Small Satellites: Landscape and Market - New Constellations - New Uses Cases [August 2016]

1. ! 1 Small Satellites: Landscape and Market! ! New Constellations! New Uses Cases! AUGUST 2016  ORANGE SILICON VALLEY

3.   3 Motivation for this report! !Constellations of small satellites—“smallsats”, i.e. low cost, low mass (1-150 kg) and small sized— dominate the news today, touted in applications as wide-ranging as providing universal connectivity, ubiquitous broadband coverage, and daily observation of the Earth. Today, a combination of miniaturized commercial off-the-shelf components (COTS) and satellite technology, coupled with advanced sensors, faster computing, and a need for better actionable imagery, have all acted to usher in a new era for smallsats in the commercial market. In reality, increasingly reliable technology and permissive regulation have enabled ambitious constellation projects that could threaten the telecommunications industry and claim a non-negligible share of the emerging markets. This report surveys the technical and entrepreneurial landscape and uses these insights to develop future adoption scenarios for smallsats in key commercial applications. ! Silicon Valley is the locus of space entrepreneurship activity. From here, we observe the following: The Essentials Key companies to watch! ! • SpaceX: 4,000-satellite constellation to provide Internet connectivity in remote or underserved areas! • ViaSat: 3 satellites bringing 1 Tbit/s bandwidth to provide Internet and 4K video to remote areas and airplanes! • LeoSat: 100-satellite constellation can beat data rates and latency of terrestrial fiber optic networks for enterprise! • Sky and Space Global: 200-satellite constellation for cheaper data, voice and instant messaging services! • Magnitude Space: low power global area network to provide connectivity for the Internet of Things from satellites • smallsat companies want to provide worldwide internet access! • smallsat companies are shaping a new wireless architecture! • smallsat companies aim at providing cheaper data, voice and instant messaging services in remote areas! • legacy satellite operators want to compete with cellular offers to provide connectivity to connected cars, aircraft, and the Internet of Things ecosystem! • satellite antenna manufacturers are bringing smaller, cheaper, more agile, and embedded antennas to fit the market’s need for more mobility and capacity in order to allow for these applications 3,600 Numberofsmallsats expectedtobelaunched overthenext10years 1.3 ! billion Venturecapital fundinginInternetand telephonysmallsat startupssince2009 3.9 ! billion Numberofpeoplestill unconnectedtothe Internet Key Numbers

4. ! 4 Key Insights Large Companies Satcom Startups Landscape I Satcoms VC ACTIVITY EXECUTIVE SUMMARY P.18 P.6 P.12 P.16 P.15 P.11

5. ! 5 ANALYSIS Satcoms P.21 P.19 TOP 10 RISKS FOR TELCOS P.24 Satellite Antenna P.22 The Connected Car Market P.23 The Connected Aircraft Market P.34 OUTLOOK EO P.35 Launch Vehicles Landscape II Earth Observation (EO) and Remote Sensing Ground and Space Communications Startups Data Analytics / Machine Learning Startups P.27 P.32P.33

6. ! 6 EXECUTIVE SUMMARY New Entrants Bringing New Approaches! ! In light of the new LEO constellations formally announced over the past two years, could an influx of fresh interest and new investors develop the industry into a vibrant landscape of new operators, untapped customers, and innovative applications? ! ! The LEO market is experiencing a combination of technological and financial advances that are lowering barriers to entry and driving market growth. Of the 40 commercial non- GEO satellite orders in 2014, only two originated from an “established” market player. From an average of 5.5 active operators per year in 2010-2013 (defined as launching at least one satellite within the year), 2014’s surge to 11 active operators signaled a turning point. ! ! Technology miniaturization has broadened the range of capabilities, enabling operators to provide better value with a smaller and cheaper platform. The feasibility of in-house satellite production (as OneWeb and SpaceX both plan to do) can achieve an even lower per unit cost while providing greater control over design revisions and platform optimization.! ! Finally, LEO satellites’ low cost and rapid development time facilitate the consideration of new ideas; testing a new technique or technology on a GEO satellite which takes 3 years to construct and has a 15-year operating life is a far more intensive proposition than a LEO satellite taking 1 year to construct and has a 5-year operating life that is a fraction of the cost. This makes the LEO market i n h e r e n t l y m o r e r e s p o n s i v e t o technological advances. Global demand for data transport and products Vastly improved economics and engineering Improved ratio of CAPEX to onboard capabilities ! Reductions of launch costs Increasing acceptance of COTS materials, bringing down unit manufacturing cost Factors facilitating market growth

7. ! 7 What’s Happening In Low-Earth Orbit? (LEO)! ! • Small satellites are looking to b r i n g d o w n t h e p r i c e o f c o m m u n i c a t i o n a n d E a r t h observation products/services, which means the competition for existing products and services is rising! ! • Small satellites are also looking to complement existing Earth observation and communication offerings! ! • Multiple small-satellite operators looking to launch their payloads will contribute to the spike in demand for launch services! ! • R e g u l a t o r y f r a m e w o r k s a r e evolving to accommodate small- satellite systems in an effort to help develop the NewSpace industry! ! • Private space startups focus on cost innovation and see space as just another place where data is collected; they often characterize themselves as IT or media companies; and investors view them as being data products and services companies! ! • New firms are takeover targets not of traditional aerospace but of tech giants like Google and Facebook SMALLSAT’S DISRUPTIVE INNOVATION CURVE Advances in IT are fueling the smallsat revolution! ! • COTS hardware - 40-60% improvements annually ! • Breakthroughs in image recognition/analysis software ! • Growing availability of cloud computing and big data analytics ! • Breakthroughs in other technologies (e.g., power systems, miniaturization, advanced materials, 3D printing)! ! • New technologies in the space sector (e.g., laser communications, metamaterial antennas, High-Throughput Satellites (HTS)) EXECUTIVE SUMMARY Source: Institute for Defense Analyses, 2015

8. ! 8 1 100 10000 1000000 1960 1970 1980 1990 2000 2010 2020 Processor Speed Storage Capacity (GB) Energy Density (Watts Per Hour Per Kg) Solar Panel Price ($ Per Watt) EXECUTIVE SUMMARY 50-YEAR EVOLUTION OF THE COST OF SATELLITE COMPONENTS Newer and Lower Cost Applications, Products and Services! ! Constellation-based broadband internet and telephony from LEO! • Sky and Space Global: 200- satellite constellation for the equatorial region! • SpaceX: 4,000-satellite constellation! ! Use of High Throughput Satellites in the Ka-band can provide high speed (20x vs normal satellites) data communications from LEO! • LeoSat: constellation can match data rates from terrestrial ﬁber optic networks Growing Private and Non-Traditional Venture Capital Investment! ! SpaceX $1.2 Bn! Skybox $500 M! OneWeb $500 M! Planet $184 M! Kymeta $127 M! Spire $80 M! Mapbox $62 M! Urthecast $55 M! Blacksky $28.5M Space Applications Incorporating Technology from Other Sectors! ! Newer satellite manufacturing ﬁrms using:! ! • inertial measurement units from video games! • radio components from cellphones! • processors meant for automobiles and medical devices! • reaction wheels meant for dental tools! • cameras intended for professional photography and cinema! • open-source software available on the Internet Source: PitchBook, 2016 Source: Yeh, 2014

