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SPACE INVESTMENT QUARTERLYQ3 2017The most comprehensive market intelligence – from the investors at the forefront

Dear Reader,

Founded in 2007, Space Angels has been at the forefront of early-stage space investing for over 10 years. Operating as an angel fund and a venture capital fund, we are focused exclusively on the entrepreneurial space sector. Due to our unique position in the marketplace, we have access to the most comprehensive public and private market transactions, which we have aggregated here to provide context and intelligence on space investment and market trends. The Space Investment Quarterly is based on Space Angels' proprietary database, focused on non-government equity investment in commercial space ventures.

In 2009, the world was just beginning to feel the significant impacts of the global financial crisis. That same year, a little-known rocket company launched their first successful commercial payload and in doing so, ushered in what we like to call the “Entrepreneurial Space Age.” With that launch, SpaceX significantly lowered the barriers to entry in the space industry. By vertically integrating, the company was able to drastically reduce the cost to get to orbit. But what deserves at least as much credit is their decision to publish their pricing, which fundamentally changed the way we do business in space. This transparency enabled would-be space entrepreneurs to develop a business plan and raise equity financing based on those cost assumptions.

With SpaceX now regularly launching and landing rockets, Jeff Bezos selling $1 billion of his Amazon stock each year to invest in his space company Blue Origin, and an increasing number of top-tier venture capital firms investing in space such as Sequoia’s recent investment in Vector, this is a very exciting time for the space industry. This quarterly report will give you the intelligence you need to make sense of this dynamic new sector. Your access to smart space investing starts here.

Sincerely,

Chad Anderson, CEO

"Of the nearly 250 space ventures that have received non-government equity funding, 88% were funded since 2009, the dawn of the Entrepreneurial Space Age."

19831969 2009

US

A

Asi

a

EU

UK

So

uth

Am

eric

a

Au

stra

lia

No

rth

Am

eric

a

2010 2011 2012

2009 2010

2013 2014 2015 2016 2017SEP.

250

Number of Companies Receiving investment(1)

Investment in Space(1)

AnnualInvestment(2)

$2

$6

$10

$12 BILLION

SpaceX first successful launch of commercial payload

Enterpreneurial Space Age

SpaceX published launch prices enabledbrokerage services

2012SpaceX Dragon becomes first commercial space vehicle to berth with Space Station

2014NanoRacks launches commercial operations via ISS

2015Blue Origin demonstratesreusable rockets

DAWN OF THE ENTREPRENEURIAL SPACE AGEEQUITY INVESTMENTS FROM 2009 TO PRESENT

$0

$2

$4 BILLION

Governmental Space Age

1969Apollolanded onthe moon

Satellites

118 Companies$4,880 M

7 Companies$5,101 M

Launchers& Landers

51 Companies$504.9 M

In-Space Biosphere

6 Companies$115.9 M

In-Space Industrials

4 Companies$82.8 MPlanetary

Markets

17 Companies$113.5 MIn-Space

Logistics

6 Companies$53.9 MIn-Space

Information & Research

31 Companies$8.7 M

Media &Education

Source Space Angels

(1) Upper charts represent cumulitave non-governmental equity investment(2) Lower chart represents annual non-governmental equity investment by investor type

50

150

Angels

Corporate

Other

Venture Capital

© Space Angels 2017

Investor Type

Amount by Stage& Number of Deals

Numberof Deals

Total YTD

YTD EQUITY INVESTMENTS(1)

(1) YTD through September 2017(2) Self-Finance: Non-traditional investments from Jeff Bezos, Robert Bigelow, Richard Branson, and Elon Musk, who we have classified as angel investors providing large investments (hundred of millions) in their own companies during unclassified rounds.

