Assessing an opportunity in space RF hardware for an investment fund

As the commercial applications of space continue to expand, the space hardware market is experiencing rapid growth. However, for investors looking to enter this dynamic market, it is crucial to consider several factors before making a move. In response to a venture capital fund seeking to invest in a space manufacturer with a strong intellectual property portfolio, we undertook an assessment to address these important considerations.

In today’s fast-paced space race, encompassing scientific, commercial, and military endeavours, the development of space hardware plays a pivotal role. This flourishing market has attracted interest from investors worldwide, eager to capitalise on the opportunities it presents. Nonetheless, making the right investment requires meticulous analysis. Consequently, a venture capital fund, exploring the potential of a start-up with advanced manufacturing capabilities in RF products, sought the expertise of Novaspace to conduct comprehensive commercial due diligence.

To fulfil this task, we conducted an in-depth analysis encompassing several key components. Our examination encompassed the market potential of the target sectors, the intricacies of the supply chain and sales pipeline, as well as a thorough understanding of the characteristics and requirements of the start-up’s key customers. Additionally, we scrutinised various market dynamics that could either fortify or undermine the company’s position within the industry.

In conjunction with these aspects, we also emphasised two critical elements. First and foremost were the challenges confronting the target start-up, particularly concerning manufacturing, validation, and standardisation hurdles. Secondly, we delved into the existing technological landscape and identified trends that could potentially impact the market segment of interest. This involved identifying alternative technologies that could pose a threat to the start-up’s portfolio.

The comprehensive evaluation of the investment’s advantages and disadvantages received positive feedback from the client. Armed with the insights and information we gathered, they were able to make an informed decision to proceed and invest in the start-up.

© 2024 SpaceTec Partners