9.   9 Number of organizations that built a smallsat between 2006 and 2015, including all third-party and in-house manufacturers! ! Number of NewSpace startups in the world since 2000 (70% U.S.)! ! Number of people still unconnected to the Internet (ITU, 2016) Others! 19% Spire! 21% Satellogic! 26% Planet! 34% Number of Active Commercial LEO Operators By Launch Year (> 50 kg) 0 4 8 12 16 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Communications Earth Observation (EO) Other EO Satellites (< 50 kg) Anticipated For Launch 2016-2024 Key Numbers 3,600! ! ! $22 billion! ! ! ! 2,100! !! ! ! 200! ! ! ! 124! ! ! 3.9 billion Number of smallsats expected to be launched over the next 10 years! ! The anticipated total market value of these satellites (manufacture and launch), a 76% increase over that of 2006-2015! !! Number of Earth Observation (EO) smallsats expected to reach orbit in the 2016-2025 timeframe EXECUTIVE SUMMARY Estimates of Commercial Remote Sensing Revenues USDbillion 0 0.4 0.8 1.2 1.6 2007 2008 2009 2010 2011 2012 2013 Source: Northern Sky Research (2015) Source: Satellite Industry Association (2015) Source: Euroconsult (2015)

11. ! 11 A host of new entrants are proposing novel technologies for services like satellite-based Internet via satellites in low or medium Earth orbits, and they are ﬁnding interest in the venture community. Revenues in this sector are expected to be driven by growing demand from new consumers and enterprises in the emerging world. Landscape I! ! Communication Satellite Services (“SatComs”) Similar to cell towers in developing countries allowing them to forgo building traditional phone infrastructure, sufﬁciently capable and inexpensive satellite networks may become a preferable form of infrastructure for additional services, whether provided by private interests or local governments, which have traditionally entered the space sector through either Earth observation or local communications satellites.! HERE’S AN OVERVIEW OF WHO’S DOING WHAT IN THIS SECTOR

12. ! Companies Constellation planned 4,000 micro-satellites into low Earth orbit 2,000 to 3,000 small, low- orbiting communications satellites • 720 satellites,  40 in each of the 18 orbital plans, weighing 125 kg (275 lbs) each! • Service to be operational in 2019 4,600 low-cost microsats in LEO, each capable of providing Tbit/s data rates, with signal latencies better than or equal to ground based systems BusinessPlan Internet connectivity in remote or underserved areas • Bring high-speed Internet to the remotest parts of the world! • Offer residential service to users of up to 100Mb/s or more in rural or remote areas! • Deliver in-flight Internet access operating at hundreds of megabits per second to commercial airlines, business jets, and high-value government aircraft ! • Deliver speeds up to 1Gb/s to maritime operations, including freighter ships, and oil and gas platforms Provide broadband access to the most isolated of rural communities Vision for a ‘Space Internet’ laid out in late 2015 in a paper penned by Samsung America’s former head of R&D, Farooq Khan, now CEO of mm-wave startup Phazr Investment/ Advancement todate • $1bn (Jan. 2015), following the announcement of the opening of a satellite production facility outside Seattle! !• In Oct. 2015: SpaceX President Gwynne Shotwell downplayed the company’s satellite broadband Internet constellation, saying the project remained “very speculative” pending a deeper assessment of its business case • ViaSat already has one satellite capable of delivering 100Mbps Internet to users in the U.S. ! • A ViaSat-2 satellite, capable of delivering speeds up to 300Mbps, will launch on a SpaceX Falcon 9 rocket in the next few months! • The first two ViaSat-3 satellites will be completed and delivered via Boeing Satellite Systems in 2019 and provide service for users in the Americas, Europe, the Middle East, and Africa ! • The third satellite will go up sometime after 2019 and provide service to users in Asia • $500M (June 2015) ! • Mainly from strategic investors (companies whose financing was in part done to guarantee them a role on OneWeb’s contracting team) N/A Estimated investment needed Figures vary from $2bn to $20bn N/A $3bn to $7bn,  depending on the sources N/A Backersand Partners Google and Fidelity N/A Virgin Group, Qualcomm, Airbus, Hughes Network Systems, Intelsat, The Coca-Cola Company, Totalplay, and cellular network operators Bharti Enterprises of India and Mexico’s Grupo Salinas Samsung simply laid out the technologies that would be needed to cope with the wireless traffic demand anticipated in the 2020s, but said that it has no firm plans to build such a system KeyTech Differentiators N/A • The three ViaSat-3 satellite will join the already 400 other connected satellites in space with a network capacity of the other 400 combined ! • The satellites will be capable of 1 Tbit/s each. Bandwidth will be able to provide fast enough Internet to deliver 4K video to isolated areas and to airplanes • Providing mobile connectivity to such areas cost effectively must entail a new wireless architecture, referred to as multi-comm-core (MCC) that can scale to Tbit/s data rates for ground based local area and wide area access, for wireless backhaul as well as access via unmanned aerial vehicles and satellites! • All three types of links envisaged in the system – uplink from ground station to satellite, inter-satellite link, and downlink to ground or air – would need to operate at data rates exceeding Tbit/s and all parts of the system will need to use phased array antennas to improve coverage and reduce interference !    JOINT-VENTURE Various prototypes of user terminals, including some operated by solar power, that will offer combinations of LTE, 3G, 2G and Wi-Fi and are estimated to cost $250 per terminal! ! ! Satcom Landscape — Large Companies

