2024年Q2空间投资报告（英）-20正式版

Q22024

SPACEIQ

SpaceInvestment

Quarterly

Privatemarketequityinvestmentactivityandstartuptrendsin

thespaceeconomy–fromtheinvestorsattheforefront

$291.3B

CumulativePrivateMarket

EquityInvestmentsince2015

1,830UniqueCompanies

$4.0B

Q2Investment

123

Q2NumberofCompanies

ReceivingInvestment

Frontcoverimage:AnimagetakenbyRussiancosmonautSergey

KorsakovfromOFT-2showstheBoeingStarlinerspacecraft

approachingtheInternationalSpaceStation,June7,2024.

Photocredit:SergeyKorsakov/Roscosmos

©SpaceCapital2024

Q22024

SpaceIQ|SpaceInvestmentQuarterly

Venturecapitalcontinuestobetheleadingsourceoffundingforspacecompaniesandatthecoreoftheslowdownisalackofliquidity-

producingexits.Withstrongmacroeconomicindicatorsatthestartof2024,weexpectedseveralratecutsthisyeartospuraturnaround,

whichhaveyettomaterialize.Infact,theFednowexpectstocutinterestratesjustoncein2024amidstubborninflation.This,combined

withelectionuncertainty,isresultinginaprolongedmarketcorrection,adifficultfundraisingenvironment,andatepidexitenvironment.

However,therearesignsthatinvestmentinthespace

economyisimproving.Followinglastyear’sdecade-lowin

investmentactivity(asinvestorsshiedawayfromrevenue-

starvedLBS),thesituationin2024ismarkedlydifferent.

ThereweremoredealsdoneinQ2thaninthepastnine

quarters.Andhalfwaythrough2024,investmentinspace

Applicationshasalreadysurpassedthefullyeartotalfor2023,

indicatingthatwemaybethroughthetrough.Additionally,

followinglastyear’srecord-highgrowth-stageinvestmentsin

Infrastructure,thisquarterwasthefourth-highest.Incontrast

tothebroaderventuremarket,thisyearisontracktologthe

highestacquisitionactivityofthepastdecade,with38deals

YTD.However,thisconsolidationisgenerallytheresultofhard

timesandthevalueoftheseacquisitionsremainssubdued.

AlthoughtheIPOmarkethasyettoopen,weareseeingsigns

oflifewithstronginitialdemandforAstroscale’s(TYO:186A)

listingandtheexpectedSierraSpaceIPO.Withstockmarkets

climbinghigherandimprovementsinprivatemarket

valuations,wemaystillseetheexitenvironmentimproveby

year-end.

AtourrecentSpaceCapitalSummitwerevisitedour

predictionsfor2024andhowthey’veremainedontarget,

despitemacromarketheadwinds.Thesecatalystsarekeyto

understandingthecontinuedgrowthofthespaceeconomy

andbelowisasummaryofhowthesepredictionsare

playingout:

Prediction:Governmentfundingwillcontinuetobeakey

driverofgrowth.

Inthequestforrevenue,morecompaniesarechasing

governmentdollars—andmoreinvestorsarewillingtofund

them.Forfurtherreading,we’vejustpublishedresearch

ontheinextricablelinkbetweendefensespendingand

commercialspaceintheUnitedStates.AtourSummit,wealso

exploredtheshiftingglobalpowerdynamicsandthegrowth

oftheChinesespaceeconomy.ChinahasledYTDspace

Infrastructureinvestment,accountingfor37%ofgrowth-stage

and63%ofearly-stagefunding,bothsurpassingtheU.S.Rising

geopoliticaltensions,particularlywithChina,continuetodrive

increasesinU.S.governmentfunding.

Prediction:Afterrecordlaunchactivityin2023,expect

continuedgrowthin2024drivenbySpaceX.

Inthefirsthalfof2024,SpaceXhascontinuedtopushthe

boundariesofwhatispossiblewith67launches,reflying

aboosterforarecord20thtime,andcompletingthefirst

evercontrolledsoftlandingsofStarshipandSuperHeavy.

WiththerapidadvancementoftheStarshiptestprogram,

thespaceeconomyisonthevergeofamajornewphaseof

development,yetmanyareunpreparedforthecomingchange.

AtourSummit,weimaginednewmarketopportunitiesina

Starshipworld.Atthesametime,SpaceX’sdominancewillbe

challengedbynearlyadozennewvehiclesthatareexpectedto

comeonlinethisyear.

