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A Review of the Seraphim Space Investment Trust – Nanalyze

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Arthur C. Clarke once said “two possibilities exist: either we are alone in the Universe or we are not. Both are equally terrifying.” Space has always had an allure that’s attracted investment dollars from billionaires and retail investors alike. For the latter, so far it’s been slim pickings. Old school satellite operator stocks aren’t very appealing and the space ETFs on offer are just dreadful. Yes, even ARK’s space ETF.

While some appealing companies are unfortunately deciding to go public using special purpose acquisition companies (SPACs), we’re left holding no space stocks in our tech portfolio. (Once the Planet deal closes, we’ll have one, but that’s about it.) That’s why we’re always grateful when our lovely readers point out new vehicles for investing in space – like Seraphim Space Investment Trust (SSIT.L).

About Seraphim Space Investment Trust

We haven’t had a lot of good things to say about publicly traded venture capital firms, though we have found some interesting funds that dabble in private companies. Both Scottish Mortgage Investment Trust and Baillie Gifford US Growth Trust come to mind as viable ways to play both public and private tech companies. Now, there’s another publicly traded firm that allows one to invest in public and private companies that are pure plays on the space theme. Seraphim Space Investment Trust became publicly traded just days ago, raising $250 million in the process. Today, we’re going to talk about what companies they plan to initially hold based on information contained within their registration document dated June 2021.

Credit: Seraphim Space Investment Trust

All numbers will be provided in USD since the majority of our readers use this currency. There are many moving parts that change quickly so this analysis is meant to be a snapshot of what the company will look like following their July IPO.

19 Space Companies

Seraphim isn’t starting from nothing, but rather they plan to acquire a portfolio of 19 companies with the proceeds from the IPO. That portfolio is one they already held prior to the IPO, and they are more or less transferring assets from one legal entity (Seraphim Space Fund) into another legal entity (Seraphim Space Investment Trust), the latter being the new company that just became publicly traded. The collection of 19 companies can be divided into two groups:

  • 15 companies with a combined value of $36 million as of May 2021
  • 4 companies with a combined value of $69 million as of May 2021

Let’s start by looking at the 15 companies first.

The First Fifteen

Here’s a table showing the company name, the percentage of the company Seraphim owns, and the implied valuation of the company based on that percentage.

Company Name Value
(USD millions)
% Owned Implied valuation
(USD millions)
LeoLabs 13.25 4.5% 294.4
Altitude Angel 5.11 18.6% 27.5
PlanetWatchers 4.14 30.5% 13.6
AST SpaceMobile 2.90 0.4% 724.5
Edgybees 1.93 5.0% 38.6
Isotropic Systems 1.93 2.8% 69.0
Bamboo Systems 1.79 33.4% 5.4
QuadSAT 1.52 14.1% 10.8
Satellite Vu 0.83 12.5% 6.6
TransRobotics 0.69 21.6% 3.2
Xona Space Systems 0.69 5.0% 13.8
Ch.ai 0.69 8.4% 8.2
Opteran 0.69 3.6% 19.2
Nu Quantum 0.41 1.0% 41.4
Nightingale Intelligent Systems N/A 5.9% N/A

The first company on that list we recently covered in a piece titled Tracking Space Debris with LeoLabs which talked about their latest round – a $65 million Series B raised last month. The other company we’re familiar with, and the highest valued of the lot is AST SpaceMobile, a firm we’re quite skeptical about given we’ve yet to see a proof of concept that sufficiently convinces us that any mobile phone can become a satellite phone.

That leaves us with 13 companies we haven’t covered yet, not all of which we might classify as “space” companies. Seraphim expands their definition of space in much the same way ARK considers Trimble a space stock. In their definition, Seraphim also includes autonomous vehicles stating:

The coming automation revolution – be it robots, drones, autonomous cars or flying taxis – all rely on precise navigation and fail-safe connectivity.

Credit: Seraphim

Two of Seraphim’s holdings fall under the category of drones.

Name Funding
(USD millions)
Description
Altitude Angel 4.9 A cloud-based automated air traffic control platform for drones and
flying taxis
Nightingale Intelligent Systems 8.6 Security drone that deploys autonomously when activated by the security system

That leaves us with 11 space companies remaining.

