Seraphim’s investment portfolio boosted by space startup funding rounds

Seraphim Space Investment Trust (SSIT) witnessed a 1.4% increase in the total value of early-stage space investments, reaching 201 million pounds (7 million). Despite facing a setback from Astroscale’s discounted IPO on June 5, the London-listed trust managed to maintain its growth.

Astroscale’s decision to sell shares at a 40% discount compared to a private financing round last year led SSIT to reduce the valuation of its interest in the venture. Nonetheless, this adjustment only represented a small fraction of the trust’s investment portfolio.

Furthermore, the trust also marked down the value of its interest in AST SpaceMobile following share price declines but saw a rebound after securing a commercial agreement with U.S. telco AT&T. This positive development led to an increase in the stock price of AST SpaceMobile by more than 92% since the beginning of the year.

Despite the disappointing IPO of Astroscale, SSIT’s CEO Mark Boggett highlighted the oversubscription it received, indicating the market’s interest in space-related companies. Additionally, Astroscale’s shares performed well after the debut, bringing the trust’s holding close to its previous fair value.

Astroscale is the fourth SSIT investment to go public since the trust’s IPO in July 2021, demonstrating the growing public market appetite for space companies. The trust’s top holdings include Iceye, D-Orbit, All.Space, HawkEye 360, LeoLabs, SatVu, Xona Space Systems, Astroscale, PlanetWatchers, and Tomorrow.io.

Notable funding rounds by D-Orbit and Xona Space Systems contributed to SSIT’s overall fair value gain, along with positive developments in currency exchange rates and the valuation of its investment in Spire Global.

The trust’s portfolio is well-funded for the next 12 months, with 61% fully funded. In an effort to focus on more mature growth assets, SSIT sold its stakes in nine companies to Seraphim Space Ventures II, a new 0 million fund. This strategic move aims to ensure that the trust has the necessary cash reserves to meet funding requirements for the year ahead and beyond.

With a positive outlook for the portfolio in 2024 and 25.7 million pounds in cash reserves reported as of March 31, SSIT remains optimistic about its investment prospects in the space industry.