UK-based venture capital fund Seraphim Capital has secured several corporate backers for an £80m ($125m) fund that will invest in space technology developers, the Financial Times reported on Saturday.
Limited partners in the Seraphim Space & Special Situations Fund so far include Airbus Space UK, a space technology subsidiary of aerospace company Airbus, as well as electronic systems producer Thales, satellite services provider Telespazio, space equipment manufacturer Com Dev and satellite operator Avanti.
In addition to supplying capital, the corporates will use their research and development teams to help identify prospective portfolio companies and will also help to develop the startups once they have received funding.
The LPs will have the option of working with companies developing technology based on their own intellectual property as well.
Richard Peckham, head of business development at Airbus Space UK, told the FT: “One of the missing ingredients in the UK’s growth in space has been the lack of venture capital.
“We hope this will present new innovative opportunities for Airbus in future.”
The fund, which is set to be launched in October this year, will initially invest up to £2m in each startup, with commitments rising up to £12m over the lifetime of a company.
The average life of the investments will be between five and seven years, and Seraphim is aiming for a minimum of 10x return on its investment.