Name Funding
(USD millions)
Description
PlanetWatchers 7.3 Uses synthetic aperture radar imagery – plus AI – from satellites for crop monitoring and insurance and automated insurance claims assessments.
Edgybees 16.4 AI-powered augmented reality platform that uses satellite data for real-time information overlays for any video stream
Isotropic Systems 60 Creating a mesh network of satellite connectivity by developing an
antenna capable of connecting to any satellite in any constellation in any
orbit
Bamboo Systems 11.5 Low power miniaturised servers based on ARM microprocessors
QuadSAT 3.3 Testing and calibration of satellite antennas using a drone platform.
Satellite Vu 5 Smart energy meter from the first infrared imaging smallsat constellation
capable of monitoring the thermal footprint of any building every few hours
TransRobotics Unknown Software-defined digital radar built using standard wifi chips for enabling machine vision for autonomous systems.
Xona Space Systems 1.1 The world’s first smallsat GPS constellation delivering centimetre level
accuracy for autonomous navigation
Ch.ai 1.9 AI-enabled predictive analytics platform to predict commodity prices using a variety of data sources including satellite imagery
Opteran 2.72 a chipset for computer vision enabling simultaneous localization and mapping based on the biomimicry of bee brains.
Nu Quantum 5.5 Single-photon quantum photonics systems, integral to building quantum secure communications infrastructure

That’s a nice collection of companies addressing a wide variety of space-related use cases. Now, let’s move on to look at the other four firms Seraphim plans to acquire for themselves.

The Last Four

The reason Seraphim has distinguished these four names from the rest is that they’re “currently subject to corporate activity which may have a material impact on the value of those investments.” Two of the companies – Spire Global and Arqit Limited – are SPAC mergers that have yet to go through. The below table shows the “fair value” of these investments compared to the “estimated transaction fair value.”

Credit: Seraphim Space Investment Trust

We recently sold our holding in Spire for two reasons – the SPAC merger hasn’t been finalized, and we believe that Planet is the leader in this space. There is certainly room for more than one winner, so holding Spire might make sense for Seraphim. As for Arqit, we’ll need to dig into that SPAC in a future piece.

Then there’s D-Orbit which we looked at in our past piece on 6 Technologies for Space Debris Removal. Finally, there’s ICEYE which we looked at in our piece on Space Radar Satellites Tracking Earth From Space.

To Buy or Not to Buy

Our first concern lies in the company’s strategy which talks about how long a horizon they’re looking at holding their assets for. This particular concern surrounds the SPAC transactions they’ve participated in. We believe that once a SPAC merger is complete, the people who orchestrated the merger do well, the company does well, but retail investors fare poorly. Therefore, a fund that realizes a SPAC exit event for one of their startups – one that likely took place at decent valuations – should not continue holding those positions, but rather use the opportunity to realize a return for its investors. That is, unless the fund believes that the company has immense potential beyond the current valuation, and plans to hold it long enough to realize that, which is what Seraphim believes.

If the space investment thesis is just getting started, we’d rather Seraphim invest the lion’s share of their capital in companies that have yet to exit so they might realize the maximum amount of upside. Being one of the leading venture capital firms in NewSpace, Seraphim has plenty of deal flow to fill their portfolio with new and exciting space startups.

There’s nothing wrong with Seraphim from the perspective of a retail investor who has the time to monitor all the moving parts within the company. Alternatively, you can just entrust the management team will act in your best interest and leave it at that. It’s certainly a much better way to get some space exposure than any of the crummy space ETFs out there. We’d rather wait for some of this dust to settle and see how Seraphim goes about allocating the remaining 58% of their cash (about $145 million) before going long here.

Conclusion

Given the serious lack of diversified space funds or ETFs, Seraphim Space Investment Trust is a first of its kind that shows some real promise for retail investors. With the majority of cash yet to be allocated, we’ll check back once the dust has settled following the IPO and the planned SPACs have gone through as expected.

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Camarico Launched Camarico Financial Corporation and Pilot Investment Program – TheNewswire.ca

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July 29, 2021 – TheNewswire – Camarico Investment Group Ltd. (CSE:CIG) (CNSX:CIG.CN) (“Company”) is pleased to announce the restructuring and relaunch of Maverick Northstar Inc as Camarico Financial Corporation (“CFC”). CFC will lead Camarico Investment Groups non-equity-based investment strategies.

 

CFC has received a non-interest-bearing loan from Camarico Investment Group for the sum of $200,000 CAD to initiate CFC’s proprietary Pilot Program, Reserve Capital and G&A. CFC will place Reserve Capital in Collateralized Short Term Demand Notes with qualified third parties.

 

CFC will provide monthly updates on Pilot Program performance and findings.

 

Camarico Financial Corporation is not a licensed financial service provider and WILL NOT sell financial products, such as: mutual funds, insurance, securities or stocks, options, futures, OR have specific duties within a financial services company, such as portfolio management or supervisory responsibilities.

 

ON BEHALF OF THE BOARD OF DIRECTORS OF CAMARICO INVESTMENT GROUP LTD.

“R. Mackenzie Loree”

Chief Executive Officer

Email: mloree@camarico.ca

 

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.

 

Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information contained in this news release.

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The 5 Worst Investment Tips on TikTok – Entrepreneur

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July
29, 2021

6 min read


This story originally appeared on NerdWallet

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.

Do-it-yourself is fine when the stakes are low; everything you need to know about patching drywall is on TikTok. But what about when the stakes are high? Would you rewire your home after watching a few TikTok videos? Probably not, and the same logic goes for financial advice.

