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🚀 VC Funds Keep Flowing + Competitors Collaborate

🚀 VC Funds Keep Flowing + Competitors Collaborate

September 24, 2021

The Space Scoop

Week Ending 09.24.2021

Hello from New York and a warm welcome to our new readers! Another week of non-stop news from the booming NewSpace industry, including: 8 Contract Agreements, 4 Capital Raises, 2 IPOs and 1 Acquisition.

Market Max-Q 📈

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NASA Receives “About a Dozen” Private Sector Proposals To Replace the ISS

By the end of this decade, the International Space Station is expected to retire. NASA is looking to outsource the building of private space stations in orbit (which seems to be the case for just about everything from their end these days).The agency anticipates saving more than $1B per year through this initiative. Phil McAlister, NASA Director of Commercial Spaceflight, stated that they received "about a dozen proposals” for contracts from startups to established aerospace contractors. Up to $400M in contracts will be awarded to 2 to 4 bidders "before the end of the year." Companies that previously expressed interest in the Commercial LEO Destinations include the following: ABL Space Systems, Airbus (XPAR:$AIR), Axiom, Blue Origin, Boeing ($BA), General Dynamics ($GD), IBM ($IBM), Lockheed Martin ($LMT), MDA (TSE:$MDA), Northrop Grumman ($NOC), Raytheon ($RTX), Redwire Space ($RDW), Sierra Nevada, SpaceX, Virgin Galactic ($SPCE) and Voyager Space Holdings.

Astra and Firefly Aerospace Sign Rocket Engine IP Deal

The two have signed a ~$30M contract for Astra's rights to manufacture Firefly's Reaver rocket engines in-house. Firefly sends "up to 50" of its rocket engines to Astra’s rocket factory where Astra engineers will analyze the engine(s) for detailed inspection, attempting to help Astra reach its publicly stated “500kg to 500km” goal. To be clear, $ASTR is not outright buying engines from Firefly as this doesn't align with Astra’s brand of supply chain vertical integration. Firefly did offer to sell Astra its Reaver engines directly but they denied: “We would not want to be in a position where if they don’t supply us an engine, we can’t launch a rocket.” Understandable. I'm sure ULA wishes they didn't put themselves in a position of reliance on Blue Origin right now..

Virgin Orbit Enters AI Software Agreement With BigBear

BigBear.ai reported 1H'2021 earnings on Monday, releasing the news of a multi-year commercial partnership with Virgin Orbit ($NGCA to $VORB). They will provide real-time deployment of AI-powered software for mobile field assets; the development of applications that can identify objects, analyze ground material, map land and monitor climate in space; and the use of innovative products that fuse data from multiple intelligence data. The exact terms were not disclosed. BigBear.ai and SPAC GigCapital4 Inc. ($GIG) previously announced a definitive merger agreement that will result in BigBear.ai becoming a publicly traded company with the transaction expected to close in Q4'2021.

Rocket Lab Wins Contract to Launch Orbital Debris Removal Demonstration Mission for Astroscale

$RKLB announced Tuesday it penned a dedicated launch contract with Astroscale Japan, a subsidiary of Astroscale Holdings, a satellite servicing and long-term orbital sustainability company. The demonstration will launch Electron will launch the Active Debris Removal by Astroscale-Japan (ADRAS-J) satellite in 2023. This satellite was selected by JAXA (Japan's NASA) for Phase I of its Commercial Removal of Debris Demonstration Project (CRD2), one of the world’s first orbit debris removal technology demonstrations. More of a visual person? Watch this video describing the process.

Private Equity Firms Begin Exploring the Space Sector

PE shops are ramping up investment in the blossoming NewSpace sector as some aim to create a presence in an industry where there have not previously been before. This year has seen by far the most deal activity ever by private equity in the space sector. Through September 16, buyout firms invested about $1.2B in U.S.based space companies, surpassing the second-highest annual sum ever by 59% in less than a full year, according to PitchBook. The amount is intriguing as the speed with which PE has increased its investment in the sector: PitchBook recorded only $85M in PE investment in the sector between 2018 and 2020. The space sector is still too young, and most companies currently too small, to absorb vast PE capital. PE firms typically buy, reorganize and sell mature companies. It is prime time for venture capital firms though. Of PE firms, AE Industrial is the most active with seven U.S. space deals. AEI implemented the classic PE strategy of the roll-up (buying and combining numerous smaller companies into a larger one) to create Redwire Space ($RDW). Redwire began trading on the NYSE this month through a SPAC merger valuing the company at $620M.