13. ! 13 Companies Constellation planned Constellation of 12 satellites in Medium- Earth Orbit (MEO, ~8,000 km) The French Space Agency is in charge of the THD-Sat programme that aims to establish a French industrial product line capable of offering network operators access to fast satellite broadband for Internet applications • “SpaceDataHighway”: public–private partnership between ESA and Airbus Defence and Space! • GEO constellation! • Estimated cost: 500M € BusinessPlan • Deliver low latency, fiber-speed satellite network (800 Mbps) for telecommunications operators, Internet service providers, enterprise and government customers in emerging markets! !• Markets: IP Trunking, Mobile/Wireless Backhaul, Maritime, Oil and Gas, Government Complement fibre-optic coverage that is difficult to deploy in rural or remote regions in an effort to combat regional depopulation and stimulate economic and social development • Europe’s first optical communication network, capable of relaying user data in near-real time at 1.8 Gbps! !• Data relay for the International Space Station (2018) and for the European Commission’s Copernicus Sentinel satellites, broadband (1.8 Gbps)! !• Laser link concept between EDRS-A and an Airbus A310 MRTT mid-2016 Investment/ Advancementtodate • O3b Networks was founded in 2007 by OneWeb’s founder Greg Wyler who also helped to create Africa's first commercial 3G mobile and fiber-to-the-home (FTTH) network ! !• O3b was bought by SES $710M • Initial tranche of €40M, followed by a second one of €30M in early 2014! !• The project is currently well underway and should lead to the deployment of high-capacity satellites between now and 2020 EDRS-A, The European Data Relay System’s first relay satellite was launched in GEO in Jan. 2016 as a hosted payload aboard Eutelsat’s Eutelsat-9B satellite KeyTech Differentiators • Global network of gateways! !• High capacity! !• Fiber-like latency • The first equipment includes a 3.5-metre- wide antenna operating in Ka-band, a 170-W amplifier also for Ka-band, and a frequency converter and amplifier in Q and V bands, a region of the electromagnetic spectrum little used by telecommunications satellites until now! !• A THD-Sat-class satellite will offer 20 times more capacity over an area the size of France than current satellites, and it is worth noting that this programme covers a whole range of satellites. Some may even benefit from the flexible payload technologies currently under development • EDRS can relay up to 50 TB a day! !• EDRS-A has two antennas. One large and fixed in place, for beaming data down to Europe via Ka-band radio frequencies, and one small and mobile, which will be used for locking on to low- orbit vehicles such as the International Space Station! !• Normally, low-orbiting satellites must come within view of a ground station before they can send their information to Earth ! !• EDRS instead collects their information from its higher, geo-stationary position via laser and immediately relays it to the ground, dramatically improving access to time-critical and potentially life- saving data ! !!! ! Satcom Landscape — Large Companies

15.   15 “With the 5G vision of providing wireless access in the millimeter wave spectrum, a single standards based wireless technology can be developed for access, backhaul and satellite communications, eliminating fragmentation and thereby reducing costs of providing wireless services.” ! " T h e i n n o v a t i o n s i n t h e ViaSat-3 system do what until now has been impossible in t h e t e l e c o m m u n i c a t i o n s i n d u s t r y — c o m b i n i n g enormous network capacity with global coverage, and dynamic flexibility to allocate r e s o u r c e s a c c o r d i n g t o geographic demand.” ! ! ! "While there are multiple companies and consortia with ambitions to connect the world with telecom, satellite and space technologies, the key technologies underlying ViaSat-3 are in hand today, enabling us to move forward i n b u i l d i n g t h e f i r s t broadband platform to bring h i g h - s p e e d I n t e r n e t connectivity, including video streaming, to all.” Mark Dankberg! Chairman and CEO of ViaSat (June 2016) “I am skeptical that the pictures of small villages using the system to create direct links to the satellites [like Greg Wyler’s OneWeb] depict a realistic market scenario (but they do help with regulatory approvals). More communications backhaul in hard to reach areas is good for the world, but these systems are not likely to be an affordable scalable broadband communications end-user solution for ordinary users.” “The biggest question I have is not whether these system can be built and financed but rather: what is the total addressable market for these communications systems given the cost of the services and the the necessary antennas? Is there enough demand and the prices that will be charged to make the business case work financially?” Tren Grifﬁn! Former VP Business Development of Teledesic,  Senior Director at Microsoft   (July 2016) Key Quotes “Mobile data will continue to grow at unprecedented rates, and adds that satellites, as well as drones and balloons, may be essential to connect ‘the remaining two-thirds of humankind that currently do not have access to the internet.” Farooq Khan! Former Head of Samsung America R&D, CEO of Phazr

16. ! 16 Companies YearFounded / HQ 2013 | Arlington, Virginia #ofsatellites 78-108 60 nanosatellites 200 (initial constellation) 3 in Non-Geostationary Orbit LaunchYear 2018-2019 Late 2017 3 sats by Q2 2017 2019 Orbit LEO 1,400 kilometers fixed-plane polar orbit N/A Equatorial coverage from 15° south latitude to 15° north N/A Band Ka N/A S and L N/A BusinessPlan • LeoSat is not an Internet-for-all system. It is designed for large corporations or governments that want to move huge stores of data around the globe at high speed! • Target certain applications that don’t require contiguous coverage and could be ok with data being sent up to the satellites and coming down somewhere else later on (scientific research at the poles, for instance, or seismic data being produced at the poles) • Provide worldwide internet access make customers pay for the high flexibility and the ability to provide multiple services (S to Ka band, for telephone, digital, television)! • Large aperture expandable antennas with reflectors that can change ground patterns on the fly and enable high bandwidth @ 1 Gbps Provide cheaper data, voice and instant messaging services in the equatorial region • Network of three satellites to support the thousands of smallsats orbiting Earth anywhere, anytime! • Audacy is looking to serve a dozen of high-capacity customers and a thousand of smaller ones sharing bandwidth simultaneously ! • Help Earth observation companies send back data to customers, spacecraft-launching firms keep an eye on their rockets or help internet service providers keep track of large constellations of satellites Markets/ Applications Maritime Oil & Gas Exploration & Production, Government, Media Wireless and Mobile Telecom Backhaul and Trunking, including 4G Enterprise Mobile Telecom Backhaul and Trunking Mobile Telecom Backhaul Space communication, Government Investment/ Advancementto date • $410k of bridge financing from undisclosed investors (Jan. 2016)! • Spectrum Allocation: Filled an Advance Publication of Information (API) in 2015 and registered the network with the International Telecommunication Union (ITU) • Raised $3M (Feb. 2016) • Investors: Jerusalem Venture Partners, Liberty Media • Raised $4.5M (2016) ! • Acquired Burleson Energy for GBP 10.5 million, through a reverse merger, resulting in the combined entity trading on the Australian Securities Exchange(May 2016)! • First three satellites fully funded! • Scheduled rideshare launch aboard a Polar Satellite Launch Vehicle from the Indian Space Research Organization! • Other launch contract with Virgin Galactic’s LauncherOne • Raised $2M (Seed, Sep. 2015)! • Investors: Metatron Global, StartX (Stanford accelerator fund), Scrum Ventures, AME Cloud Ventures, Venture Studio, Patrick Sigrist, Danhua Capital, Wretch Chien! • Plans to close a Series A round of at least $15 million in Aug. 2016 Estimatedcost $2.5 billion to $3 billion $60M ($1M/satellite) $120 million to $160 million $750M ($250M in funding and $500M in government-backed debt) Backers/Partners andEarly Traction • Secured contract with the National Science Foundation (NSF) to provide connectivity in Antarctica! • The stratup has received confirmation from Thales Alenia Space in 2015 that from a technical point of view, the constellation can be built to the specs that they need to offer the solution that they are trying to bring to market Sat-Space Africa of Mauritius has entered a binding letter of intent ! • Secured contract with Space Systems Loral ! • Filed Spectrum KeyTech Differentiators • High-capacity platform, very high bandwidth and low delay (latency < 50ms)! • Low-cost, electronic beam- forming antennas that allow tracking and signal hand-off ! • New generation of solid-state client stations using electronic beam steering • Patent pending integrated network of intersatellite capability (“mesh constellation”)! • Customer links up to 1.2 Gbs synchronous connections worldwide! • Only system that can provide 4G backhaul in its native form and comply with the LTE standards • Ability to deflect the trajectory of each satellite’s signals by changing the shape of the nanosat’s reflector has yet to be proven but would be a game changer if real (allows to virtually switch between satellite services and to adapt to evolving customer needs)! • High Bandwidth (1 Gbps), unprecedented for a nanosatellite • While the satellites will be built with a design life of five to seven years, the company plans to deorbit them after four. ! • On an annual basis, the company wants to shed 25% of the constellation, replacing 50 satellites with new iterations Audacy’s satellites will act as “cell towers in the sky”, relaying connectivity in space while sitting in a higher orbit and communicating with additional satellites or ground stations. The result is dramatically improved access to time-sensitive data, and an extended coverage umbrella for any satellite launched in the coming years (LEO, MEO, CubeSat) 2009 | Airport City, Israel 2015 | U.K., Israel, Australia ! 2015 | Palo Alto, CA Satcom Landscape — Startups “You hear talk about serving the other 3 billion unconnected — a wonderful thing for Google or Facebook. We are a commercial company. We’ll stick with the top 3,000 rather than the other 3 billion.” Vern Fotheringham! Former CEO of LeoSat and satellite antenna builder Kymeta “Since we are targeting a very specific market and we want affordable prices, we need to have affordable end user devices for people in Africa. We are exploring some possibilities anywhere between a dedicated satellite phone up to connected devices, or even a hotspot device that will enable communications to people.” Meir Moalem! CEO of Sky and Space Global = OSV has direct C-level ! contact with the startup