Prediction:AIwillaccelerateinnovationinthespace

economyandenablecompaniestounlockthevalueof

geospatialdata.

Prediction:SpaceTrafficManagementwillcontinuetobea

keyfocusareaintheyearahead.

After12yearsofinvestinginthespaceeconomy,it’ssurreal

toseesomanyVCfirmsfeaturingSpace+AIattheir

annualmeetingsthisyear.AtourSummit,wehosteda

conversationonBig(Geospatial)Data&AI,whichexplored

howthePentagonismakinguseofAIwithspysatellitedata.

Meanwhile,Planet(NYSE:PL)isleveragingsyntheticdatato

simulatesatelliteimageryandenablecustomerconversations

beforeasatelliteisevenlaunched.Thecompanywillbeamong

thefirsttospace-qualifyandflyanNVIDIAJetsonGPUona

satellitetoenableintelligentimagingandfasterinsightsfor

customers.

Nearly9,000satellitesarealreadyinorbit,andby2030this

numberwillincreasebyafactorof11x.Therapidgrowthof

internationalspaceinfrastructureissignificantlyincreasing

theriskofconjunctions(potentialcollisions)anddriving

strongerdemandforspacesituationalawareness(SSA)data

andspacetrafficmanagement(STM)solutions.Withspace

assetsnowgrowingataratefasterthanMoore’sLaw,STM

willundoubtedlycontinuetobeakeyfocusarea.Inanother

Summitconversation,wediscussedwhatisbeingdoneto

protectthiscriticalorbitalinfrastructure.

®

3

InvestmentintheSpaceEconomy

CUMULATIVEPRIVATEMARKETEQUITYINVESTMENTFROM2015TOPRESENT

TOTALINVESTMENTBYGEOGRAPHYTOTALINVESTMENTBYINDUSTRY

2%

1%

USASatellites

3%

7%

China12%$249.3B

3%

Singapore

Launch

3%

India

$35.1B

4%

France

5%UKEmergingIndustries

46%

Indonesia

Canada

Other1

$7.0B

28%

86%

TOTALINVESTMENTBYLAYERANNUALINVESTMENTBYLAYER

3%

$50B

Applications

Distribution

Infrastructure

NumberofRounds

27%

$40B

600

$30B

70%

400

$20B

InfrastructureDistribution

$78.5B$8.0B

Applications

$204.9B

$10B

200

0

2009

SpaceXfirstsuccessful

commerciallaunch

2008

iPhone3Gequipped

withGPS

2014

Uberreaches1Mdaily

usersand250+cities

1978

1984

FirstCommercial

GPSReceivers

2001

gpsOnesupports

launchofGPSon

mobiledevices

NAVSTARIGPS

launched

SpaceX

landsorbital

booster,

ushersin

reusability

2005

GoogleMaps

launched

PlanetLabs

images

entire

Earthdaily

SpaceX

launchescrew

mission,ushers

incommercial

spaceflight

iPhone14

equipped

withdirect

tophone

SatCom

service

1.“Other”consistsofcountrieseachrepresentinglessthan1%offunding.

4

YeartoDate

PRIVATEMARKETEQUITYINVESTMENT

$10.7B235$2.0B155

NUMBEROFROUNDSEARLY-STAGEINVESTMENT2EARLY-STAGEROUNDS

BYSTAGE•INVESTMENTAMOUNTBYSTAGE•ROUNDSHARE

1%

$3B

$2B

10%

11%Seed

SeriesA

SeriesB

SeriesC

41%

LateStage3

Other4

12%

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

25%

InQ2,investmentinthespaceeconomymaintaineditsstrong

momentum,totaling$4.0Bacross123companies.Late-stageandother

companiesaretheprimarydriverwith$1.8B,accountingfor46%ofthe

total.Growth-stageinvestmentsfollowedcloselywith$1.7B,markingit

thesecond-highestquartersinceQ2’21.

Thetotalnumberofroundscontinuedtorebound,reaching123,the

highestsinceQ1’22.Thisisdrivenbyasurgeofgrowth-stagerounds

witha70+%increaseinbothQoQandYoY.Early-stagedealactivity

remainedstrong,makingup66%ofthetotalroundshare,slightlybelow

itsten-yearaverageof69%.Late-stageandotherroundsalsoremained

elevated,suggestingagrowinginvestorconfidenceacrossallstages.