Pouring your savings into an investment — or any product — being hawked on social media is generally a bad idea. But how will you know which bits of advice are legitimate, and which are bunk? Below, experts weigh in on the worst investment advice they’ve seen recently on TikTok and other social media.

1. The FIRE movement is for everyone

FIRE stands for “financial independence, retire early,” and given how the movement has spread on social media, the acronym is apt. Chris Woods, a certified financial planner and founder of LifePoint Financial Group in Alexandria, Virginia, says that many of the core tenets of the FIRE movement are great: They focus on lowering your expenses, saving heavily, putting money into diversified index funds and generating multiple streams of income to help you retire early, which may all be sound financial decisions.

The problem is, everyone’s financial situation is different. Financial planners spend a lot of time upfront learning as much as they can about someone’s unique financial standing before making any recommendations. And for some, he says, the FIRE movement may be an appropriate goal. But it’s not for everyone, and sound bites from social media influencers can’t take your personal situation into consideration.

“So many people will do what these influencers are saying, even if it’s not the appropriate thing for them,” Woods says. “That’s one of my big overarching disappointments or gripes with the influencers out there. Because a lot of times, they’re talking about this stuff without context.”

The next time you see someone living their best #vanlife and boasting how they retired at 30, remember you’re seeing a highlight reel, Woods says. Their financial situation may have been completely different from yours, and there’s no guarantee what worked for them is right for you.

2. Forget about 401(k)s and IRAs

There’s a thought out there that boring, long-established wealth-building strategies, such as funding retirement accounts like 401(k)s and IRAs, are outdated.

“This is all so faulty and so bad I don’t know where to start,” says Tiffany Kent, a CFP and portfolio manager at Wealth Engagement LLC in Atlanta.

Kent says that to stand out on social media, someone can’t just talk about typical retirement accounts over and over again, no matter how proven they are. Boring doesn’t inspire viewers to smash that “like” button.

Instead, they talk up new, complicated — and at times confusing — products, simply to stand out from the crowd. Sometimes the ideas are a bit contrarian, other times they’re outright outlandish. But this approach, Kent says, is absolutely the wrong way to get financial advice.

“If it’s boring, it’s good,” Kent says.

3. Precious metals are the best long-term play

Gene McManus, a CFP, certified public accountant and managing partner at AP Wealth Management in Augusta, Georgia, said by email that he’s seen claims that precious metals IRAs (which invest in gold and silver instead of stocks and bonds) are a better choice than typical IRAs.

He said acolytes of the strategy argue that precious metals IRAs better protect your money from things like inflation, global supply shortages or a collapse of the financial markets.

But McManus disagrees.

“The long-term history and performance of gold and silver do not indicate that they are a rewarding asset class,” he said. “There are short-term periods that they might outperform the S&P 500, but over the long term, they don’t make sense to own, especially exclusively or overweight in a portfolio.”

4. Hundreds of thousands of people can’t be wrong

It’s true that there’s power in numbers. However, it’s equally fair to say that mob mentality, echo chambers and hype can get in the way of rational decision making. Anthony Trias, a CFP and principal at Stonebridge Financial Group in San Rafael, California, says he’s worked with clients who are investing in stocks they’ve heard mentioned on social media — no matter how staggering the claims of future potential — because of how many people were talking them up.

“There are going to be 300,000 people on social media saying one thing,” Trias says. “But prudent investors block out the noise, do their due diligence and look at who they’re actually listening to.”

Trias also echoes Woods’ concerns. Validating investment ideas based on social media hype is problematic, he says, because investment decisions should be highly tailored to you and your needs — and that’s just not possible on social media.

5. Your cryptocurrency will absolutely go to the moon

All the rocket emoji in the world couldn’t give a valueless cryptocurrency long-term staying power, no matter who’s pumping it.

Clayton Moore, founder and CEO at crypto-payment system NetCents Technology, said by email that while engaging platforms like TikTok have been instrumental in spreading the word about cryptocurrencies, they’ve also become breeding grounds for fraud.

“You’ve got to watch out for the crypto influencer who’s just in it for a quick buck,” he said. “The classic pump and dump.”

Moore said it’s common for crypto influencers to accept payment in exchange for making wild claims about a coin, only to abandon their support for it once the check clears.

“If it is too good to be true, 99% of the time, it is,” Moore said.

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CPP Investments appoints new head of private equity – Investment Executive

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Former Google CFO joins Wealthsimple’s board

Patrick Pichette is a partner with Inovia Capital, which participated in Wealthsimple’s latest fundraising round

  • By: IE Staff
  • July 27, 2021
    July 27, 2021
  • 11:13

Bank of Canada names new deputy governor

Sharon Kozicki will take on the role on Aug. 2

Mark Carney says climate commitments preclude running for Liberals in fall election

The former governor of the Bank of Canada and the Bank of England said he’s focused on the UN climate conference

SLC Management appoints global head of ESG

Anna Murray will oversee ESG investment strategies for the firm’s institutional clients

  • By: IE Staff
  • July 20, 2021
    July 20, 2021
  • 11:37

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