17. ! 17 Companies YearFounded / HQ 2015 | Toronto, Canada #ofsatellites N/A 16 N/A 10-15 (initial constellation) LaunchYear 1 sat in 2017 N/A N/A 2 3U CubeSats by S2 2017 Orbit N/A N/A N/A LEO, polar orbit Band N/A N/A N/A Ku BusinessPlan • Nano‐satellite platform to provide low‐cost IoT data connectivity for sensors globally through LPGAN (Low Power Global Area Network)! • Provide connectivity for the Internet of Things (sensor data only) ! • Subscription-based business model: less than 5€/year per connected device for 1 message a day • Space-based secure cloud storage network infrastructure, completely independent and on its own telecom backbone ring! • Intended for cloud service providers looking for a safe place to store or process data for large government organizations or multinational corporations • Optical communications downlink- as-a-service system! • Improve the wireless transfer of data and accommodates accelerating demand for accurate and frequent data collection from satellites in LEO and from high-altitude unmanned vehicles! • Provide an alternative transmission mechanism designed to be faster, more secure and available at a lower cost to traditional radio-frequency transmissions • Backhaul for IoT devices in remote locations! • Provide real time access to satellites in the same orbit! • Enable other satellite operators in LEO to downlink their data using Kepler satellites Markets/ Applications • M2M! • Low‐cost tracking/observation! • Smart agriculture, forestry, climate control, geology, oceanography • Large enterprises! • Storage providers ! • Not designed to offer cloud storage for small businesses or individuals • Earth observation! • UAV data • Space communication (intersatellite)! • M2M: ship tracking, seismic activity sensors, greenhouse gas sensors, livestock, polar ice measurement sensors Investment/ Advancementto date Currently raising a 3M € seed round • $5M (Series A) in March 2016! • Series B underway Undisclosed amount of venture funding from parent-company Allied Minds (Mar. 2015) • $5M (Seed) in August 2016! • Investors: IA Ventures, SK Ventures, Zelkova Ventures, Plug & Play Ventures, V1.vc, Liquid 2 Ventures, Techstars, BDC Capital IT ventures! Estimatedcost N/A $460 million N/A N/A Backers/Partners andEarly Traction • 1M € subsidy from ESA! • 1M € subsidies from UE & NL! • Agreement with Agentschap Telecom N/A Partnership with The Aerospace Corporation, The Draper Laboratory, and with MIT’s Space, Telecommunications, Astronomy, and Radiation Laboratory 6 to 10 Letters of Intent (LOIs) from potential satellite operator customers KeyTech Differentiators • Data from sensors will be gathered by Magnitude’s constellation of smallsats and will be made available via their web portal: once a day, every hour, or every 15 minutes! • 10x cheaper than satellite competitor's expected future prices • Global communications backbone that does not touch any public networks! • Universal global antenna capable of connecting to any radio source! • The data will not travel through any jurisdiction it is not allowed to cross! • The SpaceBelt consists of three types of satellites: some are designed for maximum throughput, others are built for data storage and processing, while a third type of satellite is intended only to relay data • High data throughput with low latency: the data downlink rate is currently designed for up to 2.5Gbps, with an increase to 10Gbps planned for the future! • Small form factor: Seamlessly ﬁts satellites of all sizes, making it easy to implement! • Cost effective: lower $/bit than equivalent radio-frequency (RF) systems! • Customized service: upfront design of an optical communications system that is matched to each customer’s speciﬁc requirements and satellite platform! • Greater security: optical communications is inherently more secure! • Currently, approximately 27% of these smallsats generate more data than they are able to downlink • The Kepler base stations will be LTE/3G enabled, and aggregate data from remote M2M devices within a 15km range! • Rugged user terminal to be provided that can survive harsh environments that would aggregate sensors data and beam the data up to the satellite when it is overhead ! • Once the sensor data is picked up, it will be downlinked back to the gateway (“data storing- forward” service, but targeted toward the M2M/IoT space) 2015 | Amsterdam, Netherlands 2015 | Los Angeles, CA 2015 | Boston, MA Satcom Landscape — Startups = OSV has direct C-level ! contact with the startup

18. ! 18 Major Investments! SpaceX (from Google and Fidelity) $1.2 Bn! Skybox - acquired by Google $500 M! OneWeb $500 M! Planet $184 M! Kymeta $127 M! Spire $80 M! Mapbox $62 M! Urthecast $55 M! Blacksky $28.5M VC Activity – SatComs & EO “Space is becoming more integrated with other tech sectors” Joe Landon! Chairman of the board of the Space Angels Network, in a talk at the NewSpace 2016 conference in June 2016 in Seattle 3 most active VCs! in space startups since 2012! ! ! Lux Capital, RRE Ventures, and Bessemer Venture Partners! Others include Khosla Ventures, Promus Ventures, Founders Fund $2.3 billion ! invested in space companies in 2015 $1.8 billion ! ! was venture capital funding, more than the previous 15 years combined 70 ! ! ! different VC ﬁrms invested in at least one space company in 2015 “There’s this canonical thing about a startup needing to pitch a 10X improvement to be worthwhile. But in space we’ve seen 1,000X, and really we’ve seen 10,000X.”! Steve Jurvetson! Partner, Draper Fisher Jurvetson "We will see an increase in the number of space unicorns with valuations of north of a billion dollars, though this might take several years." Richard M. Rocket! CEO of NewSpace Global

