Venture-backed Space Technology Company Leapfrogs Competitors

Over the last several years, the number of venture-backed technology companies focused on the Aerospace & Defense market has grown markedly

Investors have been favorably conditioned by some major success stories such as Anduril, Palantir and SpaceX, and end-market customers have been more ready to buy new technologies and solutions.   

As new demand signals emerge, start-ups are focused on investing to create clear customer value propositions and quickly building moats to sustain a competitive advantage. With more sources of available VC funding comes competition from other start-ups around. Fund raising, investment, speed to market and positioning to land and expand new customers have become key axes of competition.   

Sometimes the fastest way to establish a market position and solidify unique capabilities is via M&A. This can be a tall order – a VC-backed company needs to navigate emerging segment dynamics, its own rapid growth, and the simultaneous need to bring along funding sources.   

Turnkey Buy-side Analysis & Advice  

‘SpaceTechCo’ was in an emerging area of the new space sector with an opportunity to vertically integrate both into sensing and collection of data with a first acquisition, and a key proprietary data set with a second acquisition.  The key merits of the strategy included creating a stronger customer value proposition while gaining substantial additional revenue streams to put the Company on a path to significantly earlier cash flow break even.   

Renaissance assisted client across M&A Advisory, Commercial Due Diligence and Operational Diligence and Post-Merger Integration Preparation.   

With Renaissance support, ‘SpaceTechCo’ was able to navigate negotiating two acquisitions in parallel, while conducting the necessary commercial due diligence, financial modelling, valuation and structuring needed to gain comfort with the acquisitions. ‘SpaceTechCo’ was then ideally positioned to approach existing and new equity investors, and venture debt providers with clear strategic logic, commercial due diligence information and a well-organized financial model.      

Renaissance also assisted the Client with operational due diligence and post-merger integration preparation for these transformative acquisitions. 

Consequential Outcome

By successfully raising capital and closing the acquisitions, Client gained extensive new capabilities toward its overall platform value proposition, and gained several new government, international and commercial customers, and established a faster path to cash flow break-even.