Description
Haas School of BusinessUniversity of California, Berkeley EMBA ProgamThe Global Angel Investing SectorStatus and ProspectsDr. Burton H. Lee PhD MBAPrincipal and Co-founderJune 27, 2008 Space Angels Network Overview Angel Investing in the Global PE Marketplace USA, Europe, India What are Angel Investor Groups? Space Angels NetworkRationale, Market View and Investment Focus, Strategy Space Angels Network Goals for this Lecture
Haas School of Business
University of California, Berkeley EMBA Progam
The Global Angel Investing Sector
Status and Prospects
Dr. Burton H. Lee PhD MBA
Principal and Co-founder
June 27, 2008
Space Angels Network Overview
? Angel Investing in the Global PE Marketplace
? USA, Europe, India
? What are Angel Investor Groups?
? Space Angels Network
?Rationale, Market View and Investment Focus, Strategy
Space Angels Network Goals for this Lecture
? Tutorial on angel investor group business models
? Brief overview of the growing importance and variety of angel
investor groups in the US and internationally
? In-depth look at a new Sector-focused, National angel investor group:
? Space Angels Network LLC
Space Angels Network
Angel Investor Groups
Tutorial
Angel Organizations Fill Capital Gap
Stage Pre-Seed Seed/StartUp Early Later
Source
Founders, Friends and Family (FFF)
Individual Angels
Funding Gap between $300,000 and $2,000,000/$5,000,000 (depending on region)
Venture Funds
Investment
$25,000 to $100,000
$100,000 to $300,000
$2,000,000/$5,000,000 and up
Source: Angel Capital Association
5
Space Angels Network Angel Investor Group Business Models
? For-Profit vs Non-Profit
? ? ? ? ? ? ? ? ? ? USA: for-profit models dominate Europe: non-profit models most frequent, likely to shift to for-profit in future Russia: non-profit models most frequent India, China, Brazil and Other Countries: data not available Angel investor membership fees Entrepreneur application fees Corporate sponsorships Event sponsorships and fees National, regional and/or local government support Equity participation or Entrepreneur/Investor success fees
? Revenue Models
? Cost Models – Major expense categories
? Marketing to entrepreneurs and angel investors ? Staff (usually part-time) ? Operating/IT expenses
Space Angels Network Angel Investor Group Models ? Local / Regional Focus
? Silicon Valley/NoCal: ~20 angel groups ? Europe: promoted by EU and local governments for local economic development ? Investors’ need to remain engaged with nearby ventures
? Broad Investment Preferences are the norm
? Most angel groups invest across 3-5 domains: software, IT, semiconductor, cleantech, etc. ? Three sector-focused groups: Life Sciences Angels, Film Angels, Space Angels
? Rapid growth in new angel groups
? Silicon Valley/NoCal: 5-10 new groups this year expected
? Major growth potential
? Vast majority of angel investors do not belong to an angel investor group ? New business opportunity for entrepreneurs: start a new angel group!
? Confluence of social networks and investing
? Groups forming around many different themes: university alumni, sector-specific interests, women investors, regional economic development, personal networks
Investors Per Angel Group
40 35 30 25 20 15 10 5 0
2 to 10
11 to 25
26 to 50
51 to 75
76 to 100
101+
Average = 55 Median = 41
Source: 2008 ACA Confidence Survey
8
Space Angels Network
Angel Investing in the USA
2007
Total US Angel Population 2007:
258,200
Investment Preferences:
Sector Deals Software 27% Healthcare 19% Biotech 12% Retail 6% Media 5% Industrial & Energy 8%
$26.0 Bn in 57,100 Deals
Source: UNH CVR (2007)
Angel and VC Markets Are Large, Complementary
Late
Mostly later stage $26.0 Bn 57,100 deals Mostly seed & early stage
Angel Investment (2007) VC Investment (2007)
Sources: UNH CVR, NVCA
Early
3,912 deals $30.5 Bn
1,400 Seed & Early Stage Deals
Seed
ACA Membership: Networks and Funds
99 12 17
Angel Networks
Networks w/Sidecar Funds
Angel Funds
Full Members Provisional Members Investors in Operating Groups 123 12 ~6,000
12
Profile of A Typical US Angel Investor
• • • • • • • • Years investing Number of investments Total exits/ closures Years as entrepreneur Number ventures founded Age Percent of wealth in angel investing Education 9 10 2 14.5 2.7 57 10% Masters degree
13
Investment Preferences: 2007 - 2008