Angels Corporate Other48% 7%

Venture Capital44%

$2.03 BILLION

0%

Source Space Angels

Investment Amount by Sector

$519 M

Satellites

51

$20 M

Planetary Markets

1

$47 M

In-Space Logistics

3

$10 M

In-Space Information & Research

1

$21.5 M

In-Space Industrials

3

$4.3 M

In-Space Biosphere

2

$1,405 M

Launchers& Landers

12

$1 M

Media &Education

4

0.2 BILLION

1 BILLION

Seed

Serie

s A

Serie

s B

Serie

s C

Serie

s D

Serie

s E

Self-

Fina

nce(2

)

Oth

er

42 158

2

2

1

1

6

LOREM IPSUM

© Space Angels 2017

TABLE 1: SPACE ANGELS SELECT INVESTMENTS

YTD 2017 SINCE 2009

Space Angels has completed 10 transactions year-to-date across a variety of market segments including remote sensing, satellite communication, deployable structures, ground stations, and commercial space station services.

COMPANY ROUND ROUND SIZE MONTH

Ardusat Series A $455k JanuaryBridgeSat Series A Undisclosed JulyIceye Series A $13M FebruaryOxford Space Syst. Bridge $1.5M JuneATLAS Space Bridge Round Undisclosed JuneAnalytical Space Seed $3.5M SeptemberNanoRacks Conv. Notes Undisclosed September

Stealth Start Up Seed Undisclosed Undisclosed

TABLE 2: SELECT MARKET FUNDINGCOMPANY ROUND AMOUNT MONTH

Blue Origin Self-Finance $941M MaySpaceX Series H $325M JulyKacific Series B $125M FebruaryRocket Lab Series D $75M MarchKymeta Series E $73M AprilOrbital Insight Series C $62.5M MaySwift Navigation Series B $34M June

Descartes Labs Series B $30M August

Satellogic Series B $27M June

Vector Series A $21M June

Moon Express Series B $20M September Satellites Information & Research Launchers & Landers

Space General VC

CUMULATIVE EXITS BY SETOR

30Billions

23

15

8

2009 2010 2011 2012 2013 2014 2015 2016 20170

TABLE 3: NOTEABLE EXITS

MDA’s acquisition of DigitalGlobe is the second-largest acquisition in the satellite industry over the past 20 years, behind only Harris’ $3B acquisition of Exelis in 2015. Looking ahead, Northrop Grumman has agreed to buy Orbital ATK for $7.8 billion in cash and will assume $1.4 billion in outstanding debt. This deal is expected to close in the first half of 2018.

SELLER BUYER AMOUNT MONTH

DigitalGlobe MDA $2.4B FebruaryE2V Teledyne $789M MarchThuraya China Trends $195M JanuaryAvio IPO $100M AprilNorsat Intl Hytera $67M JuneUltisat Speedcast $75M JulyInthinc Orbcomm $35M June

Coleman Aerojet Rocketdyne $15M February

OmniEarth EagleView N/A April

AVERAGE EXIT AMOUNT BY SECTOR

$600

$500

$400

$300

$200

$100

In-Space Information &

Research

Satellites Launchers &Landers

Media &Education

In-Space Industrials

0

Millions

Seed and Series A space investment are in-line with the broader venture industry. Early indications suggest that later stage rounds are similar in size, but the total sample is still small.

Exits have primarily come from the Satellite segment as this is an established, existing market with many potential acquirers as incumbents look to startups for innovation.

The satellite industry is the most developed generating 28 exits since 2009. In-space Information & Research is the smallest dataset with only one exit, Wyle Laboratories in 2016.

AVERAGE ROUND SIZE

120

100

80

60

40

20

Seed Series A Series B Series C Series D0

Millions

TRANSACTION OVERVIEW

NUMBER OF VCS INVESTING IN SPACE 100

80

60

40

20

2009 2010 2011 2012 2013 2014 2015 2016 20170

© Space Angels 2017

Since 2011, the number of VCs making investments in the space sector has grown significantly. Firms such as Sequoia, Bessemer, DFJ, and RRE have all made space investments.

