Euroconsults new Financing and Transactions database emphasises the link between commercial space and private finance at a time when investors are looking for the next big thing in one of the fastest-growing industry sectors.
The role of space capabilities in environmental monitoring and the battle against climate change was stressed again during the Secure World Forums Summit for Space Sustainability in New York this week. Whether for measuring greenhouse gas emissions, monitoring coastal erosion, tracking wildfires, or predicting moisture levels in the soil, satellites are a keystone of present and future climate change monitoring and adaptation efforts. In particular, the event highlighted the growing involvement of commercial space companies in measuring the effects of climate change or acting as fact-checkers for Environmental Social Governance (ESG) commitments. Many of these companies have developed and launched their satellite capabilities recently, due to private capital raised on the space financing market.
Clearly, the space financing marketplace has grown at an outstanding pace in recent years, with many private investors taking an unprecedented interest in space startups and backing innovative ventures across the industry, from broadband and EO constellations to augmented analytics services, launchers, Human spaceflight, and many others.
Hence, during the New York event, Euroconsult, which specialises in the space sector and satellite-enabled verticals, launched its new Financing and Transactions Database, which aims to equip investors, governments and wider stakeholders with the means of tracking financing flows, active players (investors and funding recipients) and business models via a comprehensive dashboard. The value for those accessing the comprehensive data platform will include the ability to quickly identify high-potential space start-ups attracting the most interest, track competitor activity, define financial strategies, analyse the health of different technological segments or geographical regions, access detailed market intelligence on recent mergers and acquisitions and much more.
The database is divided into two parts, with the first listing funding operations, such as private equity operations, debt, grants, SPAC (special purpose acquisition companies) mergers and IPOs (initial public offerings) along with related investment value, all searchable by filters including company activity, satellite application, investors, and country. The second part focuses on mergers and acquisition operations, again with a host of user-friendly search filters.
Euroconsult CEO Pacome Revillon said: “This week has seen a topical focus on the ability of satellite technology to support Earth in yet another innovative method, through verifying and reinforcing the impact of corporations ESG commitments. Such information is proving valuable for investors around the world as they decide which companies and business verticals to invest in.”
“As space data demonstrates value for investors across all sectors, Euroconsult is launching a database that seeks to inform, educate and save time for those specifically building space sector investment portfolios. The platform already details over 2000 financing operations and around 120 transactions that we have been tracking since 2020, all in one place. As the space sector becomes increasingly attractive to investors due to its growing contribution to the economy and environment, this tool will be key for staying ahead of the curve and applying due diligence on space financing decisions.”
Following an investment spike of $16.5bn into space technology and services in 2021, driven by a post-covid euphoria that witnessed a flurry of SPAC mergers and other space-related investment shifts, last year saw a strong reduction in value, down to $10bn billion. This was due to the saturation of the market by supply, disappointing financial results of publicly-listed emerging space companies, and the deteriorating economic context including the invasion of Ukraine and the implementation of financial measures to mitigate the long-term impact of the pandemic
However, so far this year there are signs of recovery, with investments up by 29% year on year at the end of the first quarter. The ongoing dynamics of this fast-evolving sector will be captured in Euroconsults database and updated on a monthly basis, as the commercial space economy continues to represent an attractive investment opportunity, with the market predicted to surpass the trillion-dollar mark in the coming years.