Biotechnology Business Products/ Services Computers & Peripherals Consumer Products/ Services Electronics/ Instrumentation Financial Services Healthcare Services Industrial/ Energy IT Services Media & Entertainment Medical Devices & Equipment Networking & Equipment Other Retail/ Distribution Semiconductors Software Telecommunications
~6,000 Angel Investors
0
10
20
30
40
50
60
70
80
14
90
Source: 2008 ACA Angel Group Confidence Survey
Percent of Groups
Space Angels Network
Angel Investing in Europe
2007
Total European Angel Population 2007:
75,000
Late
€4.0 Bn ~23,000 deals
Mostly later stage 5,920 deals €12.1 Bn
Early
Seed
Mostly seed & early stage
Angel Investment (2007) VC Investment (2007)
3,160 Seed & Early Stage Deals
Sources: EBAN, EVCA, Innovarium Ventures estimates
European Business Angel Network (EBAN)
3
Space Angels Network
European Business Angels Network (EBAN) • Location of members • July 2007
• ~300 angel networks identified • June 2008
Sources: EBAN
Space Angels Network Angel Investor Groups in Europe, by Country/Region - 2006 Country/Region France # Angel Groups 34 # Angel Investors ~2100
Italy Portugal Catalonia
Sweden Netherlands United Kingdom Germany
11 6 8
21 4 35 38
260 200 401
600 500+ 4620 ~1000
Sources: EBAN
EBAN Member Networks
Investment Preferences - 2006
Other sectors: environment, films, games, tourism, food, electronics, culture and security
Sources: EBAN
Space Angels Network Angel Investor Group Trends in Europe - 2008
?Major Trends
? Cross border investing is growing ? Sector-specific networks are appearing ? Syndication and co investment ? Collaboration with seed funds and VCs ? International collaboration ? Networks in mature markets receiving less support from regional or national authorities, and an increased share of budget from private sector sources ? Support from European funds is growing as new networks are being created in regions of Europe lagging behind the EU 15, i.e. Southern and Eastern Europe
Sources: EBAN
Space Angels Network Angel Investor Group Trends in Europe - 2008
? Major Constraints
?27 different legal and fiscal environments ?Very fragmented and diverse European angel market ?Stigma of failure and lower culture of risk than the USA ?Up-front fiscal incentives available only in France & the UK ?UK enterprise investment scheme is the most advantageous tax break scheme but only applies to investments in UK companies
Sources: EBAN
Space Angels Network
Angel Investing in India
2007
Space Angels Network Angel Investor Group Trends in India - 2008
? Little data available – highly anecdotal ? “Extremely nascent” - Angel investing is new phenomenon in India
? “Both entrepreneurs and investors are trying to figure it out” ? Initial funding in India comes from four primary sources:
? ? ? ? Family Individual business networks and connections Two angel groups (see below) 2-3 Seed stage funds
? DFJ-India, Canaan Partners-India and other funds
? Angel Investor Networks
? Mumbai Angels ? India Angels, Delhi (aka “Band of Angels”, founded 2005)
? Members: VC partners, corporate CEOs ? Areas of interest:
? IT products & services, Retail, Specialized BPO, Healthcare, Media and Entertainment ? Focus is on seed stage investments, typically in the Rs. 25 lacs to Rs. 2 crore range
Sources: DFJ India
Space Angels Network
a National network of accredited investors focused on seed- & early-stage aerospace-related investment opportunities
www.SpaceAngelsNetwork.com
Space Angels Network US Aerospace Innovation and Finance Pipeline
Chronic Structural Gap in Seed-stage Funding for Space-related Companies
Angel Investors And Networks
FFF
Seed
Early
Growth
Later Stage
Venture Capital
Angel Investors play a critical and growing role in the AeroSpace Innovation Ecosystem
Space Angels Network Structure of Angel Finance in US Commercial Space - 2007
$26.0 Bn 57,100 deals
258,200 Individual Investors
$24.1 Bn ~56,100 deals
Independent Angels
(252,200 Investors)
ACA Angel Networks
(6,000 Investors)
$1.9 Bn ~1,000 deals
~$10 Mn ~10 deals
~100 Active Space Angels
~ 100 Entrepreneurial Space Companies
Order of Magnitude
Source: UNH CVR/ACA/Innovarium Ventures estimates - 2008
Space Angels Network Virtual Solution – National Network
An online platform and Deal-making EcoSystem
Space Angel Space Angel Space Angel Space Angel Space Angel
Space Angel
Space Angel Space Angel Space Venture Space Angel Space Angel Space Angel
Space Angel
? 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
Space Angels Network
Market View and Investment Focus
Space Angels Network Major Market Trends