BYLAYER•INVESTMENTAMOUNTANDDEALSBYQUARTER

$6B

130

Applications

Distribution

Infrastructure

NumberofRounds

120

$4B

$2B

$0100

2023Q22023Q32023Q42024Q12024Q2

110

NUMBEROFROUNDSINQ2

123

InfrastructurecompaniesledinQ2with$2.1Bininvestments,maintaining

theirdominanceinfourofthepastfivequarters.Since2020,annual

Infrastructureinvestmentshaveconsistentlyexceeded$10B,and2024is

onpacetocontinuethattrend.$1.8BApplicationsinvestmentsinQ2has

helpedthelayersurpassits2023total.Despitethisuptickandimproving

marketconditions,Applicationscompaniescontinuetofacefinancial

challengesnecessaryforexits.

2.Early-stageconsistsofPre-Seed,Seed,andSeriesArounds.

3.Late-stageconsistsofSeriesD+andLiquidityRounds.

4.Othersincludenon-traditionalinvestmentsliketake-privatetransactionsandself-capitalizationfromJeffBezos,ElonMusk,RichardBranson,andRobertBigelowwhoareclassifiedas

Individualinvestorsprovidinglargeinvestments(hundredsofmillions)intheirowncompaniesthroughunclassifiedrounds.

5

Infrastructure

Hardwareandsoftwaretobuild,launch,andoperatespace-basedassets

ANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHY

$20B

$15B

$10B

Other5

Corporate

VentureCapital

Angel/Individual

NumberofRounds

300

200

10%

2%

5%

6%

USA

China

France

UK

Japan

Other1

$5B

100

11%

66%

$0

Infrastructureinvestmentledduringthequarterwith$2.1Braised.VC

investorsaccountedfor51%ofcapitaldeployedexceedingthe40%

averagecontributionoverthepastdecade.Angel/Individualinvestors

continuetoplayanoutsizedroleaccountingfor26%ofQ2fundingand

21%since2015,drivenbyJeffBezos’financingofBlueOrigin.

TheU.S.hasdominatedglobalInfrastructureinvestmentoverthepast

decade,securing66%oftotalcapital,withSpaceXandBlueOrigin

accountingfor30%oftheU.S.total.Chinaisinsecondplaceandpoised

toexpanditssharewithacceleratinginvestmentsandprogressinSmall

Launch,SatCom,andAdvancedManufacturingsectors.Francetrailedat

thirdafterovertakingtheUKwiththesuccessfulmergerofOneWeband

Eutelsat.CountriesinAsia,notablyIndia,Japan,andSouthKorea,have

allexperiencedanincreaseinearly-stageactivity.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARE

$40B

NumberofRounds

400

$30B

300

$20B200

EmergingIndustries

$10B100

Moreonpg8-9

LaunchBrokerage

1rounds

Launch

391rounds

Satellites

981rounds

$00

Satelliteindustryinvestmentstotalled$36.4Boverthepastdecadeand

haveoutpacedLaunchforthefirsttime.Launchreceived$34.7Boverthe

sameperiod,withHeavyLaunchaccountingfor67%ofthistotal.Since

2015,threetimesmoreSatellitescompanieshavereceivedinvestments

thanLaunch,demonstratingashiftinfoundersbuildingspacecraftand

talentmovingtowardsadvancedsensingandconnectivity.

Since2015,theSatellitesindustryhasseenthelargestamountofdeal

activityrepresenting56%oftheInfrastructureroundshare.Zoomingin,

themostactivesectorshavebeenSatelliteManufacturing,SmallLaunch,

andGEOINT,generating61%ofdealsinthelastdecade.InQ2,thistrend

continuedwiththeaforementionedsectorscontributingto67%ofthe

totalrounds.

6

5.“Other”includesFoundations,PrivateEquity,SovereignWealthFunds,MutualFunds,CrowdPlatforms.

6.SeeUnpackingtheEmergingIndustriesblogpost

TOTALEQUITYINVESTMENTSINCE2015

$78.5B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•ANNUALROUNDSHARE

$30B

$20B

100%

50%

Other4

LateStage3

SeriesC

SeriesB

SeriesA

Seed

$10B

$0B

SeedSeriesASeriesBSeriesCLateStage3Other4

0%

Following2023’srecordyearforgrowth-stageInfrastructure

investments,Q2sawcontinuedmomentumwith$1.1B,marking

thefourth-highestquarterlyinvestmentin10years.Chinahasled

YTDinvestmentwithcompaniesraisingacrossSatCom,Launch,and

SatelliteManufacturingcompanies.Chinesecompaniesaccountedfor

37%ofthegrowth-stagefundingand63%oftheearly-stagefunding,

bothsurpassingtheU.S.

