Your SlideShare is downloading. ×
0
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Seed Stage Space Venture Finance - Burton Lee - Dec 2007
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Seed Stage Space Venture Finance - Burton Lee - Dec 2007

922

Published on

venture finance, angel, seed, commercial space, aerospace, aviation, startups, investing, space angels network, burton lee

venture finance, angel, seed, commercial space, aerospace, aviation, startups, investing, space angels network, burton lee

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
922
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
19
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Moderator Burton Lee, Ph.D., MBA Managing Director, Space Angels Network Space Investment Summit 3 5-6 December 2007
  • 2. Space Investment Summit 3 Seed-Stage Space Venture Finance Market Overview, Strategy and Plans Dr. Burton H. Lee PhD MBA Managing Director December 6, 2007
  • 3. Space Angels Network Startup Equity Finance Pipeline Major Chronic Structural Gap in Seed-stage Funding for Space-related Companies Angel Investors Private Investment And Networks Equity Banks FFF Seed Early Growth Later Venture Capital Funds
  • 4. Space Angels Network Structure of Angel Finance in US Commercial Space - 2006 $25.6 Bn 234,000 51,000 deals Individual Investors $24.1 Bn Independent Angels ACA Angel Networks $1.5 Bn ~50,000 deals (229,000 Investors) (5,600 Investors) ~750 deals ~$10 Mn ~100 Active Space Angels Order of ~10 deals ~ 100 Entrepreneurial Space Companies Magnitude Source: UNH CVR/ACA/Innovarium Ventures estimates - 2006
  • 5. Space Angels Network Angel Investor Preferences - 2006 Where do the majority of US angels invest? Financial & Business Industrial & Sector Healthcare Software Biotech Retail Products Energy Deals 21% 18% 18% 8% 6% 6% Space & Aviation ? Source: UNH CVR/ACA (2006)
  • 6. Space Angels Network Finding Seed-stage Equity Finance for Space Startups Is Difficult! Space Space Angel Angel Space Space Angel New York/ Space Angel Boston Angel Silicon Angel Group Valley Space Angel Angel Group Space Angel Space Space Angel Angel Space Los Angeles Venture Space Angel Space Today Angel Space Angel Houston • How to find an angel investor today: Use personal networks, apply to angel networks • Result: hit or miss for the average space startup
  • 7. Space Angels Network Virtual Solution for a National Network of Angel Investors Space Angel Space Space Angel Angel Space Space Angel Angel Space Angel Space Angel Space Space Angel Angel Space Space Venture Angel Space Angel Space Angel Space Angel • A Need and Opportunity: Aggregate individual angel investors and space-related startups • Goal: Sustainable deal flow of good companies Confidential Private and with solid management teams & technologies
  • 8. Space Angels Network “Space Angels Network” Space Angels Network is a Web “infomediary”: an online platform for distributing information between and among space entrepreneurs and prospective angel investors—our members. www.spaceangelsnetwork.com We enable our members to: • Find seed- and early-stage investment opportunities. • Connect with like-minded investors throughout the U.S. • Collaborate on due diligence and deal negotiations. • Find deal flow which is unavailable thru traditional angel channels. • Access aerospace industry experts: technology, markets, legal, finance
  • 9. Space Angels Network Defining a New Investment Domain “Space” is not an industry (like Internet, clean tech, etc). “Space” is a place — with unique risks and rewards. Specific industries in which our members actively seek seed- and early-stage investment deals based on space-related technologies include the following: • Biomedical and Life Sciences • Materials • Energy, Environment, Clean/Green Tech • Nanotechnology • Entertainment, Sports, Media and Education • Retail and Consumer Products • Information Technologies and Software • Transportation Vehicles and Infrastructure • Information Technology Services • Transportation Services • Manufacturing, Mining and Construction • Travel and Tourism
  • 10. Space Angels Network Major Space-related Market Trends Space-Information Technology convergence Integrated telecommunications and imaging systems (Iridium, etc) Location-based services integrate imaging and telecom with GPS and RFID Desktop Google Earth, Microsoft Virtual Earth + migration to mobile platforms Environmental sensing & climate change monitoring (CO2 levels, etc.) Space-Air Traffic Management System (SATMS) modernization around IP networks IT “Super Angel” investments responsible for most NewSpace momentum Space-Aviation convergence Combined aerial/space imagery (e.g. Google Earth, etc) Growing integration of hybrid technologies: aircraft, UAVs, LEO Sats, GEO Sats Horizontal takeoff/landing suborbital RLVs (SpaceShipTwo, Rocketplane XP, etc.) Spaceport/airport hybrids emerging
  • 11. Space Angels Network Major Space-related Markets in Next 5 – 15 Years Next 5 Years Very Light Jets and associated equipment & services (VLJ’s aka “Air Taxis”) Unmanned Aerial Vehicles (UAVs) (commercial, civil, military) Satellite-RFID Services (fixed/mobile asset tracking & monitoring) LBS = Earth Observation + GPS + Internet (real estate, mapping, environment) Telemedicine Sensors and avionics ISS Resupply Small Satellites (micro-nano-pico-etc) Space Tourism (suborbital, orbital) From 5 to 15 Years Out Point-to-point suborbital transportation (commercial, military) Operationally Responsive Space (ORS) FAA Air Traffic Management System Modernization First Personal Air Vehicles (PAVs) ??
  • 12. Space Angels Network (Aero)Space and The Spectrum of Investor Risk A Broad Spectrum of Investment Opportunities IT: Telecom Imagery Aircraft GPS Components NewSpace NewSpace Air Traffic & Services Management RFID VLJs UAVs System (SubOrbital) (Orbital) Materials Avionics Sensors Telemed Life Sci Lower Risk High Risk
  • 13. Space Angels Network Major Space-related Investor Exits and Events - 2007 Scaled Composites (acquisition by Northrop Grumman) Aviation and space platform/composites manufacturer AeroAstro (merger with Radyne Corporation) Small satellites + telecommunications systems Payload Systems (acquisition by Aurora Flight Sciences) Space payloads + UAV manufacturer Other significant events MicroSat featured at Houlihan Lokey Aerospace Defense conference (October) XCOR Aerospace investment by Boston Harbor Angels Orion Propulsion wins major Boeing subcontract
  • 14. Space Angels Network Strategic Relationships – Aimed at Deal Flow and Successful Exits Local Angel Networks Federal Venture Capital S&T Agencies Firms Space Prize Organizations State Space Authorities & Equity Funds Corporate M&A Groups Research Universities & Non-profit R&D Institutions Viable Seed-stage Startups Early-stage Startups Input Output
  • 15. Space Angels Network Company Acceptance Criteria Solid management team with track record Product or service with sustainable competitive advantage Strong IP assets and strategy Clear understanding of the market(s) and market growth profile Viable business model Reasonable financial analysis and ROI projections Risk management approach Well-written Business Plan and Executive Summary One-person shops, hobbyists and Flying Saucers need not apply! Passion is OK, but sound business fundamentals must come first
  • 16. Space Angels Network Space Angels Network Core Strategy Broaden Spectrum of Investment Opportunities Beyond High-Risk “NewSpace” Companies Go “Downstream” in Investor Risk for primary deal flow Offer Diverse Menu of Lower Risk Space-related Companies Show Investors Deals Closer to What They Understand & Now Invest In Space-Information Technologies (software, Internet, electronics, digital media) Space-Life Sciences Achieve successful exits for New Investors Then move them “upstream” - to higher risk NewSpace companies Space Angels Network is a startup company too …. !
  • 17. For more information, please contact: Dr. Burton Lee blee@spaceangelsnetwork.com +1 (703) 282-4513

×