19. ! 19 Number of Companies Submitting   SmallSat API*s to the ITU NumberofSmallSatAPIs 0 22.5 45 67.5 90 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8987 43 35 88811 4 910 3 Have the 1990s returned?! ! • Back then, the focus was on the development of constellations of satellites to provide telephone and data services! • Globalstar, Iridium, and ORBCOMM got far enough to actually deploy their systems, but there were many more concepts being discussed in the 1990s! • Best known of those was Teledesic, which in its early planning proposed launching nearly 1,000 satellites for high-speed data services • But there were many more in various stages of development, like Celestri, Ellipso, Final Analysis, and SkyBridge, among others! • Beyond a couple of demonstration satellites, none of these systems got off the drawing boards, killed by the telecom bust at the end of the 1990s that also sent Globalstar, Iridium, and ORBCOMM into bankruptcy protection and reorganization! • Are things different this time?   Today, in addition to making investments, the tech giants seem aware of the existing ecosystem and competing technologies, and are teaming with other ventures, such as SpaceX and LeoSat. They are also partnering with industry leaders like Airbus, Intelsat and Eutelsat to increase the chances of success Analysis! Satcom ! Startups Companies SpaceX and Google OneWeb Thales Group N/A N/A N/A N/A Filing Country Norway United Kingdom France Canada Canada Liechtenstein Norway Constellation  Proposal STEAM-1 and STEAM-2 call for a total of 4,257 satellites distributed among 43 orbital planes 720-smallsat Internet constellation MCSat, covering one series of 800-4,000 satellites at different altitudes and different orbital architectures in LEO, MEO, and highly elliptical Earth orbit CANPOL-2, designed as an 9- plane architecture with as many as 8 satellites per plane in low and highly elliptical Earth orbit; up to 72 satellites for frequencies usually associated with military networks COMSTELLATION would use 794 satellites in LEO flying in 12 orbital planes 3ECOM-1 calls for 24 satellites in each of 12 orbital planes, or 264 satellites in total ASK-1 would use a constellation of as many as 10 satellites in highly elliptical orbit to assure coverage at high latitudes Spectral Bands Ku for STEAM-1! Ka for STEAM-2 N/A Ku, Ka VHF, UHF, X, Ka Ka Ku, Ka X, Ku, Ka Filings for Constellations of Satellites, Nov. 2014 - Jan. 2015 Source: International Telecommunication Union (ITU) *: Advance Publication Information

20. ! 20 Traditional players are also trying to protect their positions on the market, with geostationary satellites operator SES taking control of O3b Networks, and Intelsat partnering with OneWeb as a way to de-risk its own business model. By what   milestones   should we   measure progress? Software Advances in Image Recognition and Analysis Advances in image processing are coming not just from better optics, but from more sophisticated software for processing imagery data. With the expectation of processing large volumes of geospatial and other imagery data, smallsat startups are pushing automated image recognition and machine vision capabilities that are based on machine learning and will eventually be used to process larger volumes of data faster. Cloud Computing   and Big Data Analytics Advances in cloud-based data analytics is gradually minimizing the need for onboard data processing by allowing most of the image processing and analysis to be done on the ground. Such advances can enable startups to deploy proprietary image processing software on cloud- enabled infrastructure and services combined with large-scale distributed search infrastructure, enabling real-time storage, processing and analysis of large volumes of data, which has the potential to transform access, usage, and economic exploitation of space-based data. • Finance! ! • Strategic alliances   (both on the distribution and operations sides)! ! • Spectrum Allocation Increasing Maturity and Falling Cost of Technology! ! Technical advances driving space are not limited to IT alone (e.g., low-cost sensors, low- power processors, scalable cloud computing, and ubiquitous wireless connectivity); they include communications, miniaturization, advanced manufacturing, and more. ! The following technology-based developments are driving activities in space:! Commercial Off-the-Shelf (COTS) Hardware Components Driven by the commercial electronics industry, digital COTS components are now bringing multiple benefits ranging from increased functionality (such as incorporation of communication and sensing components directly on processor platforms) to more powerful capabilities (from miniaturization) at a smaller price. As more COTS hardware is integrated into space systems, all forms of data collection, storage, processing, and transmission can be expected to improve across all parts of the space sector. Two areas where COTS technology has become an especially strong driver are processors and storage devices. The communications constellations fever doesn’t end with these new mega- constellations! Historical players Iridium and Globalstar also made recent investments renewing their ﬂeets Iridium Next is deploying 66 LEO satellites and uses the concept of ‘hosted payloads’ to provide a global, spaced-based Automatic Dependent Surveillance - Broadcast (ADS-B) for aviation, commercialized by the Aireon consortium. The business model consists in sharing the installed capacity, i.e. the launched satellites, for providing secondary applications that increase the return on investment. ! Globalstar ﬁnished in 2013 the deployment of its Second Generation constellation, with 24 LEO satellites.

21. ! 21 Flat Panel Antennas (FPAs) ! !   FPAs, coupled with electronically-steered mechanisms, are increasingly viewed as the key enabler for High Throughput Satellite and Non- Geosynchronous (NGSO) systems to unlock higher satellite bandwidth efficiencies with minimum weight penalty. Innovation in FPA technology is moving very quickly with players such as Kymeta, Phasor and C-Com. Kymeta has established partnerships with Toyota for land- based mobility, Panasonic for sea-going vessels, and Inmarsat for airborne applications. “By unlocking fixed spectrum to a mass market of mobility users, Kymeta is helping the satellite industry attain some of the largest growth it has ever seen.” The keyword for the growth of satellite antenna is mobility! Large LEO satellite deployments on the horizon promise a new wave of connectivity that will facilitate broadband access to moving platforms such as trains, cars, ships, and aircraft. Customers need to connect more devices from all mobile platforms with more data, more capacity, and greater coverage. ! ! The development of ground terminal technology will be paramount to the success of the new LEO constellations. Terminals need to be low profile, lightweight, and spectrally efficient and capable of switching seamlessly from beam to beam. These new designs could mean antennas better suited for car rooftops, plane fuselage, or even, for personal smartphones. T r a d i t i o n a l p a r a b o l i c antennas can be bulky, heavy, with many moving parts, and there are also i s s u e s w i t h s t e e r i n g mechanisms. These are big issues for the provision of b r o a d b a n d o n m o b i l e platforms. 2 big trends in commercial spacecraft   are influencing satellite antenna manufacturers and integrators! ! 1) The launch of traditional geosynchronous satellites using new high throughput designs in both Ku and Ka frequency bands. Intelsat EpicNG and Inmarsat Global Xpress are classic examples of each type ! ! 2) The launch of smaller Medium Earth Orbit (MEO) and Low Earth Orbit (LEO) constellations from companies like LeoSat or Sky and Space Global that present technical, cost and implementation challenges ! ! These emerging satellite technologies will require field-proven antenna and terminal manufacturers to ensure that the user experience is able to deliver on its promise Bill Marks! CCO and EVP of satellite antenna manufacturer Kymeta Satellite Antennas