Whileearly-stageinvestmentsrepresented72%ofallroundsinthe

pastdecade,theirsharedecreasedto61%ofQ2roundsand65%of

all2024.Thismayindicateareboundintheinvestmentlandscapeand

asgrowthandlate-stagedealsbecomemorefrequent.Thisshiftmay

alsobeattributedtoinvestorsfocusingonexistingportfoliocompanies

ratherthanaddingnewinvestments,whichdecreasesthenumberof

early-stagerounds.

TOPDEALSINTHEQUARTEREXITSBYINDUSTRY

COMPANYROUNDAMOUNT

BlueOriginSelfCapitalization$500M

SpacePioneerSeriesC$210M

MinoSpaceSeriesC$140M

$50B

$40B

Stations

Satellites

Lunar

Logistics

Launch

Industrials

NumberofRounds

30

ICEYESeriesE$93M

PLDSpaceSeriesC$84M

$30B

20

ApexSeriesB$75M

IsarAerospaceSeriesC$70M

$20B

10

CesiumAstroSeriesB$65M

$10B

X-BOWSeriesB$60M

PrivateerSpaceSeriesA$57M

$0

0

Thetop10dealsinQ2amountedto$1.4B,withtheLaunchindustry

receiving68%ofthetotalandSatellites28%.TheSmallLaunchsector

wasthemostactive,featuringonecompanyeachfromtheU.S.,China,

Spain,andGermany.SatelliteManufacturingfollowedastheU.S.and

Chinaseektoacceleratemassproductioncapabilities.Thelistalso

featuredsevengrowth-stagedeals,demonstratingsustainedfollow-on

capitalavailability.SpaceCapitalportfoliocompanyICEYEraised$93Mto

launchupto15satellitesin2024.

Q2saw$3.2BrealizedthroughsevenInfrastructureexits.Thiswasdriven

bytwoEmergingIndustriescompaniesthatmadeup77%ofthetotal,

whilefivesatellitecompaniesaccountedfortheremainder.Cadence

DesignSystemshasacquiredBETACADESystems,aproviderofmulti-

domain,multi-physicssimulationsolutions.Anotherhigh-profiledealis

Synopsys’pending$35BacquisitionofAnsys,theleaderinengineering

simulation.Overthepastdecade,acquisitionshaveconstituted87%of

infrastructureexitvalueand67%oftherounds.

7

EmergingIndustries

SubsetofInfrastructureexcludingLaunchandSatellitesindustries

ANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHY

$3B

$2B

Other5

Corporate

VentureCapital

Angel/Individual

NumberofRounds

60

13%

1%

1%

2%

6%USA

Japan

Italy

Singapore

Canada

Other1

$1B

40

77%

$0

20

18companiesacrosstheEmergingIndustriesraisedatotal$0.1Bin

Q2.VChasaccountedfor80%ofinvestmentsYTD.Since2015,$7.0B

hasbeeninvestedinthiscategoryacross153uniquecompanies.VC

Investorsaccountedfor47%ofcapitaldeployed,followedbyPrivate

Equityat26%,andCorporateat17%.Notably,Angelinvestorsalso

contributedasignificantsharewith10%.

U.S.companiesraisedthemajorityofcapitalat77%overthepast

decade.ThisisdrivenbySierraNevada’sspin-off,SierraSpace,venture

investmentsinAxiomSpace,ICON,Varda,TrueAnomaly,LeoLabsand

self-capitalizationofVast.Japanaccountsfor13%withinvestmentsin

Astroscale,iSpace,andGITAI.Italy,Singapore,Canada,Germanyfollowed

withnotableinvestmentsincludingD-Orbit,Qosmosys,NorthStarEarth

andSpace,andTheExplorationCompany.

BYSECTOR6•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARE

$4B

NumberofRounds

60

$3B

40

$2B

Lunar

76rounds

Logistics

127rounds

20

$1B

Industrials

80rounds

$0

StationsLogisticsLunarIndustrials

0

Stations

107rounds

Overthepastdecade,Stationssecuredthemostfundingat$3.7B,

followedbyLogisticsat$1.7B,Lunarat$1.0B,andIndustrialsat$0.6B.

