Seraphim Capital targets UK space tech unicorns

Author: EIS Release Date: Jul 20, 2021

Seraphim Capital, a London-based investment group focused on the Space sector, has invested £2 million into two UK companies – Isotropic Systems and Commodities AI – ahead of a space investment trust IPO.

 

Isotropic‘s flat panel antennas aim to deliver mesh networking satellite communications capabilities by connecting to any satellite in any orbit.

 

Seraphim states the flat panel antennas will be capable of creating a mesh network by simultaneously connecting to multiple different satellites in different orbits. It expects satellite connectivity – from the likes of OneWeb and SpaceX – to skyrocket 35 fold by 2027 fuelling a $400bn potential industry.

 

The company is based in Reading.

 

Commodities AI (“ChAI”) combines AI with satellite data (eg processing satellite imagery with freight information) to deliver price predictions for more than 30 different commodities. Commodity spend – namely buying raw materials – can account for up to 70% of revenues for major industries, highlights Seraphim.

 

It says ChAI makes it easier to identify the optimum time to buy key metal, agricultural, energy, and plastic materials – as well as carbon credits – by providing pricing predictions up to 6 months into the future.

 

ChAI is based in London.

 

“Isotropic Systems and Commodities AI are both fantastic additions to our portfolio,” said James Bruegger, Chief Investment Officer of Seraphim. “Both are great examples of the world-leading innovation within the space sector being developed from the UK.”

 

“We think both companies share common attributes in holding the potential to join another of our UK portfolio companies – Arqit – in becoming the next British space tech unicorns.”

 

IPO

Both of these new investments will form part of the portfolio of 19 companies that are due to be acquired by Seraphim Space Investment Trust PLC, which completed its IPO on Friday 9 July.

 

It raised £180m in what was an oversubscribed issue, according to initial reports, which have been confirmed by the company:

 

“Seraphim Space Investment Trust plc, a newly established closed-ended investment company which will invest in a diversified international portfolio of early and growth stage Space Tech businesses, is pleased to announce that it has successfully raised gross proceeds of approximately £178.4 million pursuant to the Initial Issue of its ordinary shares (“Ordinary Shares”) as described in the prospectus published by the Company on 22 June 2021.”

 

“The Capital Raise was oversubscribed with demand exceeding the target fundraise amount of £150 million. Accordingly applications were scaled back so that commitments under the Capital Raise equal the £150 million target amount.”