Private entrepreneurial space inflection point - space tech pasadena 2016

UNDERSTANDING THE SPACE FUNDING INFLECTION POINTEllen ChangPartner, LightSpeed Innovations

Space Tech ConferenceMay 25, 2016

LightSpeed InnovationsLightSpeed Innovations is a business accelerator formed to mentor and invest in innovative, disruptive aerospace/robotics/hardware start-ups. Our mission is to inspire, enable and propel the next generation of aerospace companies and build up the community to create a competitive and thriving start-up ecosystem. (www.lightspeedic.com) <Phase Four, DSI, Kubos, Ragnarok, Smargo, Atlas Ground Systems>• Mentor Driven

• Accelerated customer discovery – work out business model

• Aligned Incentives

• Based in SoCal; Worked with Companies from around the US

• 2 Cohorts of 10 a year

2

We Mentor and Invest In Astropreneurs

http://www.lightspeedic.com/

3 Copyright © 2016 LightSpeed Innovations


Private Public

Venture Rounds

Average seed

– With SpaceX/Blue Origin

• 18.59 million

– Without

• 1.07 million

What is average Series A

•$20.33 million

What is average Series B

•29.16 million

Average C

– 47.5 Million

Average D

– 151 million

E- Just spaceX

– 1 billion

CB Insights

Activity Considerable Despite having only 2 “major” exits (Skybox,

Climate Corporation)


Many technologies currently under

development by

venture-backed companies are truly

disruptive technologies that do not

lend themselves to being embraced by

larger companies whose current

products could be cannibalized by this.

NVCA Yearbook 2016

Tauri Group


But, to look at Space Venture Capital Investment

in Perspective…

NVCA Yearbook 2016

And, Further…


NVCA Yearbook 2016

Gov’t Investment Still Key

• Drives new economies that private markets

won’t fund (Space Security, In Orbit

Services)

• Once new economies available, private

investors will come in force

Traditional Players Key to a Healthy Ecosystem


As Partners As Buyers

(Acquirers)

SIA Members

Business Case Still Matters

• Press of investment has attracted entrepreneurs

• Not seeing a lot of good business plans

– Focused on the Tech

– Not focused on the market

– Projections not realistic

– Manufacturing/Production is underestimated

– Sales/Marketing non-existent

?


A Key Driver: Lower Cost Barriers

Space launches now cost 11X less than 5 years ago and that

satellites can cost 100X less?

Goldman Sachs Equity Research: Our ability to get to space

has changed more in the last 5 years than during the entire

prior period of space exploration.

Space Startups have staying power

Private funding can make a difference

That there is a New Space Segment

Mental Models of the Industry

We have accepted that…

Private entrepreneurial space inflection point - space tech pasadena 2016

Small Business & Entrepreneurship