Zoomingin,theleadingsectorsincludeHabitats($3.3B),On-Orbit

Servicing($1.0B),Transport($0.5B),andManufacturingandAssembly

($0.3B),respectively.Thecompanieswiththelargesttotalinvestments

includeAxiomSpaceandSierraSpaceinStations,AstroscaleandD-Orbit

inLogistics,ICONandiSpaceinLunar,VardaSpaceandRedwire(NYS:

RDW)inIndustrials.

Logisticshasledroundactivitysince2019.ThistrendcontinuedinQ2,

closing10outof18roundswithanearequalsplitofOnOrbitServicing

andSSAcompanies.Thesectoralsoaccountedfor52%oftheYTD

funding.Furthermore,Logisticsmakesup33%ofthetotalroundshare

overthepastdecade,surpassingStationsat27%.Thisemphasizes

theincreasinglycriticalroletheLogisticsindustryplaysincultivatinga

sustainableandvibrantspaceeconomy.

8

TOTALEQUITYINVESTMENTSINCE2015

$7.0B

of$78.5B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE

$2B

100%

50%

Other4

LateStage3

SeriesC

SeriesB

SeriesA

Seed

$1B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

0%

Since2015,growth-stagefundinghasoutpacedearly-stageinvestment.

However,thischangedinQ2withbothhavingraised$1.9B.Thismay

indicateappetitefornewinnovationandgrowinginvestorconfidence.

Late-stageinvestmenttotalling$2.6Bisheavilyconcentrated(69%)ina

singlecompany,SierraSpace.While2023sawnearrecordinvestment,

continuedgrowthwilldependonlargegovernmentcontractsand

commercialpartnershipstounlockmoresubstantial,later-stage

rounds.

Early-stageroundsaccountedfor94%oftotalinQ2and80%ofall

roundssince2015.Incontrast,growth-stagerepresentedonly10%,and

just5%forlate-stage.Ahandfulofcompanies,includingSpaceCapital

portfoliocompaniesLeoLabsandImpulseSpace,havebeenableto

growsignificantlywithacceleratingcommercialrevenuesaswellas

governmentcontracts.Sustainedmomentumin2024willrequirestrong

revenuegrowthtodemonstrateviabilityofthesenascentmarkets.

TOPDEALSINTHEQUARTEREXITSBYINDUSTRY

COMPANYROUNDAMOUNT

PrivateerSpaceSeriesA$57M

StationsLogistics

LunarIndustrialsNumberofRounds

OriginSpaceSeriesA$15M

4

InfiniteOrbitsSeriesA$13M

$2B

PsionicSeriesA$10M

VyomaSeed$5M

3

StarsEdgeSeed$3M

BlueSkiesSpaceSeed$3M

$1B

2

SpaceQuartersSeed$1M

BlackswanSpaceSeed$1M

AstronetXSeed$1M

$0

1

SevenLogisticsinvestmentsdominatedQ2accountingfor75%ofthe

capitalraised.ThiswasledbySSAcompanyPrivateerSpace,which

recentlyraised$57MinSeriesAfinancingandacquiredEOanalytics

firmOrbitalInsight.OriginSpace,thefirstChinesecompanydedicated

totheutilizationofin-spaceresources,raiseda$15MSeriesAround.

Interestingly,therearesevennon-UScompaniesonthelist,reflecting

internationalgrowthinthiscategory.

EmergingIndustriescloseditslargestacquisitionduringthequarterwith

IngersollRandacquiringspacesuitcompanyILCDoverfor$2.3B,marking

thefirstexittransactioninthecategorytoexceed$1B.Astroscaledebuted

ontheTokyoStockExchange,becomingJapan’ssecondpubliclytraded

InfrastructurecompanyafteriSpace.However,publiccompaniesinthis

categoryhavegenerallyunderperformed,strugglingwithconsistent

financialmetricsduetothemarket’searlydevelopmentandhighCapEx.

9

Distribution

Hardwareandsoftwaretoconnect,process,andmanagedatafromspace-basedassets

ANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHY

Other5

Corporate

VentureCapital

Angel/Individual

NumberofRounds

$2.0B

$1.5B

$1.0B

$0.5B

60

40

20

8%

10%

12%

3%

2%1%

4%

60%

USA

Australia

China

UK

SouthKorea

Israel

Canada

Other1

$0

DistributioninvestmentanddealactivitywereflatQoQwith$0.1B

investedacross9rounds.Whiletotalfundingislessthanothertech

layers,innovationswithinDistributionhavereachedcriticalmilestones

andhelpmonetizetheInfrastructurebeingbuilt.AIadvancementsare

revolutionizinggeospatialdataprocessingandmapping,enablingreal-

timeinsightsandSatComcompaniesareunlockingnewdirect-to-device

andedgecomputingcapabilitiesandusecases.

