1. High & High

High risk – high potential return

Invest in attractive start-ups and benefit from the successful development of the business. The companies in this profile offer promising and trendsetting products and services. Their performance on the market still needs to be demonstrated.

High entrepreneurial risk with high return potential. Return is generated at the end of the term of the investment after 5 years, or in case of an exit. Return expectations vary by company between 15% and 50% internal rate of return per year and could result in a multiplication of the money you invested. This high potential return is correlated with a risk of loss. In the case of highly innovative start-ups, not all companies will be able to execute their business plan successfully and some might fail entirely.

Here you find a summary of the contractual terms for the investment profile  „High & High“

---

 

2. Medium & Positive

Medium risk – attractive potential return

Invest in high growth companies, which have successfully implemented their business model and already generate revenues.

Entrepreneurial risk: growth expectations might not be met. Current yield based on a revenue share. Term of the financing 36-60 months. Return expectations vary by company between 12% and 30% internal rate of return per year. This potential return is also correlated with the risk of loss. The probability of a total loss of investment however is smaller than in the investment profile “high & high” due to the current yield that is paid on a semi-annual or annual basis to investors, and given the fact that the companies already generate revenues.

​Here you find a summary of the contractual terms for the investment profile : „Medium & Positive“

---

 

3. Low & Solid

Smaller risk – calculable interest income

Invest in established businesses with a solid track record. Operational cashflows and innovative products or solutions help these companies grow sustainably and generate profits.

Calculable cashflows for investors due to fixed interest payments on a quarterly or semi-annual basis. Return expectations vary between 4% and 12% interest per year. Due to scheduled interest payments, the risk of a total loss of investment is substantially decreased. However, funding for businesses always contains entrepreneurial risks and losses can never be totally ruled out.

Here you find a summary of the contractual terms for the investment profile : „Low & Solid“

---

 

 

Invest In Space Categories  

Satellites

Satellite production and operation

Navigation, Earth observation or communication satellites – from small satellites to heavyweight satellites – the space sector supplies and operates hundreds of satellites for public and private clients. With the “New Space Economy”, private financiers invest into new business models for satellite fleets, for instance industry 4.0, transport & logistics or internet coverage of the African continent. SpaceStarters develops a company and investment portfolio for the financing of new digital business models, preferably on the basis of small satellite fleets.

---

 

Products and Services

Satellite-based products and services

The growth markets of the space industry are the manifold applications of satellite communication, Earth observation and navigation. According to the OECD, the market volume amounts to 146 billion US dollars with great growth potential (7-8 percent in the areas of navigation and Earth observation) for companies and investors. SpaceStarters will build a portfolio of companies and investors who preferably invest into new digital business models for satellite-based applications. The target markets incorporate the entertainment industry, transport & logistics, the automotive sector or the utility industry, just to name a few.

---

 

TechTransfer

Technology transfer from space

The space sector is the driver of innovation with an enormous portfolio of property rights and technologies in a wide range of technical domains. The technology transfer from the space sector to other industry sectors offers SMEs and young companies excellent opportunities for the development of new products and services. SpaceStarters will specifically build a portfolio of companies and investors who develop new products and services from the space sector for new market segments. At the same time, the space sector depends on innovation from other industries. The so called “spin-in” offers great growth potential for medium-sized companies.

---

 

ISS

International Space Station ISS

The ISS constitutes the biggest international investment in the field of manned space flight – and offers huge potential for applied science and technology development. Over the last years, 2,000 scientists from 83 countries participated in more than 1,500 experiments. Prime examples from medical technology and materials sciences (e.g. the use of plasma as disinfectant in hospitals) show the increasing importance of research in a completely weightless state and the great potential of innovative commercial applications. At the same time, the ISS itself – through its high revisit time in low Earth orbit (LEO) – offers innovative companies the opportunity to develop new business models for Earth observation, navigation and communication. The SpaceStarters portfolio incorporates companies who place their own experiments on the ISS, bring technology developments to market in the form of innovative products and realise new business models with the help of the ISS.

