Seraphim Capital, a specialist investment group focused on the Space sector, has recently invested GBP2 million into two UK companies – Isotropic Systems (Isotropic) and Commodities AI (ChAI).
Isotropic is aiming to redefine satellite communications. Its revolutionary flat panel antennas will be capable of creating a mesh network by simultaneously connecting to multiple different satellites in different orbits. With the likes of SpaceX and UK-based OneWeb already deploying constellations of thousands of satellites to deliver high speed broadband connectivity from space, satellite connectivity is expected to skyrocket 35 fold by 2027 fuelling a USD400 billion potential industry.
Being able to cost-effectively and flexibly connect to all these satellites remains a major bottleneck for the sector. With its low powered, modular, software-defined antennas, Isotropic is aiming to address these issues with a particular focus on mobility markets. By enabling aircraft, ships, trains, buses and even cars to benefit from broadband satellite connectivity, Isotropic expects to play a key role in expanding the market for satellite communications.
ChAI fuses cutting edge artificial intelligence with space data to deliver price predictions for more than 30 different commodities. Commodity spend – namely buying raw materials – can account for up to 70 per cent of revenues for major industries. The pricing volatility of many of these commodities has been increasing in recent times, due in part to the growing impact of climate-related extreme weather events on different supply chains.
Today, it is typically only the very biggest businesses that have access to both commodity pricing forecasts and financial instruments needed to protect themselves from such pricing volatility. ChAI is looking to change this by democratising access to the information and tools businesses need to properly hedge commodity price risk.
ChAI makes it easy to identify the optimum time to buy key metal, agricultural, energy, and plastic materials – as well as carbon credits – by providing pricing predictions up to 6 months into the future. It does this by applying the latest artificial intelligence techniques to data derived from everything from satellite imagery to freight information. ChAI’s price predictions have enabled its customers to capture a 25 per cent increase in margin on their commodity spend.
Both of these new investments will form part of the portfolio of 19 companies that are due to be acquired by Seraphim Space Investment Trust PLC – the world’s first listed fund focused on the space sector – which is expected to complete its IPO on Friday 9th July.
James Bruegger, Chief Investment Officer of Seraphim, says: “Isotropic Systems and Commodities AI are both fantastic additions to our portfolio. Both are great examples of the world-leading innovation within the space sector being developed from the UK. We think both companies share common attributes in holding the potential to join another of our UK portfolio companies – Arqit – in becoming the next British space tech unicorns.”
“Isotropic Systems multi-beam antenna plays an integral role in our investment strategy. They are set to become the leading enabler for advanced commercial space satellite services. This breakthrough technology will enable access to every bit of capacity in space, from defence to aeronautics applications. With the most advanced multi-beam connectivity over a single game-changing antenna, Isotropic Systems will help transform and reshape the entire space industry.”
“ChAI is a great example of how the application of space data can have a tangible impact on our world. Helping companies protect themselves from commodity pricing volatility will become ever more important as climate change increasingly disrupts the global supply chains upon which we all rely. With decades of commodity trading experience, the ChAI team is now at the forefront of applying cutting edge artificial intelligence techniques to commodity price predictions for the first time. As the most prolific investor in satellite constellations, we are excited to see how the business will be able to benefit from all the space data being generated by our satellite portfolio companies.”
John Finney, founder CEO of Isotropic Systems, says: “Isotropic stands on the cusp of transforming the satellite communications industry. The ability of our terminals to connect to any satellite in any orbit will be a game-changer. It is a fantastic validation for us that the world’s leading space-focused investment group – Seraphim – have chosen to partner with us in our quest to connect the world.”
Tristan Fletcher, founder CEO of Commodities AI, says: “We are delighted to welcome Seraphim as an investor. Their knowledge of the space sector will be a tremendous asset for us as we seek to find new ways to supercharge our pricing forecasts with all the new datasets now being captured by satellites.”