Overthepastdecade,U.S.companiesrepresent60%ofthetotal

investment,followedbyAustraliaat12%,andChinaat10%.TheU.S.

fundinglandscapeisdiversifiedbetweenGPS/GNSSandSatCom,

whileAustraliaspecializesinGEOINTandChina’sinvestmentslean

predominantlytowardsGNSS.Withincreasingneedforresilient

ubiquitouscommunicationsandreal-timespatialinsights,it’spossible

thattheU.S.andChinawillexperienceincreasedinvestmentsatthis

layerofthestack.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARE

$4B

$3B

NumberofRounds

80

60

22%

40%

SatCom

GPS

GEOINT

$2B

40

$1B

20

38%

$00

GPSSatComGEOINT

Distributionhasseen$8.0Binvestedacross180companiesoverthe

pastdecade.Duringthattime,GPScompaniesattracted45%ofthetotal

investment,withSatComaccountingfor38%.GEOINThasshownrapid

growthconstituting56%ofdealactivityinQ2and55%ofinvestments

YTD.Since2022,GEOINThasreceived38%oftotalfunding,significantly

higherthanits10-yearaverageof18%.

SatComhasledtheroundsharewith39%ofactivityinDistribution

overthepastdecade.RecenttrendsinSatCominvolveadvancements

thatenablesatelliteoperatorstoprocessdatamoreefficientlyandgain

fasterinsights,utilizinginnovationsinmulti-orbitnetworkorchestration,

in-spacedatacenters,andend-to-endconnectivitysolutions.GEOINT

continueditsriseasthemostactivesectorinQ2,with86%ofrounds

since2015beingearly-stage,highlightingitsemergingstateandtheneed

tounlockgrowthpotential.

10

TOTALEQUITYINVESTMENTSINCE2015

$8.0B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE

$3B

$2B

100%

50%

Other4

LateStage3

SeriesC

SeriesB

SeriesA

Seed

$1B

0%

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

Early-stagefundinghasmaintainedmomentum,representing23%of

totalcapitaloverthepastdecade.Thelackoffollow-oninvestmentsin

thegrowth-stageunderscoresthechallengesDistributioncompanies

havefacedwhenscaling.Technologyatthislayerisshiftingaway

fromlargelyhardware-centricsolutionstodynamicsoftware-defined

capabilitiesthatbetterreflecttheevolvingneedsofendcustomersand

requirelesscapitaltogrow.

Q2dealactivityincludedeightearly-stageandonegrowth-stage

round.Since2015,early-stageactivityinDistributionhascomprised

74%ofthetotalroundshare,ahigherproportionthantheothertwo

layers.ThistrendisdrivenbyacontinuousriseinGEOINTrounds,as

SatComremainedstableandGPSroundsdecreased.Thishighlightsthe

sustainedinvestorinterestforinnovationbreakthroughsinGEOINTto

unlocknewendapplications.

TOPDEALSINTHEQUARTEREXITSBYSECTOR

COMPANYROUNDAMOUNT

Kontakt.ioSeriesC$48M

ArchetypeAISeed$13M

$4B

SatCom

GPS

GEOINT

NumberofRounds

10

SofantTechnologiesSeriesA$4M

SkynopySeed$3M

QomodoSeed$2M

$2B5

$0

SatComandGEOINTdominatedQ2witheightroundsclosed,but

thetopdealwenttoGPS.Kontakt.io,whichusesAI,IoT,andcloudto

providereal-timelocationdataandorchestratehealthcareoperations,

raised$48MinSeriesCfinancing.ArchetypeAIemergedfromstealth

witha$13MSeriesSeedfinancingroundledbyVenrock,andintroduced

Newton,afoundationmodelthatunderstandsthephysicalworldand

humanbehaviorleveragingmultimodaltemporaldata,includingsignals

fromalargevarietyofenvironmentalsensors.

ThreeacquisitionsclosedinQ2,withoneineachofthethreesectors.

