Seraphim Space Investment Trust PLC (LSE:SSIT, FRA:75N) has made its first investment since its initial public offer, with an extra US$25mln invested into portfolio company Isotropic Systems.
Isotropic Systems, a developer of broadband terminal technologies for the satellite communications market, was carrying out a US$35mln Series B funding round, led by the trust’s investment manager.
Isotropic greatly increased its valuation in this funding round, with an implied net asset value uplift of 172% to the £1.41m valuation of the trust's existing stake in Isotropic at the time of July’s IPO.
James Bruegger, Seraphim's chief investment officer, has also been appointed to the Isotropic board.
With the likes of Elon Musk’s SpaceX and UK government owned OneWeb already deploying constellations of thousands of satellites to deliver high speed broadband connectivity from space, the investment trust said satellite connectivity is expected to become a US$400bn industry by 2027, but that maintaining cost-effective and flexible connections to all these satellites is “a major bottleneck” for the sector.
Seraphim Space said Isotropic is looking to “redefine satellite communications” with its patented radio frequency optics technology that enables ground antenna to simultaneously connect to multiple satellites in multiple orbits without any compromise in the performance of each link, which could enable aircraft, ships, trains, buses and even cars to benefit from broadband satellite connectivity.
“Isotropic is a prime example of why Seraphim Space has listed on the London Stock Exchange,” said Bruegger.
“We now have the financial firepower to double down with conviction on our highest potential investments. With its unparalleled ability to simultaneously connect to satellites in different constellations and different orbits, we believe that Isotropic has the technology that will help unlock massive potential growth within the satellite communications market. We are delighted to be stepping up our support for this exciting business as it enters a critical phase in its development.”
He added that Seraphim Space, which has seen its share price surge 27% higher since listing, has “multiple” other transactions that are expected to close in the near term.