The Space Investor
Posts
🚀 Space Balloons + Astra Explains

🚀 Space Balloons + Astra Explains

October 15, 2021

The Space Scoop

Week Ending 10.15.2021

Hello from New York and a warm welcome to our new readers! We have an action packed week to cover, including: 3 Capital Raises, 2 Acquisitions, 2 Cooperative Research & Development Agreements and 1 SPAC IPO. Godspeed.

Market Max-Q 📈

Deutsche Bank Highlights Astra Near-Term Upside and Astra Responds

On Monday, $DB added $ASTR to their short-term 'Catalyst Call Buy List' as they "believe the pullback in the stock offers compelling risk/reward over the next few weeks as there could be 2-3 potentially positive events that occur. In our view, Astra could provide details about its prior unsuccessful launch and subsequently confirm the date of its next mission in the coming weeks; these developments should both lift the stock." Astra initially jumped higher on the news, but finished the day -4.2% lower.With great timing, on Tuesday Astra announced the launch window for LV0007. The first segment is open from October 27 through October 31, 2021 while the second is open from November 5 through November 12, 2021. Astra also announced findings from its investigation of the engine abort during the August 28, 2021 launch of LV0006. During liftoff, fuel and liquid oxygen leaked from the propellant supply system and both mixed and ignited, which disabled one of the five first stage engines. Astra implemented the following design changes in LV0007:

The propellant supply system was reconfigured to reposition the fuel supply and liquid oxygen supply so that even if both were to leak again, they would not mix
The propellant supply mechanism was modified and requalified to reduce the risk of leaks in the future
Verification procedures have been improved for design and operational processes

$ASTR continues to lead the LV0006 investigation in collaboration with the FAA and finished Tuesday +11.7% higher.

Varda Teams Up With SpaceX For First Satellite Launch

The company will launch its first spacecraft on a Falcon 9 rideshare mission scheduled for Q1 2023 to demonstrate the ability to produce a 'wide range of materials' in microgravity. The spacecraft will spend up to three months in orbit testing space manufacturing technologies and will return to Earth with the material produced in orbit via a reentry capsule. SpaceX was chosen as it offered the least expensive and most reliable solution. “Launch costs is a core driver of our economics” said Delian Asparouhov, co-founder and president. “We want to stick to the lowest cost available solution.” Rocket Labs Electron was contemplated, noting “there were favorable economics for Photon and Electron,” but concerns were there about being too reliant on a single vendor. “If you concentrate risk around one vendor, it can be hard to recover.” Varda has not identified what materials their spacecraft will produce, stating "the company would announce it once it signed a contract with a customer" and that there is a "50% chance that could happen in the next six months." The terms of the contract were not disclosed.

Rocket Lab Acquires Advanced Solutions, Inc

On Tuesday, $RKLB announced the acquisition of a Colorado-based aerospace engineering firm that provides space software, mission simulation and test systems, and Guidance, Navigation and Control (GNC) solutions. This is the company's first acquisition since going public through a SPAC merger with Vector Acquisition Corp ($VACQ). The deal closed for $40M, plus an additional $5.5M based on a 2021 performance earnout. Founded in 1995, ASI has developed a suite of software and technology solutions for reliable space mission design and operation. Their customers include the U.S. Air Force, U.S. DOD organizations, NASA, and commercial spacecraft developers including space start-ups. CEO Peter Beck said his company was familiar with ASI because they were a customer. “We used their software in some of our projects,” adding that the “chemistry was right” between the companies. The stock closed -3.9% on the news.This purchase, their second, continues Rocket Labs mission to be an end-to-end space company. The company last acquired Sinclair Interplanetary, a Canadian smallsat component manufacturer, for an undisclosed amount in March 2020. Sinclair Interplanetary builds reaction wheels and star trackers for small satellites. Per Beck, Rocket Lab has up to half a dozen similar potential acquisitions in various stages of study, adding they are making "very targeted, very methodical acquisitions" of companies. “There are some really fantastic companies out there that, when combined with Rocket Lab, can really scale." Some companies have approached Rocket Lab about a sale, but Beck said the more likely potential deals involve companies they are already working with. “We are doing very targeted, very methodical acquisitions. We are not trying to buy everything.”

Startup Privateer Space Aims To Be the 'Google Maps' of Space

Last month, Steve Wozniak tweeted a vague YouTube link describing his new space venture. This week, the company opened up about its plans in an interview with TechCrunch. Initially, rumors circulated that Privateer would focus on cleaning up space debris but co-founder Alex Fielding notes that “Privateer actually got started, not with the goal of cleaning up space on day one, but with the goal of building the Google Maps of space. We are in a world with many, many, many more things in orbit, of which those things are far more dangerous, almost all in low orbits, moving very, very fast, and they're not well tracked or understood for the most part.”The startup is sending its first satellite, Pono 1, up on February 11, 2022. The spacecraft is about half-a-foot in size and equipped with 42 sensors, 30 of which are non-optical and 12 of which are optical cameras. Beside launches, Privateer is already working with Astroscale, an orbital logistics and servicing startup demo-ing a space junk removal satellite. The company has also signed a partnership with the U.S. Space Force. The details have not been disclosed. The two are pursuing a complete Google Maps of space because not doing so could be fatal. Per Fielding, “I’m an optimist and I still am very, very, very afraid that we’re too late, and that we are probably 24 months of the first on-orbit human space casualty due to the proliferation in low Earth orbit.”