? Space-Information Technology convergence is primary driver
?Integrated telecommunications and imaging (Iridium, etc) ?Location-based services integrate imaging and telecom with GPS and RFID ?Desktop Google Earth, Microsoft Virtual Earth + migration to mobile platforms ?Commercial weather observation systems to replace government constellations ?Asset tracking and satellite-RFID applications coming to market ?Environmental sensing & climate change monitoring (CO2 emissions, C-trading)
? Space-Aviation convergence
?Combined aerial/space imagery (e.g. Google Earth, etc) ?Growing integration of hybrid technologies: aircraft, UAVs, LEO Sats, GEO Sats
? “Light Aviation” growth expected to be strong ? Asian Aviation boom (China, India) ? Space-Air Traffic Management System modernization - IP networks
Space Angels Network Major Aerospace Investment Opportunities: 2008 - 2020
Qualitative Ranking (Order of Magnitude)
Perceived Investor Risk
Space Tourism
Orbital Services
UAVs
Asian Aviation
Small Sats
Avionics
Air Sensors Taxis/ & VLJs
Satellite & UAV Applications
Imaging Navigation Telecom Asset Tracking Environment
Space Technologies
SATMS
$100Mn
$1Bn
$10Bn Market Size
$100Bn
$1Tn
Space Angels Network Opportunity: “AeroSpace”
The “AeroSpace Innovation Ecosystem” – A Broad Spectrum of Investment Opportunities
“Pure” Space
SpaceBased SatNav Asset Tracking Telemedicine Tourism
Space Components
SpaceRelated
Aerospace Robotics Avionics Sensors Materials
Aviation
Satellites Rockets Services
Avionics Sensors Lasers
Retail Web IT
Air Taxi UAV VLJ
Space-Air Traffic Management System Infrastructure
Space Angels Network Emerging Future Markets – Environmental Monitoring and Carbon Trading
? Emerging federal, state and global carbon emissions monitoring and trading policies and mechanisms will promote development of major new markets – and investment opportunities:
? Environmental monitoring
? Aerial-, space- and ground-based systems and sensor networks
? Environmental compliance and certification
? Corporate, government and non-profit facilities ? Residential units
? Regional environmental data collection/fusion, modeling, prediction and measures
? Water, weather, solar irradiance, etc ? Crop yields and famine prevention ? Disaster mitigation and prevention
? Estimated global market size (long-term): > $100 Bn per annum
Space Angels Network Major Space-related Investor Exits and Events: 2007 - 2008
? Scaled Composites (acquisition by Northrop Grumman)
? Aviation and space platform/composites manufacturer
? AeroAstro (merger with Radyne Corporation)
? Small satellites + telecommunications systems
? XCOR Aerospace (investment by Boston Harbor Angels)
? Payload Systems (acquisition by Aurora Flight Sciences)
? Space payloads + UAV manufacturer
? MicroSat Systems Inc. (acquisition by Sierra Nevada Corporation)
? Small satellites + electronics/sensors/IT/systems integration
? TerreStar (strategic investments by EchoStar, others)
? 4G integrated mobile satellite and terrestrial communications network
Space Angels Network Venture Capital and AeroSpace Investing
? Astrolabe Ventures, Palo Alto, CA & Paris, France
?Formerly known as Red Planet Capital, intended to be NASA-sponsored VC fund similar to CIA’s In-Q-Tel, shut down by White House ?Aerospace is one investment area of interest ?Raising two funds at present ?Stanford connection thru Peter Banks, General Partner
? Atrium Capital, Palo Alto, CA
?Aerospace and Defense interests
? E-Synergy Ltd, London, UK
?European Special Applications Fund, backed by ESA ( €5 Mn ) ?First €15 Mn raised, total fund size of €40 Mn is intended
? “Recent” space-related deals
?ProtoStar and New Enterprise Associates, Silicon Valley ?iOpener and Triangle Ventures, Germany
Space Angels Network
Strategy & Execution
Space Angels Network Strategic Relationships – Aimed at Deal Flow and Successful Exits
Local Angel Groups Federal S&T Agencies Space Prize Organizations State Space Authorities & Equity Funds Research Universities & Non-profit R&D Institutions Venture Capital Firms
Corporate M&A & Venturing Groups
Private Equity Investment Banks Hedge Funds
Deal Flow
Funds/Exits
Space Angels Network Deal Flow to Date – May 2008
? Satellite & UAV Applications (DVAS) Aprize Satellite GeoOptics Space Data Corporation ? Cleantech Assured Power ? Aviation and UAV Platforms & Services EvoLux Gotham Studios JIT Slipstream Linear Air R3 Scientific WheelTug Lumedyne ? Space Tourism Rocketplane Global ? Retail/consumer Air & Space TV Microgravity Enterprises Starport Café UP Aerospace
