Investment Insight with Giles Moore
The Space sector is expanding at an explosive rate due to an influx of private capital which is growing at a rate of 21% a year. We spoke with Giles who shared with us which sectors of Space he’s got his eye on, how he identifies which tech startups to back and why he thinks investors should be interested in the Fusion cohort.
Space is an emerging market, and in many cases, there is little for investors to compare it to. How can investors relate to the Space sector and see how ventures in this sector can fit into today’s market?
This comes from the founders themselves. They have to be tasked with making it relatable for investors. This can be done two ways, and I can use the two companies I am coaching as examples.
Asteroid Mining Corp is looking to mine planets etc, which is years away. However, they have found a large lucrative market. They can supply a similar device which could be worth millions for them, prior to even entering the space sector. For them, it is a simple task of highlighting the market today, this lucrative opportunity and what that could be worth, as well as highlighting the work done to create a space model. This provides investors with a commercial understanding and also gets them excited. They can be on board with the bigger vision and have fun in that aspect but can see a return on their investment and how this solves a problem in a sector no one else is really focussing on.
Astron Systems is different as it relates to sending satellites to space. For them, it is about showcasing how many are sent to space today, how many last year and how many this year to tell investors there is a market now and this is worth x. If they just focus on telling investors what people say is a forecast, this means nothing. Bringing it to life and providing something tangible allows investors to see the potential now and where this could fit in.
So, it comes down to the founders to tell the story and bring it to life for investors. Investors care about the commercial aspect and how they will make a return. Founders need to think about how to relay to investors. Whether that is going after a market now or highlighting the market today and why they can disrupt it and what that would be worth, using real figures, not forecasts.
Which area of the Space sector are you most excited about?
For us, as we have a model where we need to see a return within a number of years, we are excited about two areas:
1) Companies who are looking at space, but are able to utilise that technology in a market today with a vision to adapt it for space
2) Companies using the current data that is available from space and using it to solve a problem today.
They are quite similar but one is using the current data and one is building out new technology, but this tech can be used for a current market.
As Regional Development Manager for Par Equity, how do you identify the most promising tech startups to back?
We have several methods we use but principally it is a collective decision throughout Par Equity. That involves using the investment team as well as the Par Investor Network, who are specialists in different areas. Collectively we can decide if it's an interesting opportunity to delve deeper into. A deck is also a great way to see if it's of interest, which can be damaging for a founder who doesn’t provide a strong deck.
Ultimately for us, we want to know:
What the problem is they are solving, and by what means?
What the opportunity is?
What have they delivered/achieved so far?
What is their USP?
Why they and their team can deliver this outcome
All the dots need to line up for us to go for it, but if a few of the dots are there to begin with, this makes it an interesting proposition for us to look at further. Having been a founder, I can also gauge people very well which makes it easy for me to decide if I could work with this person and do I believe in this person, which are also huge concerns for any investor.
In your expert opinion, why should Investors be interested in the Fusion Connect with Capital cohort?
There are genuinely some exciting companies and ideas within the cohort, and I have been very impressed with how it has been put together, the advisors and investors who are part of it and the structure of the cohort. We have seen some very impressive founders and ideas, who are willing to listen and learn and take onboard advice. The calibre is high and there are several companies who are and will be selling into ready-made markets. Therefore, investors will be able to see a return on their investment much sooner than most would expect when you talk about space.
Meet Giles
Giles is a serial entrepreneur, having founded and scaled a handful of tech companies. Currently, he is the Regional Development Manager for Par Equity. He is leading Par Equity's expansion into Yorkshire and the North of England, identifying and backing the most innovative, high growth tech startups in the region.
Connect with Space
Fusion Connect with Capital is an investment completion programme with the aim to mobilise the next wave of investors into UK Space. We are offering investors the incredible opportunity to get acquainted with Space with our Investor Lounges: How to Invest in Space. Led by leading experts, these seminars are designed to upskill investors so they can confidently invest in Space. Secure your place today.