In Other News 🛰️

Aurora Propulsion Technologies Raises $2M in Seed Funding

(TechCrunch)

The provider of solutions for spacecraft maneuvering and deorbiting technology closed the round ahead of bringing their technology to market. The round was led by Practica Capital.

Endurance Acquisition Prices IPO Targeting Communications and Space Tech

(Renaissance Capital)

The SPAC was formed by PE firm Antarctica Capital and raised $200M by offering 20M units at $10. $EDNCU intends to focus on companies in the Asia Pacific region.

Tom Mueller, Co-Founding Member of SpaceX, Launches New Space Company

(Twitter)

There are not many details available yet about 'Impulse Space Propulsion' but he did note in a tweet to Elon Musk that the propellant would be based on "nitrous oxide and ethane stored as liquids."

Paras Defence & Space Technologies IPOs

(Insider India)

The Indian-based company (NSE:$PDSTL) launched its direct listing during the September 21-23 window. The issue offers for sale up to 17,24,490 shares by existing shareholders.

Near Space Labs Raises $13M Series A Round

(Company)

The geospatial intelligence company announced the capital will help to accelerate the company’s geographic expansion, invest in key hires and strategic new technologies. The round was led by Crosslink Capital, with participation from Toyota Ventures and others.

Xona Space Systems Announces $8M Funding

(SpaceNews)

The round was co-led by Seraphim Space Investment Trust ($SSIT) and MaC Venture Capital, with participation from Toyota Ventures and others. Xona's total funding is now $10M, including a $1M pre-seed round and $1M secured in grants prior to this raise.

Quick Links 🔗

A New 'Space Business Podcast' Episode Has Premiered Featuring Delian Asparouhov, Co-Founder & President of Varda Space IndustriesChad Anderson of Space Capital Discusses What's Next for Space Investments on BloombergAerojet Rocketdyne ($AJRD) Awarded $600M NASA Contract for Orion Spacecraft Main Engine Spaceflight Inc.'s New Launch Contracts Bolster Growth of Space Infrastructure D-Orbit Signs $2,580M Contract With ESA To Develop Debris Removal Technology($SPCE): Where Will Virgin Galactic Stock Be in 5 Years?Space Development Agency Approves L3Harris ($LHX) Design for New Missile Tracking SatellitesSierra Space Hires Hundreds in Sprint Ahead of Dream Chaser LaunchSpire Global ($SPIR) and Myriota Partner To Re-Imagine Internet of Things ConnectivityAST SpaceMobile ($ASTS) Eyes UAE for Spacecraft Component ManufacturingTerran Orbital Acquires New Satellite Development FacilityFour Australian Space Companies Share in $3M Grants for Space Manufacturing ProgramsNorthrop Grumman ($NOC) To Launch New Satellite-Servicing Robot Aimed at Commercial and Government MarketBoeing's ($BA) Upcoming NASA Starliner Test Launch Could Slip to 2022General Dynamics ($GD) and Raytheon ($RTX) Joint Venture Lands $125M Space Force ContractRocket Lab ($RKLB) Is Surging As It Keeps Winning New Space BusinessAstra Space ($ASTR) Can Still Soar Five to Ten Times Despite Its Recent SetbackBlackSky ($BKSY) Hires Chief Revenue OfficerKarman Missle & Space Systems Acquires Systima Technologies To Target Hypersonic and Space TechnologyAstra ($ASTR) Chief Engineer of Advanced Technologies, Chris Thompson, Leaves the Company After Four Years

Chart of the Week 📊

The newly minted Inspiration4 astronauts, behind Elon Musk, outshined both Branson and Bezos by going nearly 5.5x and 7.0x higher then their respective flights. The crew also went well above the ISS to a height of 585km above Earth, the farthest into Space since 2009.

🚀 VC Funds Keep Flowing + Competitors Collaborate