22. ! 22 The Satellite Play in the Connected Car Market! An area where satellite technology can have an advantage is the amount of data that can be transferred at a single time. One of the possible areas of investigation for car manufacturers and satellite operators is whether Over-The- Air (OTA) software updates for quality management, recall management, or sending features or notices can be done over a majority of the country through satellite-based communications and then following up on the remaining vehicles over the cellular channel. But a n i n c r e a s i n g n u m b e r o f c a r manufacturers worry that the envisioned services may break carrier network management thresholds, hence their i n c r e a s e d i n t e r e s t f o r s a t e l l i t e connectivity.! ! This could reduce the share of telcos in the connected cars market, but to an extent that has yet to be determined. In Europe, satellite could play a part in the rollout of the Emergency Call safety service, scheduled to take place in 2017. W i t h t h e e v e r - growing need within the car industry to deliver pervasive broadband connectivity to its vehicles, this market fits very well with satellite companies’ capabilities even if major challenges still need to be overcome to rival with the solutions already offered by the cellular industry. ! ! The prevalence of cars traveling in urban areas is one of the downsides for satellites, since “urban canyons” can make it difficult to deliver a consistent satellite service. But that is something the industry is thinking about and trying to fix quickly. The Connected Car Market “We will have to see how the business models evolve over the next three to ﬁve years but the technologies are there. We are also monitoring the developments in the vehicle-to-vehicle and infrastructure communications space and satellite technology could be a part of the solution there as well.” Pom Malhotra! Senior Manager of Connected Vehicles at Audi of America Source: Via Satellite (March 2016)

23. ! 23 Rupert   Pearce! CEO of Inmarsat Karim   Michel   Sabbagh! CEO of SES The Connected Aircraft Market New Applications For The Aeronautical Market! Over the next decade there is the potential that aviation could become one of the largest business for satellite operators, because of the scale of the aviation industry, its sectoral growth dynamics, and because it is almost uniquely an area where mobile satcoms can service actual needs of consumers — passengers traveling on commercial airlines. As such, there is the potential for aviation to vie with the maritime business as the largest business growth segment for satellite telecommunications companies. “The market of connected aircraft would open up a new box of solutions that we have not yet fathomed today.” “Aviation could become our biggest market.” The aeronautical market is experiencing   an increasing need for latency-sensitive connectivity, hence the emergence   of ideas exploring the capacity of LEO satellites. Air-To-Ground (Cellular)  v.s.  Satellite  In-Flight Connectivity Connectivity in this segment is about providing broadband connectivity that is comparable to the home or office experience, but also about improving the efficiency of the travel route, fuel consumption, safety by managing airlines data instantly. ATG TOWER (GOGO) !!Aviation communications provider based in North Carolina that is building a 4G broadband ATG network across the continental United States that can be used on a standalone basis, or in conjunction with satellite-based connectivity services for airlines operating international flights. 3 Mbps! ! 37 Mbps! ! 10 Mbps! ! 70 Mbps Gogo’s current ATG speed standard! ! 4G LTE smartphone on the ground! ! New ATG technology ! ! New Gogo in-flight dual Ku-band satellite-only service Based in Chicago, Gogo provides ATG and Ku-band satellite-based connectivity services to the airline industry. Gogo signed an agreement with Intelsat and OneWeb to access their shared high throughput GEO and planned LEO satellites respectively, enabling pole-to- pole coverage. 6 $700M $5.4bn 72 62% $130k #  of players offering cabin connectivity services (Gogo, Panasonic, GEE, Thales, SITA OnAir, ViaSat) Total revenues from passenger connectivity services in 2015! Expected total revenues from passenger connectivity services in 2025! # of airlines with installed or soon-to-be installed passenger connectivity systems ! Percent of the global fleet to be connected by 2025 (23,000+ commercial aircrafts)! Average annual revenue per commercial aircraft in ! 2015

24.   24 User terminals from smallsat startups become mainstream in Africa, creating access to free mesh networks Flat-array satellite antenna become embedded in smartphones, enabling direct point-to-point satellite connectivity Satellite speed/latency outperforms fiber for long distance telecommunications Increasing demand for more capacity that telcos cannot supply; high capacity infrastructure becomes directly linked to satellite Failure to secure spectrum for 5G applications The physical telcos’ infrastructure becomes insecure (because of the reliance on third-party cable systems and/or insecure satellite access gateways) Failure to realize new value chain positioning and share customer ownership with disruptive players Inability to extract value from existing network assets and failure to address a wider mix of networks technologies Failure to shape new regulatory landscape Failure to adopt new routes to innovation and to attract new talents 5 3 7 9 2 4 1 6 8 10 TOP 10 RISKS FOR TELCOS

25. ! 25 Satcom Landscape Conclusion To keep in step with surging demand for Internet connectivity, the telecommunications satellite market has also had to ramp up its activities. Whether providing Internet for aircraft, ships or even homes and companies in remote areas, satellites are a vital complement to land-based networks. Constellation projects simply confirm the value of satellites in delivering such a broad range of services.! ! The emergence of U.S. projects for satellite constellations supported by new telecom market players is both a challenge and the proof that space technologies have reached maturity.! ! Based on our review of the smallsats landscape, we find that while the timeframe of deployment of satellite constellations causes uncertainty regarding their effectiveness to attract customers, and while their competitiveness with respect to the cellular industry remains unknown, they may present a risk of disruption for telcos in the long-term. “Almost regardless of business model, those Fortune 500s today who ignore what smallsats are doing (i.e. earth imaging, providing communications or Internet services) are going to be on the wrong end of ﬁnancial evolution in the next decade.” Richard M. Rocket! CEO of NewSpace Global

27. ! 27 Improvements in the performance of satellite-based and other instruments as well as the falling cost of data collection, processing, storage, and analysis is leading to growing demand for imagery and imagery based intelligence products worldwide. As a result, an increasing number of governments and newly created private ﬁrms around the globe have begun participating in Earth observation (EO) activity. The technology-enabled breakup of functions makes it easier for new entities to enter the sector, and specialize in one or more aspects of the data cycle. Landscape II! ! Earth Observation and   Remote Sensing Satellites The standardization of smallsats with the CubeSat concept proposed initially by Cal Poly San Luis Obispo and Stanford in 1999, is arguably the main contributor to a democratization of access to space. Launched as piggyback payloads of bigger satellites or from the International Space Station by NanoRacks, this piece of technology is changing the way business is done in space. Agencies such as NASA and ESA are also playing a fundamental role in this “commoditization of space”, by granting affordable (usually under $100k) or free access to launcher real-estate to universities or small companies that want to test new technology in LEO. HERE’S AN OVERVIEW OF WHO’S DOING WHAT IN THIS SECTOR

29. ! 29 Satellites-as-a-Service   is the Key Emerging Business Model! The remote sensing and Earth observation domain has been seeing some disruptive approaches, starting with the! appearance of Skybox Imaging in 2009, tackling ! an underserved demand for high-resolution images. ! During a period where access to remote ! sensing images was both difficult and ! expensive, SkyBox Imaging introduced two ! novelties to the industry: the delivery of   ‘the right data at the right time’ at a lower cost,  and a new approach for data exploitation,   by allowing third parties to exploit the unsold   images through its platform in order to   extract insightful information for different   businesses. After totaling $91M   in 3 rounds of investment, it eventually   was acquired by Google in 2014 for ! $500M and renamed Terra Bella. Increasing global interest and participation in EO ! Technological advances in optical imagery! Growing demand for data and services ! New uses of space- based data by the IT sector Growing Demand for   Geospatial Data-Based   Analytics and Services! Responding to a growing demand for geospatial   data-based analytics and knowledge services, a number of   start-ups are launching their own satellites, such as, Planet,   Skybox, and Spire, among others, or using commercially   available imagery to provide geospatial data analysis. Large data  companies (including Google, Facebook, Apple, and Microsoft in the  U.S., and Baidu in China), are also investing in advancing machine   learning based automated image recognition capabilities that will be able  to process larger volumes of data faster with the goal of fusing multiple data   formats into search and other services. These companies are treating space   as just another place to gather information to distribute to a wide range of   customers. Advances in geospatial data-based analytics are driven by advances in  large-scale data analytics and cloud-based supporting infrastructure.   Improved software capabilities— particularly in image processing, machine-learning,   artificial intelligence, and data integration—are opening up new applications in areas  including space-based observation, detection, and monitoring. Increasing Need for Streamlined Data Management! The volume of EO data is increasing rapidly. ESA has  archived over 2 petabytes of EO data, while startups like Planet are accumulating terabytes of data per day. Hence an increasing need for more streamlined   data processing, increased data storage capacity,   and a way to integrate and organize old and   new data sets. Many of the challenges that ! the EO data management community ! faces are common to those in other ! communities using big data. As a   result of the common challenges,  trends in EO data management   reflect more general big data  trends, including using   cloud-enabled large-scale   computation and search   and analytics   infrastructures. Increasing investments within the private industry! In the past decade, two-thirds of government satellites were for EO and between 2007 and 2013, commercial revenues increased over 300%. Because space-based observations of the Earth can now better help promote sustainable agriculture, conserve biodiversity, respond to climate change, protect against natural and human-induced disasters, manage ecosystems and energy resources, understand the environmental sources of health hazards, safeguard water resources, and improve weather forecasts, EO has attracted increasing participation and investment among governments and within private industry.

30. ! • Low-cost daily imaging of entire Earth to support humanitarian, environmental and business needs. ! • Each image is processed through its automated data pipeline and delivered to customers via API and Web tools.! • 20% of the constellation can fail at anytime without losing imaging capacity! • 60+ sats (3U, 4kg) in orbit! • Weekly revisit rate, 3-m res.! Markets: Geoanalytics, Natural Resources, Infrastructure, Finance Raised to Date: $184M (4 rounds) | Post Valuation: $1.13B! Investors: Draper Fisher Jurvetson, Lux Capital, Capricorn Investment Group, O’Reilly Alpha Tech Ventures, Founders Fund, First Round Capital, International Finance Corporation, AME Cloud Ventures! Partner: Orbital Insight (Aug. 2016) ! !!!!      2010! San Francisco, CA • Increase the supply of imagery available to customers that are currently users of Landsat data by providing higher res. imagery on a more frequent basis than Landsat! • Launches Q2 2016, 2019! • Daily revisit rate, 2.5-m res.! Markets: Precision Agriculture, Natural Res. Raised to Date: Undisclosed Seed (Dec. 2015)  ! Investors: Vast Ventures, Noosphere Ventures and Spatial Ventures !   2014  Mountain View, CA • Cloud-based UrthePlatform will enable growers to proactively measure and manage crop health and identify pest infestation early enough to prevent major losses (via OmniEarth)! • Integrated multispectral optical and synthetic aperture radar commercial satellite constellation! • 16 satellites by 2020! • Daily revisit rate, 50-cm res.! Markets: Geoanalytics Asset Monitoring, Environmental Monitoring, Intelligence, Finance (retail and freight monitoring) Raised to Date: $14.7M (3 rounds), then IPO: $55M (June 2013)! Acquired Longford Energy for $25M through a reverse merger resulting in the combined entity trading on the Toronto Stock Exchange (Mar. 2013) ! !!!!!    2010 ! Vancouver, Canada • “Platform as a service” commercial-grade high resolution imaging, video, and data at a fraction the cost, every few minutes to help tackle the world’s problems! • 16 satellites by 2016! • Few hours revisit rate, 1-m res.! Markets: Natural resources, Oil & Gas, Agriculture Raised to Date: $4.5M  ! Investors: Tencent Holdings, Valor Capital Group, Fundo Pitanga !         2010 ! Buenos Aires, Argentina • Images of the planet in near real-time: “Google Earth Live” ! • “Pay-per-picture” business model (high- resolution imagery at less than $100 per 30- square-kilometer image)! • Capture images or video at a speed of one frame per second! • Provide high-resolution images in a couple hours versus days or weeks at one-tenth the cost of the current industry average! • 6 sats by 2017, 60 by 2020! • Few hours revisit rate, 1-m res.! Markets: Location-based services, Defense Raised to Date: $28.5M ! Wholly owned subsidiary of Spaceflight Industries                 !  2015   Seattle, WA Earth Observation Startups - with platform Example of web-based platform for EO data (Astro Digital) Selection of the area of interest   and imagery history Targeted geoanalytics, selection of the remotely sensed imagery Actionable, tailored analyses,   directly to the customer “It’s a really, really big opportunity with very attractive economics. There will be a whole other wave of businesses that build on the data streams or are ancillary to these smallsat companies.” Steve Jurvetson! Partner, Draper Fisher Jurvetson, Investor in Planet = OSV has direct C-level ! contact with the startup

