityRounds.4.Othersincludenon-traditionalinvestmentsliketake-privatetransactionsandself-capitalizationfromJeffBezos,ElonMusk,RichardBranson,andRobertBigelowwhoareclassifiedasIndividualinvestorsprovidinglargeinvestments(hundredsofmillions)intheirowncompaniesthroughunclassifiedrounds.5InfrastructureHardwareandsoftwaretobuild,launch,andoperatespace-basedassetsANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHY$20B$15B$10B$5B$0Other53002001002%Corporate6%USAVentureCapitalAngel/IndividualNumberofRounds5%ChinaFranceUK10%11%JapanOther166%Infrastructureinvestmentledduringthequarterwith$2.1Braised.VCinvestorsaccountedfor51%ofcapitaldeployedexceedingthe40%averagecontributionoverthepastdecade.Angel/Individualinvestorscontinuetoplayanoutsizedroleaccountingfor26%ofQ2fundingand21%since2015,drivenbyJeffBezos’financingofBlueOrigin.TheU.S.hasdominatedglobalInfrastructureinvestmentoverthepastdecade,securing66%oftotalcapital,withSpaceXandBlueOriginaccountingfor30%oftheU.S.total.ChinaisinsecondplaceandpoisedtoexpanditssharewithacceleratinginvestmentsandprogressinSmallLaunch,SatCom,andAdvancedManufacturingsectors.FrancetrailedatthirdafterovertakingtheUKwiththesuccessfulmergerofOneWebandEutelsat.CountriesinAsia,notablyIndia,Japan,andSouthKorea,haveallexperiencedanincreaseinearly-stageactivity.BYSECTOR6•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARE$40B$30B$20B$10B$04003002001000NumberofRoundsLaunchBrokerage1roundsSatellites981roundsEmergingIndustriesLaunch391roundsMoreonpg8-9Satelliteindustryinvestmentstotalled$36.4BoverthepastdecadeandhaveoutpacedLaunchforthefirsttime.Launchreceived$34.7Boverthesameperiod,withHeavyLaunchaccountingfor67%ofthistotal.Since2015,threetimesmoreSatellitescompanieshavereceivedinvestmentsthanLaunch,demonstratingashiftinfoundersbuildingspacecraftandtalentmovingtowardsadvancedsensingandconnectivity.Since2015,theSatellitesindustryhasseenthelargestamountofdealactivityrepresenting56%oftheInfrastructureroundshare.Zoomingin,themostactivesectorshavebeenSatelliteManufacturing,SmallLaunch,andGEOINT,generating61%ofdealsinthelastdecade.InQ2,thistrendcontinuedwiththeaforementionedsectorscontributingto67%ofthetotalrounds.5.“Other”includesFoundations,PrivateEquity,SovereignWealthFunds,MutualFunds,CrowdPlatforms.6.SeeUnpackingtheEmergingIndustries

blogpost6TOTALEQUITYINVESTMENTSINCE2015$78

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5BBYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•ANNUALROUNDSHARE100%Other4$30BLateStageSeriesCSeriesBSeriesASeed3$20B$10B$0B50%0%SeedSeriesASeriesBSeriesCLateStage3Other4Following2023’srecordyearforgrowth-stageInfrastructureinvestments,Q2sawcontinuedmomentumwith$1.1B,markingthefourth-highestquarterlyinvestmentin10years.ChinahasledYTDinvestmentwithcompaniesraisingacrossSatCom,Launch,andSatelliteManufacturingcompanies.Chinesecompaniesaccountedfor37%ofthegrowth-stagefundingand63%oftheearly-stagefunding,bothsurpassingtheU.S.Whileearly-stageinvestmentsrepresented72%ofallroundsinthepastdecade,theirsharedecreasedto61%ofQ2roundsand65%ofall2024.Thismayindicateareboundintheinvestmentlandscapeandasgrowthandlate-stagedealsbecomemorefrequent.Thisshiftmayalsobeattributedtoinvestorsfocusingonexistingportfoliocompaniesratherthanaddingnewinvestments,whichdecreasesthenumberofearly-stagerounds.TOPDEALSINTHEQUARTEREXITSBYINDUSTRYCOMPANYROUNDSelfCapitalizationSeriesCAMOUNT$500M$210M$140M$93M$84M$75M$70M$65M$60M$57MStationsSatellitesLunarLogisticsLaunchNumberofRoundsBlueOrigin$50B$40B$30B$20B$10B$03020100SpacePioneerMinoSpaceICEYESeriesCIndustrialsSeriesEPLDSpaceApexSeriesCSeriesBIsarAerospaceCesiumAstroX-BOWSeriesCSeriesBSeriesBPrivateerSpaceSeriesAThetop10dealsinQ2amountedto$1.4B,withtheLaunchindustryreceiving68%ofthetotalandSatellites28%.TheSmallLaunchsectorwasthemostactive,featuringonecompanyeachfromtheU.S.,China,Spain,andGermany.SatelliteManufacturingfollowedastheU.S.andChinaseektoacceleratemassproductioncapabilities.Thelistalsofeaturedsevengrowth-stagedeals,demonstratingsustainedfollow-oncapitalavailability.SpaceCapitalportfoliocompanyICEYEraised$93Mtolaunchupto15satellitesin2024.Q2saw$3.2BrealizedthroughsevenInfrastructureexits.ThiswasdrivenbytwoEmergingIndustriescompaniesthatmadeup77%ofthetotal,whilefivesatellitecompaniesaccountedfortheremainder.CadenceDesignSystemshasacquiredBETACADESystems,aproviderofmulti-domain,multi-physicssimulationsolutions.Anotherhigh-profiledealisSynopsys’pending$35BacquisitionofAnsys,theleaderinengineeringsimulation.Overthepastdecade,acquisitionshaveconstituted87%ofinfrastructureexitvalueand67%oftherounds.7EmergingIndustriesSubsetofInfrastructureexcludingLaunchandSatellitesindustriesANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHYOther51%1%$3B$2B$1B$0Corporate2%6%USAJapanItalySingaporeCanadaOtherVentureCapitalAngel/IndividualNumberofRounds60402013%177%18companiesacrosstheEmergingIndustriesraisedatotal$0.1BinQ2.VChasaccountedfor80%ofinvestmentsYTD.Since2015,$7.0Bhasbeeninvestedinthiscategoryacross153uniquecompanies.VCInvestorsaccountedfor47%ofcapitaldeployed,followedbyPrivateEquityat26%,andCorporateat17%.Notably,Angelinvestorsalsocontributedasignificantsharewith10%.U.S.companiesraisedthemajorityofcapitalat77%overthepastdecade.ThisisdrivenbySierraNevada’sspin-off,SierraSpace,ventureinvestmentsinAxiomSpace,ICON,Varda,TrueAnomaly,LeoLabsandself-capitalizationofVast.Japanaccountsfor13%withinvestmentsinAstroscale,iSpace,andGITAI.Italy,Singapore,Canada,GermanyfollowedwithnotableinvestmentsincludingD-Orbit,Qosmosys,NorthStarEarthandSpace,andTheExplorationCompany.BYSECTOR6•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARENumberofRounds6040200$4B$3B$2B$1B$0Lunar76roundsLogistics127roundsIndustrials80roundsStations107roundsStationsLogisticsLunarIndustrialsOverthepastdecade,Stationssecuredthemostfundingat$3.7B,followedbyLogisticsat$1.7B,Lunarat$1.0B,andIndustrialsat$0.6B.Zoomingin,theleadingsectorsincludeHabitats($3.3B),On-OrbitServicing($1.0B),Transport($0.5B),andManufacturingandAssembly($0.3B),respectively.ThecompanieswiththelargesttotalinvestmentsincludeAxiomSpaceandSierraSpaceinStations,AstroscaleandD-OrbitinLogistics,ICONandiSpaceinLunar,VardaSpaceandRedwire(NYS:RDW)inIndustrials.Logisticshasledroundactivitysince2019.ThistrendcontinuedinQ2,closing10outof18roundswithanearequalsplitofOnOrbitServicingandSSAcompanies.Thesectoralsoaccountedfor52%oftheYTDfunding.Furthermore,Logisticsmakesup33%ofthetotalroundshareoverthepastdecade,surpassingStationsat27%.ThisemphasizestheincreasinglycriticalroletheLogisticsindustryplaysincultivatingasustainableandvibrantspaceeconomy.8TOTALEQUITYINVESTMENTSINCE2015$7.0B