---

 

Exploration

Space exploration and beyond

What sounds like science fiction has already become reality: the landing of Rosetta on a distant comet has recently shown that technological hurdles are brilliantly mastered by engineers. With the entry of private investors, “Space Exploration” is increasingly becoming interesting for commercial business models. From asteroids mineral mining, construction of a lunar basis with 3D printing, manufacturing reusable rocket stages and new space shuttles to manned missions to Mars – space offers plenty of room for entrepreneurial activities. SpaceStarers will build a portfolio in this future field which will provide investors the potential to participate in visionary companies as pioneers and to actively shape the future of mankind.

---

 

 

Building an investment portfolio

Please consider the fact that all investment opportunities on SpaceStarters contain substantial entrepreneurial risks. The risks vary based on the investment profile on the one hand and from one company to the next on the other hand. The names of the investment profiles help navigate the risk structure and please check for the individual risks of each business in the risk chapter of its business plan. It is potentially always possible that a company is not successful and that the invested capital cannot be paid back to investors.

For that reason, it is advisable to distribute the money you consider to invest across a number of companies, ideally in different investment profiles. By building your own portfolio of investments, the failure of one company can be compensated by the positive development of other investments in the portfolio.

Considerations for building an investment portfolio

The principle of “all eggs in one basket” increases the risk of total loss. Research shows, that proper diversification requires 10 investments or more. We therefore recommend to build an investment portfolio over time. It is advisable to not put more than 10% of the overall amount you would like to invest into a single company.

Investments in companies that are not traded on a stock exchange cannot be sold on short notice, as there is no trading platform for such companies. The money invested is not liquid during the term of the investment. For that reason, a good rule of thumb is, to not invest more than 5%-10% of your personal assets in illiquid investments.

Leveraging the investments made on SpaceStarters will increase your risk: loans will have to be paid back to the lender, irrespective of the success of your investment or results in a loss of capital. For that reason, we highly recommend not to finance your investments on SpaceStarters by taking up a loan.

The role of SpaceStarters

The SpaceStarters website is an online platform operated by FunderNation GmbH. Companies can use it to introduce their business model and find investors. Investors have the opportunity to participate in the economic success of companies in three different categories (start-up companies, growth companies, established companies) through subordinated loans. Details of the loan contract depend on the investment profile (see also the investment profiles).

The selection  of companies presented on SpaceStarters is based on documentation provided by the companies. FunderNation GmbH undertakes a screening before admitting a company to its online platform. The screening focuses on specific parameters, which we have developed on the back of our 20 years of venture capital investment experience.. FunderNation GmbH does not take responsibility for the correctness of the documentation provided by the companies, nor that the companies fulfill the screening criteria throughout the duration of the fundraising campaign.

Each investor needs to validate the  chances of success of a business presented on SpaceStarters for himself / herself. The information about a company on the platform is exclusively provided by the company. FunderNation GmbH is not responsible for the validity of the business model or if the company will be able to fulfill investor expectations. In order to facilitate the assessment of investment opportunities, we have developed a number of key performance indicators(KPIs) based on our long standing investment track record. In addition to the business and financial plan, these performance indicators will help to evaluate the potential of a business. The standardised KPIs also help to compare different investment opportunities. The final investment decision rests exclusively with the investor.

FunderNation GmbH provides the companies with appropriate methods to determine the valuation of the business. These have been chosen based on the published Valuation Guidelines of Invest Europe - the European Private Equity and Venture Capital Association - that have been globally adopted by institutional investors. Fundernation GmbH verifies the correct deployment of the valuation methods by the companies. A decision, whether the resulting valuation is appropriate for the business, rests with the investor. Here you find a description of the valuation methods (LINK)

Risk advice

Please read the chapters „building an investment portfolio“, „considerations for building an investment portfolio“ und „the role of SpaceStarters“ carefully. They contain important risk advice.

Further details on the risks related to investment can be found in §5 „Risks associated with investments“ of the „Terms and Conditions for Investors“