Investing in space technology has surged into the mainstream, with the sector now valued at $626bn (£460.1bn). Mark Boggett, co-founder of Seraphim Space Investment Trust, spoke about the industry's transformation and his fund's remarkable growth.
From Science Fiction to Mainstream Investment
Twelve years ago, space tech investing was seen as science fiction. But Boggett saw an opportunity and co-founded Seraphim Space Investment Trust, the world's first specialist fund dedicated entirely to the sector. Key investors included giants like Airbus, SES, Telespazio, and Teledyne, who recognised impending disruption in traditional space industries.
Since then, the industry has been propelled by increasing NASA missions and the anticipated SpaceX IPO. Seraphim's shares have jumped over 300% in the past year, making it a FTSE 250 contender. The trust has also moved from a persistent net asset value discount to a premium of about 60% as of May 2026.
Capital Raises and Unicorns
The trust's share price has rocketed 93.3% since January to 245.5p, making it one of the standout performers on the FTSE All-Share index. In February, it was the third-strongest performing UK-listed investment trust. Seraphim manages $550m in assets across three vehicles, investing in 45 companies.
The trust has produced nine $1bn 'unicorns', including AST Space Mobile, now valued at around $30bn. It has also seen five IPOs, with another occurring this week. Last week, Seraphim held a C-raise, raising £137m—the largest UK investment trust fundraise since 2023. The funds will be deployed into advanced investment opportunities, increasing stakes in successful portfolio companies and adding high-performing firms.
Defence Specialist Driving Growth
Boggett identified rapid defence spending increases as the biggest theme in space tech investment. Nine of Seraphim's top ten holdings deal with defence and security, representing 70% of its net asset value. European countries are boosting defence capabilities to reduce reliance on the US.
Seraphim's largest holding, ICeye, a satellite company valued at $2.8bn, is used by governments in Denmark, Finland, and Poland. Its revenue has more than doubled to roughly $250m. Signal intelligence company Hawkeye 360, which floated on the NYSE this week, was selected by a European Ministry of Defence for a $75m electronic warfare programme.
Data Centres in Space: The Next Frontier
Beyond defence, the sector is at an inflection point. SpaceX's reusable rockets have cut launch costs by 95% over ten years, with launches now occurring every 27 hours—down from once a month. The new Starship rocket could support mega structures in space.
Several companies are planning infrastructure for data centres and energy return to Earth. Satellites have shifted to smaller, cheaper models the size of a fridge or microwave. Boggett noted possibilities for solar farms, communication towers, and data centres in space. Despite defence dominance, the trust is prepared for a shift to commercial opportunities.
"This is a multi-trillion dollar investment opportunity that's here today, and we're still only 20% of the way through it," Boggett said. "There's still a lot of opportunity just in that alone."