? Development stage: seed- and earlystage—from prototype development to early revenue ? Sectors: launch vehicles (space tourism, consumer collectibles), satellite applications, aircraft components, military/security, enterprise software, semiconductors, air taxis, unmanned aerial vehicles (UAVs), cable television, audio/video entertainment, retail, energy, telecommunications ? Business models: dual-use applications (terrestrial and space markets); aviation & space-only (consumer, enterprise, government) ? Capital requirements: ? $100,000 to $10 million ? Domicile: US, Canada, Europe
Space Angels Network
Key Takeaways
Space Angels Network Outlook for US Angel Investing Climate - 2008
? Space Angels Network first deal in 2008
? Expect to see new angel investors playing a role in space sector ? Continuing momentum in formation of new angel groups ? Angel groups will capture a larger share of investor market ? Mobile social networking will drive continuing integration of Internet w/ satellite applications ? Tighter coupling of angel investing with prizes programs ? Growing appreciation of importance of angel finance by US govt. ? Growing US-Europe angel investor connections
Space Angels Network
Questions and Discussion
For more information, please contact: Dr. Burton H. Lee PhD MBA [email protected] +1 (703) 282-4513
doc_900985322.pdf
Haas School of BusinessUniversity of California, Berkeley EMBA ProgamThe Global Angel Investing SectorStatus and ProspectsDr. Burton H. Lee PhD MBAPrincipal and Co-founderJune 27, 2008 Space Angels Network Overview Angel Investing in the Global PE Marketplace USA, Europe, India What are Angel Investor Groups? Space Angels NetworkRationale, Market View and Investment Focus, Strategy Space Angels Network Goals for this Lecture
Haas School of Business
University of California, Berkeley EMBA Progam
The Global Angel Investing Sector
Status and Prospects
Dr. Burton H. Lee PhD MBA
Principal and Co-founder
June 27, 2008
Space Angels Network Overview
? Angel Investing in the Global PE Marketplace
? USA, Europe, India
? What are Angel Investor Groups?
? Space Angels Network
?Rationale, Market View and Investment Focus, Strategy
Space Angels Network Goals for this Lecture
? Tutorial on angel investor group business models
? Brief overview of the growing importance and variety of angel
investor groups in the US and internationally
? In-depth look at a new Sector-focused, National angel investor group:
? Space Angels Network LLC
Space Angels Network
Angel Investor Groups
Tutorial
Angel Organizations Fill Capital Gap
Stage Pre-Seed Seed/StartUp Early Later
Source
Founders, Friends and Family (FFF)
Individual Angels
Funding Gap between $300,000 and $2,000,000/$5,000,000 (depending on region)
Venture Funds
Investment
$25,000 to $100,000
$100,000 to $300,000
$2,000,000/$5,000,000 and up
Source: Angel Capital Association
5
Space Angels Network Angel Investor Group Business Models
? For-Profit vs Non-Profit
? ? ? ? ? ? ? ? ? ? USA: for-profit models dominate Europe: non-profit models most frequent, likely to shift to for-profit in future Russia: non-profit models most frequent India, China, Brazil and Other Countries: data not available Angel investor membership fees Entrepreneur application fees Corporate sponsorships Event sponsorships and fees National, regional and/or local government support Equity participation or Entrepreneur/Investor success fees
? Revenue Models
? Cost Models – Major expense categories
? Marketing to entrepreneurs and angel investors ? Staff (usually part-time) ? Operating/IT expenses
Space Angels Network Angel Investor Group Models ? Local / Regional Focus
? Silicon Valley/NoCal: ~20 angel groups ? Europe: promoted by EU and local governments for local economic development ? Investors’ need to remain engaged with nearby ventures
? Broad Investment Preferences are the norm
? Most angel groups invest across 3-5 domains: software, IT, semiconductor, cleantech, etc. ? Three sector-focused groups: Life Sciences Angels, Film Angels, Space Angels
? Rapid growth in new angel groups
? Silicon Valley/NoCal: 5-10 new groups this year expected
? Major growth potential
? Vast majority of angel investors do not belong to an angel investor group ? New business opportunity for entrepreneurs: start a new angel group!
