Seraphim Space Investment Trust PLC (LSE:SSIT) CEO and co-founder of Seraphim Space, Mark Bogget, talked with Proactive about the trust’s recent portfolio revaluation, performance momentum and the powerful defence spending tailwinds driving growth across the space technology sector.
Bogget explained that Seraphim Space operates three funds across the capital stack, with the publicly listed investment trust focused on growth-stage space technology companies at Series B, C and D rounds. Over the past decade, the firm has invested in 46 companies, producing nine unicorns, five IPOs and just four failures.
The recent uplift was driven by the trust’s four largest holdings, including ICEYE, which secured a €1.7 billion contract with the German government. Bogget described ICEYE as a “poster child in the defence space industry,” highlighting its radar satellite capability that can monitor “every square meter of Earth every hour,” regardless of weather or time of day.
He pointed to a structural shift in European defence policy, with governments committing significant new budgets and accelerating procurement processes. Companies such as Hawkeye 360 and D-Orbit have completed $150 million funding rounds at higher valuations, while UK-based All Space has also seen a significant revaluation.
Bogget said, “These companies are winning giant contracts. They’re moving very quickly. The market’s moving in their favor and that’s being recognised in our share price.”
With the trust trading around net asset value and operating at a premium, Bogget suggested further upside as defence-led demand continues to accelerate.
Proactive: Mark, very good to speak with you. For investors new to the story, what exactly is Seraphim Space Investment Trust and how does it give public markets investors access to private space tech companies?
Mark Bogget: We are an investment firm based in London but operating internationally. We launched the world’s first space investment fund ten years ago. We now have three funds investing in space, both public and private. We also run the largest global space accelerator program, working with university spinouts and early-stage teams, including former SpaceX teams, taking ten companies at a time through a three-month program.
We then have private venture funds investing at seed and Series A stage globally. The publicly listed Seraphim Space Investment Trust is our growth fund, investing in companies at Series B, C and D. These companies have largely proven technology and we invest to scale them. Over ten years, we’ve invested in 46 companies, produced nine unicorns, five IPOs and had just four failures.
Proactive: The four largest holdings delivered a combined £69 million uplift in the December quarter. What’s driving that rerating?
Mark Bogget: It’s a combination of macro changes and company execution. Europe has recognised it can no longer rely on the US for defence capability. NATO was historically funded 60% by the US, and now Europe has committed around €1 trillion in defence spending, with countries increasing NATO commitments to 5% of GDP.
Space plays a critical role in defence — launch, Earth observation, satellite communications and GPS. There has been a refocus away from large traditional defence companies toward more nimble, cutting-edge technology providers.
ICEYE, our largest holding, is an Earth observation company using radar satellites that can see every square metre of Earth every hour, day or night, in all weather. It secured contracts throughout the year, culminating in a €1.7 billion contract with the German government in December.
Hawkeye 360 and D-Orbit both completed $150 million funding rounds at higher valuations, reflecting growth and investor appetite. The fourth company, UK-based All Space, which develops multi-orbit, multi-satellite antennas for vehicles, has also seen a significant valuation increase, although it has not yet publicly announced the activity behind that uplift.
Overall, this reflects defence growth coming through in portfolio contracts and increased investor appetite.
Proactive: How has the investment trust been performing?
Mark Bogget: We’re one of the few trusts operating at a premium, hovering around our net asset value. Investors recognise that NAV is growing quickly and backward-looking valuations can become outdated quickly. These companies are winning giant contracts. They’re moving very quickly. The market’s moving in their favour and that’s being recognised in our share price.