Jeff Bezos' commitment to self-finance Blue Origin represents the largest investment year-to-date. Venture activity has shown a meaningful increase across Series A and B, driven in part by Sequoia, Bessemer, and Promus' investmetns in launch systems. US companies have secured over 88% of all capital deployed this year.

MARKET DRIVERS

Source Space Angels

Weight Class Mass (kg)

(1) Commercial: Launch vehicle developed with risk capital by a profit-seeking company to serve commercial and government customers(2) Governmental: Launch vehicle developed under contract funded by a state-owned entity, government agency, military, or similar

SEP.

2017

41

28

15

35

55

2010 2011 2012 2013 2014 2015 2016

Commercial(1) vs Governmental(2) Launches

Launches & Satelitteslaunched by country

Number of Satellites Launched by Weight & Function

Earth observation

Navigation

Astronomy

N/A

Missile warning

ISS Logistics

Research

Technology demonstration

Reconnaissance179

5

85

41

29

4

3

137

5

26

10 9 96

10083

17 15 6

3

3 2 4

1

1

1

118

1

152

40

1

17

Large Medium Mini Micro Nano>1000 500 to 1000 100 to 500 10 to 100 1 to 10

India USA Russia France China Japan

Communications

74

30 3 929N/A

3

N/A1

N/A1

N/A3

1

1

3

5

4

4

9

© Space Angels 2017

Terrestrial

Cis-lunar

Deep Space

Mars

Moon

Satellites

Launchers& Landers

In-Space Biosphere

In-Space Industrials

Planetary Markets

In-Space Logistics

In-Space Information & Research

Media &Education

Technology Readiness Level(2)

Total Investmentby sector

$8.7 M

$504.9 M

$115.9 M

$53.9 M

$113.5 M

$5,101 M

$82.8 M

$4,880 M

Source Space Angels

(1) Market segmentation methodology and DEFINITIONS AVAILABLE (2) Technology Readiness Level: Measures the maturity of technology based on NASA definitions.

THE SPACE ECONOMYDYNAMIC MARKET SEGMENTATION(1)

HERE.

© Space Angels 2017

As we reach the end of 2017, we believe that the commercial space industry will set new records across investments, exits, and launches. These strong fundamentals have us extremely optimistic for about the future and the continued growth of the commercial space industry. We continue to see high quality investment opportunities across all market segments and expect to close the year completing a record number of investments. Our por tfol io companies have made tremendous accomplishments this year.

Select Portfolio Successes

— Planet launches satellite constellation to image the whole earth daily — Vector Space Systems raises $21M Series A led by Sequoia— World View completes 5-day test flight for Stratollite balloon— Astrobotic has struck a deal with United Launch Alliance to launch its Peregrine lunar lander to the moon on an Atlas 5 rocket in 2019— Planetary Resources And The Government Of Luxembourg Announce €25 Mill ion Investment And Cooperation Agreement— Accion Systems partners with York Space to collaborate on propulsion system— NanoRacks partnering with Boeing to produce first commercial airlock for the International Space Station— BridgeSat partners with AstroTerrace to develop an optical communication system for Japan’s Engineering Test Satellite 9

Additional Resources

— Space Angels has launched a podcast with the aim of helping investors gain insight into the opportunities and risks of early-stage space investing. Space Angels interviews influential CEOs of space companies in each episode to better understand their bold plans to create a future with millions of people living and working in space. You can listen on the Space Angels website or on iTunes.

— Space Angels Information Central provides a way to dig deeper into entrepreneurial space—including the major industries, the innovative technologies, the public-private partnerships. — Space Angels Weekly News Roundup: Each week the Space Angels team rounds up the leading news of the week, in an easy to read newsletter. Subscribe at the Space Angels website.

There’s never been a better time to get involved in commercial space. If you’re ready to start investing in private space companies, we invite you to apply for membership at spaceangels.com.

© Space Angels 2017