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$78.5BBYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE100%Other4LateStageSeriesCSeriesBSeriesASeed3$2B$1B$050%0%SeedSeriesASeriesBSeriesCLateStage3Other4Since2015,growth-stagefundinghasoutpacedearly-stageinvestment.However,thischangedinQ2withbothhavingraised$1.9B.Thismayindicateappetitefornewinnovationandgrowinginvestorconfidence.Late-stageinvestmenttotalling$2.6Bisheavilyconcentrated(69%)inasinglecompany,SierraSpace.While2023sawnearrecordinvestment,continuedgrowthwilldependonlargegovernmentcontractsandcommercialpartnershipstounlockmoresubstantial,later-stagerounds.Early-stageroundsaccountedfor94%oftotalinQ2and80%ofallroundssince2015.Incontrast,growth-stagerepresentedonly10%,andjust5%forlate-stage.Ahandfulofcompanies,includingSpaceCapitalportfoliocompaniesLeoLabsandImpulseSpace,havebeenabletogrowsignificantlywithacceleratingcommercialrevenuesaswellasgovernmentcontracts.Sustainedmomentumin2024willrequirestrongrevenuegrowthtodemonstrateviabilityofthesenascentmarkets.TOPDEALSINTHEQUARTEREXITSBYINDUSTRYCOMPANYROUNDSeriesASeriesASeriesASeriesASeedAMOUNT$57M$15M$13M$10M$5MStationsLunarLogisticsIndustrialsNumberofRoundsPrivateerSpace4321OriginSpaceInfiniteOrbitsPsionic$2B$1B$0VyomaStarsEdgeSeed$3MBlueSkiesSpaceSpaceQuartersBlackswanSpaceAstronetXSeed$3MSeed$1MSeed$1MSeed$1MSevenLogisticsinvestmentsdominatedQ2accountingfor75%ofthecapitalraised.ThiswasledbySSAcompanyPrivateerSpace,whichrecentlyraised$57MinSeriesAfinancingandacquiredEOanalyticsfirmOrbitalInsight.OriginSpace,thefirstChinesecompanydedicatedtotheutilizationofin-spaceresources,raiseda$15MSeriesAround.Interestingly,therearesevennon-UScompaniesonthelist,reflectinginternationalgrowthinthiscategory.EmergingIndustriescloseditslargestacquisitionduringthequarterwithIngersollRandacquiringspacesuitcompanyILCDoverfor$2.3B,markingthefirstexittransactioninthecategorytoexceed$1B.AstroscaledebutedontheTokyoStockExchange,becomingJapan’ssecondpubliclytradedInfrastructurecompanyafteriSpace.However,publiccompaniesinthiscategoryhavegenerallyunderperformed,strugglingwithconsistentfinancialmetricsduetothemarket’searlydevelopmentandhighCapEx.9DistributionHardwareandsoftwaretoconnect,process,andmanagedatafromspace-basedassetsANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHYOtherCorporate5VentureCapitalAngel/IndividualNumberofRounds1%2%$2.0B$1.5B$1.0B$0.5B$06040203%4%USAAustraliaChinaUKSouthKoreaIsrael8%10%60%CanadaOther112%DistributioninvestmentanddealactivitywereflatQoQwith$0.1Binvestedacross9rounds.Whiletotalfundingislessthanothertechlayers,innovationswithinDistributionhavereachedcriticalmilestonesandhelpmonetizetheInfrastructurebeingbuilt.AIadvancementsarerevolutionizinggeospatialdataprocessingandmapping,enablingreal-timeinsightsandSatComcompaniesareunlockingnewdirect-to-deviceandedgecomputingcapabilitiesandusecases.Overthepastdecade,U.S.companiesrepresent60%ofthetotalinvestment,followedbyAustraliaat12%,andChinaat10%.TheU.S.fundinglandscapeisdiversifiedbetweenGPS/GNSSandSatCom,whileAustraliaspecializesinGEOINTandChina’sinvestmentsleanpredominantlytowardsGNSS.Withincreasingneedforresilientubiquitouscommunicationsandreal-timespatialinsights,it’spossiblethattheU.S.andChinawillexperienceincreasedinvestmentsatthislayerofthestack.BYSECTOR•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARENumberofRounds806040200$4B$3B$2B$1B$0SatComGPSGEOINT22%40%38%GPSSatComGEOINTSatComhasledtheroundsharewith39%ofactivityinDistributionoverthepastdecade.RecenttrendsinSatCominvolveadvancementsthatenablesatelliteoperatorstoprocessdatamoreefficientlyandgainfasterinsights,utilizinginnovationsinmulti-orbitnetworkorchestration,in-spacedatacenters,andend-to-endconnectivitysolutions.GEOINTcontinueditsriseasthemostactivesectorinQ2,with86%ofroundssince2015beingearly-stage,highlightingitsemergingstateandtheneedtounlockgrowthpotential.Distributionhasseen$8.0Binvestedacross180companiesoverthepastdecade.Duringthattime,GPScompaniesattracted45%ofthetotalinvestment,withSatComaccountingfor38%.GEOINThasshownrapidgrowthconstituting56%ofdealactivityinQ2and55%ofinvestmentsYTD.Since2022,GEOINThasreceived38%oftotalfunding,significantlyhigherthanits10-yearaverageof18%.10TOTALEQUITYINVESTMENTSINCE2015$8.0BBYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE100%Other4LateStageSeriesCSeriesBSeriesASeed3$3B$2B$1B$050%0%SeedSeriesASeriesBSeriesCLateStage3Other4Early-stagefundinghasmaintainedmomentum,representing23%oftotalcapitaloverthepastdecade.Thelackoffollow-oninvestmentsinthegrowth-stageunderscoresthechallengesDistributioncompanieshavefacedwhenscaling.Technologyatthislayerisshiftingawayfromlargelyhardware-centricsolutionstodynamicsoftware-definedcapabilitiesthatbetterreflecttheevolvingneedsofendcustomersandrequirelesscapitaltogrow.Q2dealactivityincludedeightearly-stageandonegrowth-stageround.Since2015,early-stageactivityinDistributionhascomprised74%ofthetotalroundshare,ahigherproportionthantheothertwolayers.ThistrendisdrivenbyacontinuousriseinGEOINTrounds,asSatComremainedstableandGPSroundsdecreased.ThishighlightsthesustainedinvestorinterestforinnovationbreakthroughsinGEOINTtounlocknewendapplications.TOPDEALSINTHEQUARTEREXITSBYSECTORSatComGPSCOMPANYROUNDAMOUNTGEOINTNumberofRoundsKontakt.ioSeriesC$48M$4B$2B$0105ArchetypeAISofantTechnologiesSkynopySeedSeriesASeed$13M$4M$3M$2MQomodoSeedSatComandGEOINTdominatedQ2witheightroundsclosed,butthetopdealwenttoGPS.Kontakt.io,whichusesAI,IoT,andcloudtoprovidereal-timelocationdataandorchestratehealthcareoperations,raised$48MinSeriesCfinancing.ArchetypeAIemergedfromstealthwitha$13MSeriesSeedfinancingroundledbyVenrock,andintroducedNewton,afoundationmodelthatunderstandsthephysicalworldandhumanbehaviorleveragingmultimodaltemporaldata,includingsignalsfromalargevarietyofenvironmentalsensors.ThreeacquisitionsclosedinQ2,withoneineachofthethreesectors.Iridiummadeitsfirst-everacquisition,acquiringSatelles,aproviderofsecuresatellite-basedtimeandlocationservices.Since2015,90%ofallDistributionexitshavebeenthroughacquisitions,and98%ofthemoperatedintheSatComandGPSsectors.AlthoughGEOINTDistributioncompaniesareseenasstrategic,exemplifiedbyQualcomm’stwoacquisitionsin2024,thesecompanieshavechallengesreachingscaletogeneratelargeexits.11ApplicationsSpecializedhardwareandsoftwarethatutilizesdatafromspace-basedassetsANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHYOtherCorporate5VentureCapitalAngel/IndividualNumberofRounds1%1%1%2%7%$50B$40B$30B$20B$10B$0500250USAChinaSingaporeIndiaIndonesia4%5%6%38%UKCanadaColombiaEstoniaOther135%With$1.8BinQ2investment,Applicationsflowsdroppedby52%QoQandincreased167%YoY.DespitethisshiftbeingdrivenbythreemegaroundsledbyScaleAI,wehavealsoobservednumerousbridgeroundsfuelinggrowth-stageandlate-stagefunding.ThismayindicatethatApplicationscompaniesseemtohavemovedpasttheirfundingtrough.However,uncertaintyremainsasvaluationscontinuetoresetandcompaniesawaitfavorableconditionstogopublic.U.S.investmentsaccountfor38%oftheglobaltotalofApplications.Chinesecompaniesfollowcloselywith35%drivenbytheboominge-commerceandLBSmarkets.Singapore,India,andIndonesiahaveemergedasprominentgeographieswithcompaniesspecializinginLBS,mapping,smallvehiclemobility,aswellasenterprisesoftwareforsupplychainandlogisticsmanagement.TheUKrankslowerinApplicationscomparedtoothertechlayersbutstandsoutinautonomousmobilityandclimatesolutions.BYSECTOR•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARENumberofRounds2%$200BGPSGEOINTSatCom6004002000$150B$100B$50B$028%70%GPSGEOINTSatComGEOINTcontinueditsmomentumasthesecondhighestinvestmentsector,accountingfor73%ofQ2fundingandrecordingthefourthhighestquarterinthepastdecade.GPShasdominatedApplicationswith92%oftotalinvestmentsince2015,butchallenginguniteconomics,competition,andgrowth-at-any-costhavecausedinvestorinteresttowane.LBScompaniescontinuetoconsolidate,withregionalleadersseekingbest-basedfinancingalternatives.SatComApplicationsarepoisedforgrowthasdirect-to-deviceandedgetechnologiesgainmomentum.TheshareofGEOINTandSatComApplicationshasgraduallyrisen,representing30%ofroundsand8%oftotalfundingoverthepastdecade.Nearly77%oftheseroundsareearly-stagedrivinginnovation.AI-basedopen-sourcemodelsandtheproliferationofsatelliteconnectivityaresettotransformproductofferingsandcapabilitiesacrossglobalmarkets.GPSApplicationsholdthepotentialforfurthergrowthbutbreakthroughsincm-levelpositioningandseamlessindoor-outdoorcoverageareneeded.12TOTALEQUITYINVESTMENTSINCE2015$204.9BBYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE100%Other4$200B$150B$100B$50B$0LateStageSeriesCSeriesBSeriesASeed350%0%SeedSeriesASeriesBSeriesCLateStage3Other4Q2sawasurgeingrowth-stageinvestments,whichincreasedby112%QoQto$0.6B,markingthesecondhighestquartersinceQ1’22.Late-stageinvestmentsalsohitthehighestlevelinthepastsixquarters.Whileearly-stageinvestmentsraemainedsteadyandmega-roundshaveyettoreturnwithforce,thistrendmayindicaterenewedinvestorinterestasvaluationsadjusttohistoricalnorms.ThepercentageofSeedroundsoverthepastdecadehasdeclined,whileSeriesAhasincreased.Thismaybeasignthatinvestorsarereluctanttounderwriteveryearlystageriskandastrongerinclinationtowardsestablishedcompaniesthatdemonstratemoredefinedroutestoprofitability.Whilethenumberofroundsatallstagesremainedsuppress