Financiers Question Growth Rates and Exits for Space Investments | Space

PARIS — The satellite industry continues to attract investors excited by the potential returns, but financiers are scrutinizing the business plans, growth rates, and exit plans for investments in the sector.

Investors are being more cautious toward space-based investments right now, Chirag Kapadia, executive director, UBS, said during an investor panel at World Space Business Week. The panel gave insight into how financiers are looking at the market right now. Investors are focused on whether or not companies have a plan and a roadmap to revenue, he said.

“In terms of private equity in this industry, it is never easy. Most investors will talk about tech differentiation and ask, do you have a path to revenue?” Kapadia said. “I do think there are a lot of companies looking for investors right now. However, investors are being very cautious and selective.”

While the discussion of orbits, and Low-Earth Orbit (LEO) and Geostationary Orbit (GEO) gets a lot of attention within the space industry, investors are more focused on end markets such as mobility, maritime, and aero. “We find that is what gets investors comfortable,” he said.

Michael Pierre, managing director of Global Technology, Media and Telecom…

Source www.satellitetoday.com