Exo-Space

Early Stage

Allowing secure access to space information 10x faster by processing data on orbit.

Analytics

Raised to Date: Raised: $212,497

Aggregate Commitments $

Platform

Spaced Ventures

Start Date

06/21/2021

Close Date

04/29/2022

Min. Goal

$25,000

Max. Goal

$1,070,000

Min. Investment

$100

Security Type

Convertible Note

Funding Type

RegCF

Series

Pre-Seed

Valuation Cap

$7,500,000

Discount Rate

15%

Rolling Commitments $

Status
Funded
Reporting Date

05/01/2022

Days Remaining
Funded
% of Min. Goal

850%

% of Max. Goal

20%

Likelihood of Max
Funded
Avg. Daily Raise

$681

Momentum
Funded
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Location

Pasadena, California

Industry

Transportation, Automotive, Aviation, & Aerospace

Tech Sector

Hardwaretech

Distribution Model

B2B

Margin

High

Capital Intensity

High

Business Type

High Growth

Exo-Space, with a valuation cap of $7.5 million, is raising funds on Spaced Ventures. The company builds add-on AI capabilities for Earth Observing Satellites. The hardware device built by Exo-Space, FeatherEdge, connects to the satellites and runs raw image data through machine vision algorithms. Jeremy Allam, Marcel Lariviere, and Mark Lorden founded Exo-Space in January 2020. The proceeds of the current crowdfunding round, with a minimum goal of $25,000 and a maximum goal of $1,070,000, will be used towards software development, product manufacturing, company operations, and working capital. Exo-Space has three LOIs for a total of 45 units and projected revenue of $4.5 million over the next 18 months.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$25,163

$0

COGS

$0

$0

Tax

$963

$0

 

 

Net Income

$2,711

$0

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$3,674

$0

Accounts Receivable

$0

$0

Total Assets

$3,674

$0

Short-Term Debt

$963

$0

Long-Term Debt

$0

$0

Total Liabilities

$963

$0

Financials as of: 06/21/2021
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

Using satellite technology, companies and governments can do anything from monitor shrinking glaciers to broadcast the evening news. But processing all that data creates a significant latency — a delay between when that data is collected and when it can be transported and reassembled back on earth. 

That’s where Exo-Space comes in. Its technology, known as FeatherEdge, is a piece of hardware that can be connected to a satellite. Through the process of edge technology, the device receives images directly from an onboard camera and analyzes them using an ultra-fast image processor, which determines which pixels are important. Instead of sending all the raw data from a camera’s image, edge computing reduces data latency by only sending useful processed pixels to the ground.

Exo-Space’s current Spaced Ventures raise has been rated a Neutral Deal by the KingsCrowd investment team.

Price

Exo-Space is currently raising via convertible debt at a $7.5 million valuation with a 15% discount. This price seems quite low, but the company has experienced little traction. So our system has rated Exo-Space’s price about average on its one-to-five scale.

Market

Exo-Space is operating in the global satellite data services market. According to one source, this market was valued at $5.3 billion in 2019 and is expected to grow at a 27.9% annual rate to reach $36.9 billion by 2027. A second source pegged the market opportunity at $5.5 billion in 2019, with an annualized growth rate of 19.1% taking it to $19.4 billion by 2027. The overall small size of this space is slightly discouraging, but the high expected growth rate helps to offset this to some degree. Therefore, Exo-Space’s market opportunity score is above average.

Team

Exo-Space has three co-founders: CEO Jeremy Allam, lead mechanical engineer Marcel Lariviere, and business development head Mark Lorden. Prior to founding Exo-Space, Allam was a flight software engineer at NASA’s Jet Propulsion Laboratory. Before that, he was a software specialist and engineer at the Space Engineering Research Center. At one point, he also served as a geophysicist at Schlumberger. He has a master’s degree in astronautical engineering. 

Lariviere previously worked as a ride apprentice engineer at Walt Disney Imagineering, and before that, he was a mechanical and structures engineer lead at USC Space Engineering Research Center. 

Lorden previously worked as a mechanical engineer at SMP Engineering. While there, he focused on automation and product development. He also worked as a project design engineer at Norchem Company, where he focused on eco-friendly technology projects. He worked as a coding and braking system design professional at Caltech and also had a brief stint as a teaching assistant at the Caltech robotics lab. Overall, the Exo-Space team has enough relevant experience to warrant an above-average team score.

Differentiators

Exo-Space’s competition includes Ubotica Technologies, Antmicro, and KP Labs. Two things in particular set Exo-Space apart from these other businesses. First, Exo-Space claims its technology is currently the only one to be able to integrate with any satellite busa model on which multiple-production satellite spacecraft are often based on the market today. Second, it claims to have the fastest processor available. Because of this, our system has rated the company’s differentiation near the high end of our scale.

Performance

Exo-Space generated just $25,163 in revenue in 2020, which is quite low. Net income came out to $2,711, while operating cash flow was $3,674. While it’s a good sign that these figures are positive — many startups have a negative net income at this stage — this doesn’t necessarily mean the company is executing well. It’s more likely that Exo-Space just doesn’t have infrastructure or payroll costs cutting into its bottom line. The company’s product is also not fully developed.

Exo-Space has three letters of intent (LOIs) that add up to 45 units. At its current pricing, this would equate to $4.5 million in revenue over an 18-month window. Investors should be aware, however, that LOIs are often not legally binding. So it’s possible that the clients could back out of the deal. With its limited customer base, losing one or two contracts would be devastating for Exo-Space. Given all of this, our system has rated Exo-Space’s performance below average on our scale.

Risks

Exo-Space has elevated risk in two categories. The first is product risk. Given that Exo-Space’s product is still in development, it is unclear whether it can survive in space and do all that management claims it is capable of doing. The second is funding risk. Exo-Space has yet to achieve any funding milestones, and its business model is based on a long-term payout. It also operates in a capital-intensive space. So Exo-Space could run out of money before it gets off the ground. Down the road, this could either sink the company or force a potentially difficult funding round.

Bearish Outlook

Exo-Space operates in a rather niche market, which could limit its growth potential. Aside from its letters of intent, the company’s performance has also been discouraging so far. It has generated a little over $25,000 in revenue and has an incomplete product. Plus, Exo-Space’s current customer base is smaller than investors would likely prefer, which could put the business at risk if it loses its existing customers. The company is also relying on a long-term payout, which amplifies its risk of running out of money in the interim.

Bullish Outlook

Despite its challenges, Exo-Space is raising at an appealing valuation, and it already has a few letters of intent under its belt. Though the company’s market opportunity is small, it is growing at a rapid pace. The company’s product also appears highly differentiated from the competition. In addition, aside from Exo-Space’s product and funding risks, the company’s risk profile is fairly reasonable.

Executive Summary

Exo-Space uses edge computing technology to quickly and efficiently transfer data from satellites. The company is an appealing prospect for several reasons. First, the company is raising at an attractive valuation and has a few companies interested in using its product. The company claims its product has the fastest processor on the market and is compatible with any kind of satellite bus, which sets it apart from its competitors. It is also operating in a rapidly growing market, and the company has a decent risk profile.

Exo-Space also has certain risks that investors need to be aware of. Although the market is growing, Exo-Space is still operating in a rather niche market and currently has a small customer base. It faces product and funding risk, and there’s no guarantee its potential customers will end up using its product. Finally, its financial performance has been mediocre. Overall, KingsCrowd has rated the company a Neutral Deal.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

Analysis written by Daniel Jones.

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Exo-Space on Spaced Ventures 2021
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Platform: Spaced Ventures
Security Type: Convertible Note
Valuation: $7,500,000

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