? Confluence of social networks and investing
? Groups forming around many different themes: university alumni, sector-specific interests, women investors, regional economic development, personal networks
Investors Per Angel Group
40 35 30 25 20 15 10 5 0
2 to 10
11 to 25
26 to 50
51 to 75
76 to 100
101+
Average = 55 Median = 41
Source: 2008 ACA Confidence Survey
8
Space Angels Network
Angel Investing in the USA
2007
Total US Angel Population 2007:
258,200
Investment Preferences:
Sector Deals Software 27% Healthcare 19% Biotech 12% Retail 6% Media 5% Industrial & Energy 8%
$26.0 Bn in 57,100 Deals
Source: UNH CVR (2007)
Angel and VC Markets Are Large, Complementary
Late
Mostly later stage $26.0 Bn 57,100 deals Mostly seed & early stage
Angel Investment (2007) VC Investment (2007)
Sources: UNH CVR, NVCA
Early
3,912 deals $30.5 Bn
1,400 Seed & Early Stage Deals
Seed
ACA Membership: Networks and Funds
99 12 17
Angel Networks
Networks w/Sidecar Funds
Angel Funds
Full Members Provisional Members Investors in Operating Groups 123 12 ~6,000
12
Profile of A Typical US Angel Investor
• • • • • • • • Years investing Number of investments Total exits/ closures Years as entrepreneur Number ventures founded Age Percent of wealth in angel investing Education 9 10 2 14.5 2.7 57 10% Masters degree
13
Investment Preferences: 2007 - 2008
Biotechnology Business Products/ Services Computers & Peripherals Consumer Products/ Services Electronics/ Instrumentation Financial Services Healthcare Services Industrial/ Energy IT Services Media & Entertainment Medical Devices & Equipment Networking & Equipment Other Retail/ Distribution Semiconductors Software Telecommunications
~6,000 Angel Investors
0
10
20
30
40
50
60
70
80
14
90
Source: 2008 ACA Angel Group Confidence Survey
Percent of Groups
Space Angels Network
Angel Investing in Europe
2007
Total European Angel Population 2007:
75,000
Late
€4.0 Bn ~23,000 deals
Mostly later stage 5,920 deals €12.1 Bn
Early
Seed
Mostly seed & early stage
Angel Investment (2007) VC Investment (2007)
3,160 Seed & Early Stage Deals
Sources: EBAN, EVCA, Innovarium Ventures estimates
European Business Angel Network (EBAN)
3
Space Angels Network
European Business Angels Network (EBAN) • Location of members • July 2007
• ~300 angel networks identified • June 2008
Sources: EBAN
Space Angels Network Angel Investor Groups in Europe, by Country/Region - 2006 Country/Region France # Angel Groups 34 # Angel Investors ~2100
Italy Portugal Catalonia
Sweden Netherlands United Kingdom Germany
11 6 8
21 4 35 38
260 200 401
600 500+ 4620 ~1000
Sources: EBAN
EBAN Member Networks
Investment Preferences - 2006
Other sectors: environment, films, games, tourism, food, electronics, culture and security
Sources: EBAN
Space Angels Network Angel Investor Group Trends in Europe - 2008
?Major Trends
? Cross border investing is growing ? Sector-specific networks are appearing ? Syndication and co investment ? Collaboration with seed funds and VCs ? International collaboration ? Networks in mature markets receiving less support from regional or national authorities, and an increased share of budget from private sector sources ? Support from European funds is growing as new networks are being created in regions of Europe lagging behind the EU 15, i.e. Southern and Eastern Europe
Sources: EBAN
Space Angels Network Angel Investor Group Trends in Europe - 2008
? Major Constraints
?27 different legal and fiscal environments ?Very fragmented and diverse European angel market ?Stigma of failure and lower culture of risk than the USA ?Up-front fiscal incentives available only in France & the UK ?UK enterprise investment scheme is the most advantageous tax break scheme but only applies to investments in UK companies
Sources: EBAN
Space Angels Network
Angel Investing in India
2007
Space Angels Network Angel Investor Group Trends in India - 2008
? Little data available – highly anecdotal ? “Extremely nascent” - Angel investing is new phenomenon in India
