The London-listed Seraphim Space Investment Trust has seen the value of its technology-focused portfolio more than double over the past year, reaching £605.5 million at the end of June, up from £259.8 million a year earlier. The company’s net asset value per share rose 103 percent to 240.49p from 118.52p, marking a significant milestone for the sector.

Mark Boggett, Seraphim’s chief executive, attributed the growth to strong portfolio performance underpinned by increasing government defence spending and efforts to develop sovereign space capabilities. He pointed to accelerating commercial traction, fundraising activity, and corporate developments as key drivers. According to Seraphim’s space investment index, global private investment in the space sector hit $20.8 billion in the third quarter, more than two and a half times the previous quarterly record, with institutional investors showing heightened interest.

The company’s largest holding, Iceye, was the main contributor to this growth. Iceye operates satellite technology that uses microwave pulses to generate near-real-time Earth imagery, aiding in monitoring natural disasters such as floods. A financing round led by General Atlantic in June valued Iceye at over €10 billion. Iceye now accounts for 53.9 percent of Seraphim’s net asset value, a concentration risk that Boggett acknowledged but defended, noting a deliberate choice not to reduce the stake despite available liquidity.

Iceye has also recently announced a partnership with Nokia to develop “sovereign” satellite communications systems, expanding into the communications market, which Boggett described as even larger than the data intelligence market Iceye currently targets. This collaboration is seen as a new growth path, with Seraphim continuing to support the company as a major backer.

Boggett noted that other companies within Seraphim’s portfolio have the potential to mature into similar success stories. The trust invested an additional $15 million in Xona Space Systems this month. Over the past decade, Seraphim has backed 46 space technology companies, many of which have reached later funding stages or gone public. Ten of these companies have achieved valuations exceeding $1 billion, known as "unicorns," and six others have completed public listings.

Retail investors’ interest in space technology has also increased, particularly following SpaceX’s record-setting public offering. Will Whitehorn, Seraphim’s chairman, described this event as marking the sector’s emergence as a mainstream investment category.

In May, Seraphim raised £136.5 million through a C-share issuance, reportedly the largest fundraising by a UK investment company since February 2023. Approximately half of this capital has been deployed across six portfolio companies. Shares in Seraphim have gained nearly 50 percent this year, closing at 194p recently.

Looking ahead, Boggett suggested that space-related defence spending is likely to accelerate further, especially in Europe. He indicated that Europe is attempting to build independent space capabilities amid concerns over reliance on the United States as an ally, leading to what he described as a “massive rush” to enhance sovereign space infrastructure and defence programmes.