Spaced Ventures Raises $1.2M Seed Round To Open Access to Space

Spaced Ventures is a newly launched equity crowdfunding platform focused on early stage space startups, which traditionally lack being on the receiving end of venture capital dollars. With crowdfunding, non-accredited investors can allocate as little as $100 into startups to diversify their portfolios.Today, the company announced they have raised seed round financing led by WorldQuant Ventures, with participation from well-respected angel investors in the space industry. Spaced Ventures users have so far invested $650K+ across three offers: ExoSpace, Cosmic Shielding Corp and Infinite Composites. "Investing in private space companies has been limited to high-net-worth investors,” said Aaron Burnett, co-founder and CEO. “The excitement for the space industry has never been greater and this unprecedented access to space investing will spur innovation and will be the key to putting humanity into space permanently.” Spaced Ventures was founded in 2020 and previously raised a pre-seed round in April 2021. You can learn more about Spaced Ventures in a recent 'Space Business' podcast episode here.

In Other News 🛰️

Parsec Capital Acquisition Corp Completes SPAC IPO

(YahooFinance)

$PCXCU announced the closing of its $86.3M initial public offering, or 8,625,000 units at $10.00 per unit. This includes the full exercise by underwriters of their over-allotment option to purchase up to an additional 1,125,000 units.

Andøya Space Lands Norwegian Government Funding

(SpaceWatch)

The company is set to receive $42.9M in funding from the Norwegian government for a small satellite launch base in Northern Norway. Andøya has previously signed agreements with Isar Aerospace and Rocket Factory Augsburg.

Sidereus Space Dynamics Raises $1.7M in Seed Funding

(BeBeez)

The Italian orbital transport startup aims to develop small, light and economical launchers, capable of putting small payloads into orbit at short notice. This round was led by CDP VC and Primo Ventures, and will help continue the development of a second prototype.

Embedded Ventures Announces R&D Agreement With U.S. Space Force

(PRNewswire)

The firm, which invests in dual-use space startups beyond launch, came to a multi-year agreement with the Space Force's SpaceWERX office. The two will collaboratively investigate the potential 'benefits of leveraging VC investment practices to accelerate the pace of change and innovation'.

Space Perspective Raises $40M Series A

(BusinessWire)

The round was led by Prime Movers Lab, with participation from LightShed Ventures, Explorer 1 Fund, Yamauchi No.10 Family Office, Tony Robbins, E2MC, SpaceFund, Kirenaga Partners, Base Ventures and 1517 Fund. The company last raised a seed round for $7M in December 2020.

Quick Links 🔗

Rocket Lab ($RKLB) Launch Operations Underway For BlackSky ($BKSY) MissionsEveryday Astronaut Tours Firefly Aerospace's Factory With CEO Tom Markusic4iG To Acquire 51% Stake in Israel's Space-Communication Ltd. (TLV:$SCC)Redwire ($RDW) To Provide Navigation Components for NASA’s Lucy Mission To Study Jupiter’s Trojan AsteroidsSkyrora Agrees to Multi-Launch Deal With Shetland Spaceport for the Next DecadeHawkEye 360's Third Satellite Cluster Begins Commercial OperationsMaxar ($MAXR) Files Protest Over Space Development Agency’s Satellite ProcurementSpace Capital Releases Q3'2021 Space Investment ReportVoyager Space Files Form D With the SEC for Completed $18M Equity RaiseRedwire ($RDW): Yes, There Is A CatchPlanet Labs ($DMYQ) Announces Partnership Initiative With GoogleCloud11 Best Space Stocks To Buy According To Hedge FundsEverything You Need To Know About Ark’s Space ETF ($ARKX)Planet Labs ($DMYQ) Introduces New High Resolution Satellites And Fusion With SARAST SpaceMobile ($ASTS) CEO at #RakutenOptimism Event Discussing Cellular Broadband From SpaceCNBC Talk With Space Reporter Michael Sheetz Regarding the Latest Space News and What’s Next for the IndustryPlanet Labs ($DMYQ) Co-Founder & CEO Joins CNBC ‘Squawk on the Street’ To Discuss The Growing Space EconomyOrbit Fab Enters Into Cooperative Research & Development Agreement With the US Air Force Research LabSeraphim Space Camp Accelerator Details Six Startups in ‘Mission 8’ CohortVirgin Galactic ($SPCE) To Begin Vehicle Refurbishment Process, Delaying #Unity23 Spaceflight To 2022

🚀 Space Balloons + Astra Explains