In April 2018, CNES (the French “NASA”) chose CapDecisif Management to manage a new investment fund dedicated to NewSpace and all related applications.
CapDecisif Management has been selected amongst many investment teams, for their strong track record in the Technology and Digital industries and the company’s excellent performance.
CosmiCapital will be operational in 2019. With a target of €100 million, the fund will invest in startups of the NewSpace ecosystem in Europe, focusing mainly on digital applications (companies operating innovative services from the immense wealth of space data), as well as on core industry applications (constellations of small satellites, micro-launchers, etc.).
The fund will focus on several stages, from seed to growth capital with investments of between €1 million and €10 million for 20 to 25 European startups.
CNES, committing more than €5 million in the fund, will provide technical expertise on projects analysis and give the startups in the portfolio premium access to its resources (licenses, technology platforms, laboratories, etc.), global network of clients and partners.
The space industry has historically been a government activity accessible only to large corporates. But NewSpace is taking private entrepreneurs into orbit thanks to a drastic reduction in costs, driven in particular by the miniaturisation of technologies, new production volumes and new materials.
This booming industry represents a tremendous opportunity for entrepreneurs and investors. Today’s space industry is a $350 billion market and, according to all the market studies published in 2017 (source: Morgan Stanley and BofA Merrill Lynch), it is expected to exceed $1 trillion over the next 20 years. Investors now see it as a real source of long-term growth, as demonstrated by the record fundraising in NewSpace in 2017, with more than $2.5 billion invested worldwide in private funds (source: Bryce Space and Technology).
The market’s exponential growth is explained in part by growing demand from users for new services using and reprocessing space-derived data. This big data holds huge potential value for companies and ultimately users, and is the market’s underlying source of growth.
The NewSpace dynamic may have been initiated by SpaceX in the United States in the 2000s, but Europe is in full development with a booming NewSpace ecosystem. France is doing particularly well, as highlighted by the recent fundraising events in September by Exotrail (€3.5m) which specialises in electric propulsion solutions for small satellites, Unseenlabs (€7.5m) a maritime satellite surveillance specialist, and Kayrros (€21m) a company capable of estimating the oil production of the United States in real time by observing the pace of drilling through satellite images, and which is now looking to tackle the renewable energy markets.
CosmiCapital is now ready to explore NewSpace, the new digital frontier!.