Orbital Innovation As space evolves from a government preserve to a trillion-dollar industry, Seraphim Space's Mark Boggett explains why UK entrepreneurs have a unique opportunity to shape the future of space technology.

In 2015, Mark Boggett saw an opportunity that most investors overlooked: the commercial space industry. At the time, the space sector was still the domain of governments and defense contractors. Space exploration was viewed as a costly, niche field - one far removed from Silicon Valley's fast-paced tech scene. But Boggett and his team at Seraphim Space saw things differently.

"When we launched Seraphim, space was still largely seen as the preserve of governments and defense primes," Boggett recalls. "But we saw the early signals of a seismic shift. Launch costs were falling by an order of magnitude, satellites were becoming smaller and cheaper, and a new wave of entrepreneurs were bringing Silicon Valley-style innovation into orbit."

Seraphim's conviction stemmed from a belief that space was destined to be the foundation of a new, digital economy. "Our conviction was that space would evolve into a foundational layer of the digital economy, enabling everything from global connectivity, defense and security, and climate resilience," Boggett says. In 2015, this vision seemed audacious. Yet today, space is at the very core of technological advancement and is rapidly becoming one of the world's most valuable industries.

The Growth of SpaceTech
Fast forward to 2023, and the space economy is now valued at an impressive $600bn, with projections suggesting it could surge to $1.8tn by 2035. This rapid expansion is driven by a variety of factors - reduced costs for launching satellites, innovations in data processing, and government investment.

"We're proud that Seraphim has backed more than 140 companies across that ecosystem, from early-stage start-ups to some of the fastest-scaling companies from across the globe," Boggett says. Seraphim's strategy is simple: Invest in visionary founders and help them scale their technologies. From AST Space Mobile to ALL.SPACE, Seraphim has been a catalyst for growth in companies solving real-world problems at a planetary scale. Many of Seraphim's investments have far exceeded expectations. AST Space Mobile, for instance, is working to deploy cell towers in space. Valued at a staggering $150bn, the company is redefining global connectivity. "These aren't just commercial wins, they're examples of space solving real-world problems at scale," Boggett emphasizes.

Meanwhile, ICEYE, which started as a small radar-focused start-up, is now a leader in global Earth observation. The company has secured government contracts worth hundreds of millions, offering vital real-time data for everything from climate monitoring to national defense. "ICEYE is now a market leader globally securing government contracts in $100m's," Boggett adds.

Dramatic Shifts in Space Technology
Seraphim's investments have tracked some of the most significant turning points in the space sector. For Boggett, three developments stand out as particularly game-changing: cost reduction, miniaturisation of satellites, and the data revolution. "Dramatic cost reductions - the cost to orbit has fallen more than 10x in the past decade, thanks to reusability and private launch providers," says Boggett. SpaceX's pioneering work in reusable rockets has brought the cost of launching payloads to a fraction of what it once was. What's more, launch cadence is now every 34 hours, drastically improving the efficiency of global space operations.

"Constellations of smallsats can now deliver real-time data on everything from climate to defense," Boggett explains. Thanks to innovations in small satellite technology, companies can deploy entire constellations of these miniature spacecraft to provide high-resolution data on a global scale. "Large low constellations, delivering high-resolution digital data," says Boggett, underlining the scale and impact of this new wave of technology.

Most importantly, however, is the data revolution. Space-derived data has become core digital infrastructure. "Cloud and edge processing have unlocked the value of space-derived data, making satellites core digital infrastructure," Boggett notes. As AI and quantum technologies continue to advance, the value of space data will only increase, unlocking entirely new business opportunities and applications. "Now AI and next Quantum will take this dataset to the next level," he adds, pointing to the endless possibilities that space-derived data will offer in sectors ranging from agriculture to national security.

The Changing Dynamics of Investment in SpaceTech
As the space sector has evolved, so too has Seraphim's approach to investment. The fund has built its portfolio across a broad spectrum, from early-stage innovators to mature companies scaling globally. "Our strategy is to identify visionary founders and back them through critical inflection points, while also supporting mature companies scaling globally," Boggett explains.