? “Both entrepreneurs and investors are trying to figure it out” ? Initial funding in India comes from four primary sources:
? ? ? ? Family Individual business networks and connections Two angel groups (see below) 2-3 Seed stage funds
? DFJ-India, Canaan Partners-India and other funds
? Angel Investor Networks
? Mumbai Angels ? India Angels, Delhi (aka “Band of Angels”, founded 2005)
? Members: VC partners, corporate CEOs ? Areas of interest:
? IT products & services, Retail, Specialized BPO, Healthcare, Media and Entertainment ? Focus is on seed stage investments, typically in the Rs. 25 lacs to Rs. 2 crore range
Sources: DFJ India
Space Angels Network
a National network of accredited investors focused on seed- & early-stage aerospace-related investment opportunities
www.SpaceAngelsNetwork.com
Space Angels Network US Aerospace Innovation and Finance Pipeline
Chronic Structural Gap in Seed-stage Funding for Space-related Companies
Angel Investors And Networks
FFF
Seed
Early
Growth
Later Stage
Venture Capital
Angel Investors play a critical and growing role in the AeroSpace Innovation Ecosystem
Space Angels Network Structure of Angel Finance in US Commercial Space - 2007
$26.0 Bn 57,100 deals
258,200 Individual Investors
$24.1 Bn ~56,100 deals
Independent Angels
(252,200 Investors)
ACA Angel Networks
(6,000 Investors)
$1.9 Bn ~1,000 deals
~$10 Mn ~10 deals
~100 Active Space Angels
~ 100 Entrepreneurial Space Companies
Order of Magnitude
Source: UNH CVR/ACA/Innovarium Ventures estimates - 2008
Space Angels Network Virtual Solution – National Network
An online platform and Deal-making EcoSystem
Space Angel Space Angel Space Angel Space Angel Space Angel
Space Angel
Space Angel Space Angel Space Venture Space Angel Space Angel Space Angel
Space Angel
? 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
Space Angels Network
Market View and Investment Focus
Space Angels Network Major Market Trends
? Space-Information Technology convergence is primary driver
?Integrated telecommunications and imaging (Iridium, etc) ?Location-based services integrate imaging and telecom with GPS and RFID ?Desktop Google Earth, Microsoft Virtual Earth + migration to mobile platforms ?Commercial weather observation systems to replace government constellations ?Asset tracking and satellite-RFID applications coming to market ?Environmental sensing & climate change monitoring (CO2 emissions, C-trading)
? Space-Aviation convergence
?Combined aerial/space imagery (e.g. Google Earth, etc) ?Growing integration of hybrid technologies: aircraft, UAVs, LEO Sats, GEO Sats
? “Light Aviation” growth expected to be strong ? Asian Aviation boom (China, India) ? Space-Air Traffic Management System modernization - IP networks
Space Angels Network Major Aerospace Investment Opportunities: 2008 - 2020
Qualitative Ranking (Order of Magnitude)
Perceived Investor Risk
Space Tourism
Orbital Services
UAVs
Asian Aviation
Small Sats
Avionics
Air Sensors Taxis/ & VLJs
Satellite & UAV Applications
Imaging Navigation Telecom Asset Tracking Environment
Space Technologies
SATMS
$100Mn
$1Bn
$10Bn Market Size
$100Bn
$1Tn
Space Angels Network Opportunity: “AeroSpace”
The “AeroSpace Innovation Ecosystem” – A Broad Spectrum of Investment Opportunities
“Pure” Space
SpaceBased SatNav Asset Tracking Telemedicine Tourism
Space Components
SpaceRelated
Aerospace Robotics Avionics Sensors Materials
Aviation
Satellites Rockets Services
Avionics Sensors Lasers
Retail Web IT
Air Taxi UAV VLJ
Space-Air Traffic Management System Infrastructure
Space Angels Network Emerging Future Markets – Environmental Monitoring and Carbon Trading
? Emerging federal, state and global carbon emissions monitoring and trading policies and mechanisms will promote development of major new markets – and investment opportunities:
? Environmental monitoring
? Aerial-, space- and ground-based systems and sensor networks
