Investing in space-related technologies may be risky, but the payoffs can also be phenomenal beyond cash returns – with further potential spinoff benefits in the terrestrial arena, SpaceFund Founder and Managing Partner Meagan Crawford told IFN Investor.
Operating this early-stage venture capital firm since 2018, Meagan said valuations of investments made with the firm’s first US$1 million fund have risen around 300% while those in the second US$15 million fund have seen a 30% increase so far.
“Including SPVs, we have invested around US$20 million in catalyzing space revolution initiatives.” The most prominent so far of its 21 portfolio entities would be SpaceX, while the startup Made in Space has been acquired by Redwire.
The third round of US$100 million fundraising by SpaceFund is currently in progress with the expectation of closing by the end of this year and 2025 will see the next fund raising up to US$1 billion. “We will likely seek Shariah certification for the next fund.”
Meagan explained there were several reasons why SpaceFund did not go the Islamic route earlier, with the foremost being that many enterprises within the space industry also handled the development and production of weaponry – which is barred for both Shariah and ethical compliance.
There has been a clear separation over the last decade, especially with private launch achievements by SpaceX, noted Meagan, as newer outfits are focused solely on satellite technology and pure space play – with no links to drones nor intermingled with the defense side of things.
Another reason for not seeking Shariah certification earlier was simply because SpaceFund was seen as too small a player on the investment landscape.
“We have been supported by wealthy individuals and family offices so far, because institutional investors work in the hundreds of millions. Next year’s fund would be more within their appetites and that’s also why we’re exploring the Shariah route, given the interest from the Middle East.”
As one of the pioneering investors in this rarefied asset class, SpaceFund is eyeing more startup investments with its boosted cash availability beyond its current focus in the Americas.
Meagan said this is due to clear spinoff benefits like the monitoring of watering and fertilizer deployment using infrared tracking from space being far more efficient than ground-based systems. SpaceFund is also committed to new space launch technologies which are far less wasteful of fuel.
Another example is aeroponic technology developed with NASA support that was used on the International Space Station – which is now being deployed in empty office spaces that weren’t able to attract tenants after the pandemic, creating a new urban economic resource.
With its track record or being able to better understand the potentials of space-focused startups, SpaceFund is also drawing in co-investors. Meagan said this development is very positive for the industry as a whole.
“At the time I started SpaceFund, the industry was tracking 1,000 to 2,000 space startups. I am tracking 10,000 to 20,000 space startup companies around the world right now. I expect that in another 10 years, that will be 100,000.
“I’m hoping to have enough resources to keep up with what’s going on. This is an absolute amazing time to be in the space industry.”