Seraphim is not just a source of funding - it's an active participant in the growth of its portfolio companies. "We're hands-on investors, not just financiers," says Boggett. Seraphim supports its companies through initiatives like Seraphim Space Accelerator, which helps businesses refine their models, connect with industry players, and scale effectively. For Boggett, it's not enough to simply invest in promising technologies. The key is to support the founders and companies every step of the way. "To help refine their models, connect with government and industry, and accelerate growth," he explains.

Navigating Market Volatility
Being a publicly listed investment trust brings its own set of challenges, particularly during periods of market volatility. In a sector like space, which is still emerging and prone to cyclical ups and downs, Seraphim faces the same external pressures as other frontier technologies. These pressures include shifting investor sentiment, macroeconomic factors, and geopolitical instability.

"Navigating market volatility is part of the reality of pioneering a new asset class," Boggett says. However, Seraphim has managed to stay grounded in its long-term approach. "We stay focused on long-term fundamentals," says Boggett, highlighting that Seraphim invests in companies that have robust intellectual property, clear commercial pathways, and the ability to solve real-world problems.

Seraphim also takes an active role in supporting portfolio companies during difficult times. "We work closely with our portfolio companies to help them extend runways, optimise their operations, and adapt their strategies to changing market conditions," Boggett notes. This proactive approach has been key to navigating volatility and ensuring that companies continue to scale despite challenges.

The Role of Government Investment
Government investment has played a significant role in the rise of the space sector. As nations recognise the strategic importance of space for defense, security, and sustainability, they have poured funding into space-related technologies. "Government investment in space has surged in recent years, driven by strategic imperatives around national security, climate resilience, and digital sovereignty," says Boggett.

For entrepreneurs in the space sector, this influx of government funding creates fertile ground for innovation. "This influx of funding is creating fertile ground for entrepreneurial innovation, particularly in dual-use technologies that serve both public and commercial markets," Boggett explains. These technologies, which have applications in both military and civilian contexts, are gaining increased attention from both private investors and government agencies alike.

One notable example of this trend is ICEYE, which is already providing real-time insights that support military operations, border security, and disaster response. "ICEYE is providing real-time insights that support military operations, border security, and disaster response," says Boggett, highlighting how space technology is being harnessed to solve pressing, real-world problems. Similarly, Xona Space Systems, which focuses on Positioning, Navigation, and Timing (PNT) technologies, is innovating in resilient navigation solutions for both government and commercial applications. "Xona Space Systems is innovating in PNT and resilient navigation services for both government and commercial applications," Boggett adds.

The UK's Growing Space Industry
The space sector is also seeing rapid growth in the UK, with the government positioning space as a key part of its industrial strategy. "Space is now a central pillar of the UK's industrial strategy," says Boggett. As the UK works to build sovereign capabilities in space, there are growing opportunities for entrepreneurs to capitalize on this momentum.

The UK is investing heavily in upstream capabilities, including sovereign launch systems and spaceports in Scotland and Cornwall. "The UK is investing in sovereign launch capabilities, with spaceports in Scotland and Cornwall enabling domestic access to orbit," says Boggett. For start-ups focused on propulsion, launch services, or in-orbit servicing, the UK offers a wealth of opportunities.

The UK is also leading the way in downstream industries, particularly in areas like data analytics, AI, and software. Entrepreneurs can develop scalable solutions in sectors like climate tech, agriculture, insurance, and urban planning by leveraging space-derived data. "The UK excels in data analytics, AI, and software, making it a hub for companies turning space-derived data into actionable insights," says Boggett.

Shaping the Future of SpaceTech
As one of the leading investors in the space sector, Seraphim continues to back cutting-edge companies that are pushing the boundaries of what's possible in space. "We've already backed 7 companies that have become unicorns," says Boggett, reflecting on the firm's successful track record.

Despite the volatility and challenges that come with pioneering a new industry, Boggett is confident in the future of space. "Ultimately, our conviction in the space sector remains strong. We believe space will become increasingly central to global infrastructure," he says. With government investment, a growing ecosystem of private entrepreneurs, and rapidly advancing technologies, the sky is no longer the limit - it's just the beginning.