? Environmental compliance and certification
? Corporate, government and non-profit facilities ? Residential units
? Regional environmental data collection/fusion, modeling, prediction and measures
? Water, weather, solar irradiance, etc ? Crop yields and famine prevention ? Disaster mitigation and prevention
? Estimated global market size (long-term): > $100 Bn per annum
Space Angels Network Major Space-related Investor Exits and Events: 2007 - 2008
? Scaled Composites (acquisition by Northrop Grumman)
? Aviation and space platform/composites manufacturer
? AeroAstro (merger with Radyne Corporation)
? Small satellites + telecommunications systems
? XCOR Aerospace (investment by Boston Harbor Angels)
? Payload Systems (acquisition by Aurora Flight Sciences)
? Space payloads + UAV manufacturer
? MicroSat Systems Inc. (acquisition by Sierra Nevada Corporation)
? Small satellites + electronics/sensors/IT/systems integration
? TerreStar (strategic investments by EchoStar, others)
? 4G integrated mobile satellite and terrestrial communications network
Space Angels Network Venture Capital and AeroSpace Investing
? Astrolabe Ventures, Palo Alto, CA & Paris, France
?Formerly known as Red Planet Capital, intended to be NASA-sponsored VC fund similar to CIA’s In-Q-Tel, shut down by White House ?Aerospace is one investment area of interest ?Raising two funds at present ?Stanford connection thru Peter Banks, General Partner
? Atrium Capital, Palo Alto, CA
?Aerospace and Defense interests
? E-Synergy Ltd, London, UK
?European Special Applications Fund, backed by ESA ( €5 Mn ) ?First €15 Mn raised, total fund size of €40 Mn is intended
? “Recent” space-related deals
?ProtoStar and New Enterprise Associates, Silicon Valley ?iOpener and Triangle Ventures, Germany
Space Angels Network
Strategy & Execution
Space Angels Network Strategic Relationships – Aimed at Deal Flow and Successful Exits
Local Angel Groups Federal S&T Agencies Space Prize Organizations State Space Authorities & Equity Funds Research Universities & Non-profit R&D Institutions Venture Capital Firms
Corporate M&A & Venturing Groups
Private Equity Investment Banks Hedge Funds
Deal Flow
Funds/Exits
Space Angels Network Deal Flow to Date – May 2008
? Satellite & UAV Applications (DVAS) Aprize Satellite GeoOptics Space Data Corporation ? Cleantech Assured Power ? Aviation and UAV Platforms & Services EvoLux Gotham Studios JIT Slipstream Linear Air R3 Scientific WheelTug Lumedyne ? Space Tourism Rocketplane Global ? Retail/consumer Air & Space TV Microgravity Enterprises Starport Café UP Aerospace
? Development stage: seed- and earlystage—from prototype development to early revenue ? Sectors: launch vehicles (space tourism, consumer collectibles), satellite applications, aircraft components, military/security, enterprise software, semiconductors, air taxis, unmanned aerial vehicles (UAVs), cable television, audio/video entertainment, retail, energy, telecommunications ? Business models: dual-use applications (terrestrial and space markets); aviation & space-only (consumer, enterprise, government) ? Capital requirements: ? $100,000 to $10 million ? Domicile: US, Canada, Europe
Space Angels Network
Key Takeaways
Space Angels Network Outlook for US Angel Investing Climate - 2008
? Space Angels Network first deal in 2008
? Expect to see new angel investors playing a role in space sector ? Continuing momentum in formation of new angel groups ? Angel groups will capture a larger share of investor market ? Mobile social networking will drive continuing integration of Internet w/ satellite applications ? Tighter coupling of angel investing with prizes programs ? Growing appreciation of importance of angel finance by US govt. ? Growing US-Europe angel investor connections
Space Angels Network
Questions and Discussion
For more information, please contact: Dr. Burton H. Lee PhD MBA [email protected] +1 (703) 282-4513
doc_900985322.pdf