Iridiummadeitsfirst-everacquisition,acquiringSatelles,aproviderof

securesatellite-basedtimeandlocationservices.Since2015,90%of

allDistributionexitshavebeenthroughacquisitions,and98%ofthem

operatedintheSatComandGPSsectors.AlthoughGEOINTDistribution

companiesareseenasstrategic,exemplifiedbyQualcomm’stwo

acquisitionsin2024,thesecompanieshavechallengesreachingscaleto

generatelargeexits.

11

Applications

Specializedhardwareandsoftwarethatutilizesdatafromspace-basedassets

ANNUALINVESTMENTSOURCECUMULATIVEINVESTMENTGEOGRAPHY

$50B

$40B

$30B

$20B

Other5

Corporate

VentureCapital

Angel/Individual

NumberofRounds

500

250

1%

1%1%

2%

4%

5%

6%

7%

38%

USA

China

Singapore

India

Indonesia

UK

Canada

Colombia

$10B

35%

Estonia

Other1

$0

With$1.8BinQ2investment,Applicationsflowsdroppedby52%QoQ

andincreased167%YoY.Despitethisshiftbeingdrivenbythreemega

roundsledbyScaleAI,wehavealsoobservednumerousbridgerounds

fuelinggrowth-stageandlate-stagefunding.Thismayindicatethat

Applicationscompaniesseemtohavemovedpasttheirfundingtrough.

However,uncertaintyremainsasvaluationscontinuetoresetand

companiesawaitfavorableconditionstogopublic.

U.S.investmentsaccountfor38%oftheglobaltotalofApplications.

Chinesecompaniesfollowcloselywith35%drivenbythebooming

e-commerceandLBSmarkets.Singapore,India,andIndonesiahave

emergedasprominentgeographieswithcompaniesspecializinginLBS,

mapping,smallvehiclemobility,aswellasenterprisesoftwareforsupply

chainandlogisticsmanagement.TheUKrankslowerinApplications

comparedtoothertechlayersbutstandsoutinautonomousmobility

andclimatesolutions.

BYSECTOR•CUMULATIVEINVESTMENTAMOUNTBYSECTOR•CUMULATIVEROUNDSHARE

$200B

NumberofRounds

2%GPS

$150B

600

28%

GEOINT

SatCom

$100B

400

$50B

200

$0

0

70%

GPSGEOINTSatCom

GEOINTcontinueditsmomentumasthesecondhighestinvestment

sector,accountingfor73%ofQ2fundingandrecordingthefourthhighest

quarterinthepastdecade.GPShasdominatedApplicationswith92%of

totalinvestmentsince2015,butchallenginguniteconomics,competition,

andgrowth-at-any-costhavecausedinvestorinteresttowane.LBS

companiescontinuetoconsolidate,withregionalleadersseekingbest-

basedfinancingalternatives.SatComApplicationsarepoisedforgrowth

asdirect-to-deviceandedgetechnologiesgainmomentum.

TheshareofGEOINTandSatComApplicationshasgraduallyrisen,

representing30%ofroundsand8%oftotalfundingoverthepastdecade.

Nearly77%oftheseroundsareearly-stagedrivinginnovation.AI-based

open-sourcemodelsandtheproliferationofsatelliteconnectivityareset

totransformproductofferingsandcapabilitiesacrossglobalmarkets.

GPSApplicationsholdthepotentialforfurthergrowthbutbreakthroughs

incm-levelpositioningandseamlessindoor-outdoorcoverageare

needed.

12

TOTALEQUITYINVESTMENTSINCE2015

$204.9B

BYSTAGE•CUMULATIVEINVESTMENTAMOUNTBYSTAGE•CUMULATIVEROUNDSHARE

$200B

$150B

$100B

100%

50%

Other4

LateStage3

SeriesC

SeriesB

SeriesA

Seed

$50B

$0

SeedSeriesASeriesBSeriesCLateStage3Other4

0%

Q2sawasurgeingrowth-stageinvestments,whichincreasedby112%

QoQto$0.6B,markingthesecondhighestquartersinceQ1’22.Late-

stageinvestmentsalsohitthehighestlevelinthepastsixquarters.

Whileearly-stageinvestmentsraemainedsteadyandmega-rounds

haveyettoreturnwithforce,thistrendmayindicaterenewedinvestor

interestasvaluationsadjusttohistoricalnorms.

ThepercentageofSeedroundsoverthepastdecadehasdeclined,

whileSeriesAhasinc