Newsletter #1: New SPAC listings, high redemption rates
Several companies that we consider as part of the New Space ecosystem have recently debuted on the public markets.
New Space Activity
Deep-tech eVTOL companies Archer Aviation and Lilium both completed their SPAC mergers. Archer Aviation listed on the NYSE under the ticker ACHR on September 17, while Lilium listed on Nasdaq under the ticker LILM on September 15. In addition, the earth observation satellite constellation operator BlackSky listed on the NYSE on September 10, under the ticker BKSY.
These SPAC deals have experienced relatively high redemption rates - 48% for Archer 65% for Lilium sand 67% for BlackSky. Furthermore, Archer Aviation’s valuation was renegotiated in August, as additional proof of challenges associated with SPAC transactions. As a result of high redemption rates, the trading in these stocks ends up being technical and liquidity-driven as opposed to focusing on the underlying assets' fundamentals. We will continue to monitor redemption rates in emerging New Space companies as they move through their SPAC transactions.
Rocket Lab, one of the companies tracked in our New Space index, reported financial results for the first six we basically shortened months of 2021 on September 8th. The company reported revenue of $29.5M, representing 237% Year-on-Year revenue growth, with GM at 13%. Backlog grew 136% Year-on-Year to $141.4 million as of June 30, 2021 as compared to backlog of $59.9 million as of June 30, 2020.
Share Price Movements
The top performing new space companies in our index, from a share price perspective, in the last two weeks are highlighted below, followed by the top five legacy space companies that we are tracking.
New Space Companies - Top Five Share Price Performers
Legacy Companies - Top Five Share Price Performers
As many of the newly listed New Space companies currently do not report meaningful revenue multiples (either forward or backward looking) we caveat that the revenue multiple numbers below should be considered carefully. As revenue multiple data becomes more meaningful for the New Space ecosystem it will allow for more in-depth analysis and comparison with the Legacy space ecosystem.
New Space Companies - TTM Revenue Multiples
Legacy Space Companies - TTM Revenue Multiples
New Space Companies - Forward (FY2021) Revenue Multiples
Legacy Space Companies - Forward (FY2021) Revenue Multiples
*All market data from end of day Tuesday, 10/26/2021
Promus Ventures invests in early-stage deep tech startups solving complex problems to advance everyday lives across the world. Some of Promus Ventures’ other leading portfolio investments include Rocket Lab (Nasdaq: RKLB), Whoop, Spire (NYSE: SPIR), Mapbox, ICEYE, Bellabeat, Swift Navigation, AngelList, Behavox, Gauss Surgical, Figure Eight, Isotropic Systems, Halter, Cobalt, Safehub, and numerous others.
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