private entrepreneurial space inflection point - space tech pasadena 2016
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UNDERSTANDING THE SPACE FUNDING INFLECTION POINTEllen ChangPartner, LightSpeed Innovations
Space Tech ConferenceMay 25, 2016
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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
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3 Copyright © 2016 LightSpeed Innovations
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4 Copyright © 2016 LightSpeed Innovations
Private Public
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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)
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6 Copyright © 2016 LightSpeed Innovations
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
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Tauri Group
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8 Copyright © 2016 LightSpeed Innovations
But, to look at Space Venture Capital Investment
in Perspective…
NVCA Yearbook 2016
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And, Further…
9 Copyright © 2016 LightSpeed Innovations
NVCA Yearbook 2016
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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
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Traditional Players Key to a Healthy Ecosystem
11 Copyright © 2016 LightSpeed Innovations
As Partners As Buyers
(Acquirers)
SIA Members
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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
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?
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14 Copyright © 2016 LightSpeed Innovations
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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.
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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…