31. ! • Provide high resolution imagery and high- definition 1080p video at 30 frames per second! • 3 sat. in orbit (24 by 2017)! • Daily revisit rate, 90-cm resolution! Markets: Real Estate, Construction, Oil and Gas Acquired by Google (2014) for $500M | Raised Prior Acquis.: $91M  Investors: Khosla Ventures, Crunchfund, Y Ventures, Bessemer Venture Partners, Peterson Partners, Leader Ventures and Asset Management Venture   !  2009  Mountain View, CA • Hyperspectral imaging for natural resource observation and analytics! • 1 sat deployed (2015), planned constellation of 12 sats! Markets: Precision Ag, Oil&Gas, Hedge Fund, Water Usage Raised to Date: $22.61M ! Investors: Idea Bulb Ventures, Tencent, Galvanize, Conversion Capital, Grishin Robotics, Galvanize Ventures, Vast Ventures, Seraph Group, Space Angels Network, Larry Page !     2009  Redmond, WA • Manage natural resources and track space debris! • Enable better understanding of ecological systems! • Downlink at 3 Gbps! • Approx. cost: $3.5 billion dollars! • Revenue would be approximately 60% EO and 40% SSA! • 40 sats by 2020 (750 kg each)! Markets: Space Situational Awareness (SSA), Government, Agriculture, Mining, Fishing, Energy, Oil and Gas, Forestry Raised to Date: Undisclosed, but interest from Canadian pension funds, the Fonds de Solidarite, and Caisse de depot et placement du Quebec! Partners include IBM and Boeing   NorStar Space Data ! !      2011  Montréal, Canada • Change-detection products: Data analytics, image processing, data fusion, predictive analytics, at low resolution! • 18 sats by 2018, daily revisit rate, 2-m res! Markets: Energy, Agriculture Raised to Date: $10.32M! Investors: Space Angels Network, Point Judith Capital, Borealis Ventures ! !2014 ! Arlington, VA • On-demand satellite imaging, geospatial imaging and analytics of remote sensors. ! • Development of mobile, desktop and social networking apps for direct user access to their satellite data.! • Pricing ranges from $1-$3 for archived and freshly tasked high-resolution imagery! • License arrangement with NASA Ames associated with two pending patents! • 48 sats (9 in 2016), (12U, 22kg)! • Daily revisit rate, 20-cm resolution ! Markets: Defense, Finance, Intelligence Raised to Date: $4.50M | Upcoming $49M Series B Round! Investors: Firsthand Capital !     2013       ! San Jose, CA Earth Observation Startups - no platform (yet) • Low-cost SAR imagery ! • Planned constellation to provide 1-m resolution images every 3-6 hours globally and every 45 minutes in equatorial regions by 2020! • Estimated budget: $200M! Markets: Search & Rescue, Illegal fishing, Oil & Gas, Maritime Domain Awareness, City Planning/Mapping Raised to Date: Unknown  Partners: Data Collective, Hacking 4 Defense, AME Cloud Ventures, PejmanMar Ventures, Stanford Center for Entrepreneurial Studies ! !  !!      2016! Palo Alto, CA • Non-visual data: Identify, locate and analyze RF signals globally to generate reports on wireless signals that can be used to track and monitor global transportation networks, assist with emergencies, as well as other data analytics services. Customers: cellular and satellite networks among others! • Identify RF interferences to help ensure spectrum sustainability and security! • Assist wireless network users to make effective use of their assigned spectrum! • Planned constellation of 18 sats, 15 kg each! Markets: data analytics services, communications, maritime situational awareness, commercial planning and monitoring! emergency response Raised to Date: $3.25M | Post Valuation: $4.44M  Investor: Allied Minds (Boston-based parent company and VC firm)! Partners: Lockheed Martin, Deep Space Industries !                   !        2015! Boston, MA • Monitor the bend in GPS radio signals to acquire data profiles for temperature, pressure and humidity ! • Monitor illegal fishing, maritime trade, search and rescue, and piracy! • 100K daily GPS GPS Radio Occultation signals readings! • 100 sats by 2017! Markets: Government, Enterprise,Maritime, Weather Data Raised to Date: $80M  Investors: Promus Ventures, Bessemer Venture Partners, Jump Capital, RRE Ventures, Lemnos Labs !     !      2012 ! San Francisco, CA Remote Sensing From Space = OSV has direct C-level ! contact with the startup

32.   32 • Satellite imagery processing tool: geoanalytics platform for ingesting, processing, classifying, and analyzing all types of geospatial data at massive scale! • Uses satellite imagery to monitor changes at 6,000 industrial facilities in China. The company’s China Satellite Manufacturing Index serves as an alternative to notoriously inaccurate Chinese government data.! Markets: Geoanalytics, Intelligence Raised to Date: Unknown  Investors: Unknown !       2014! San Francisco, CA • Forecasts global commodity crop production that beat USDA's estimates! • Uses machine learning to generate daily forecasts, automatically! • Releases free corn and soy forecasts, at the national, state, and county level, every week throughout the growing season! Markets: Agriculture, Finance, Insurance Raised to Date: $8.38M | Post Valuation: $25.39M  Investors: Cultivian Sandbox, Crosslink Capital, Data Collective, TenOneTen Ventures, ValueStream Labs ! !      2014! Los Alamos, NM • Large-scale analysis of satellite and UAV imagery, and geospatial data from connected cars and IoT. ! • Count and measure roads, airplanes, clouds, haze, lakes, land, buildings, and oil tanks to provide an understanding of the world! • Subscription pricing! Markets: Retail, Agricultural Yield Forecasting, Competitive intelligence, Financial Services, Insurance, Energy industries, NGOs Raised to Date: $30.50M | Post Valuation: $75M! Investors: Google Ventures, In-Q-Tel, CME Ventures, Sequoia Capital, Lux Capital, Bloomberg Beta ! Partners: DigitalGlobe, Airbus, Planet, UrtheCast, World Bank               2013! Palo Alto, CA Provide consulting, solutions integration, project management and an open marketplace for aerial data! Markets: Aerial Data Analytics Raised to Date: Unknown ! 2016! San Francisco, CA • Provide weekly measurements of oil tank levels and changes, ship monitoring, and car counting! • Uses satellite synthetic aperture radar (SAR) imagery to deliver insights on “Ursa Maps” (to be released in 2016), an easy-to-use web- based mapping application! • Plans to operate its own SAR satellite constellation with hourly revisit times and direct downlink capability to fielded users! Markets: Oil and Gas, Maritime, Retail, Infrastructure, Finance Raised to Date: $350k  Investors: Unknown ! Ursa Space Systems! !!!!  2014! Ithaca, NY Data Analytics / Machine Learning Space Startups Competitive Landscape! EO Startups lower resolution ! to no satellite asset Earth Imaging ! or Remote Sensing   Capabilities ! !higher resolution Data Analytics / Machine Learning Capabilities = OSV has direct C-level ! contact with the startup

33. ! 33 • Provide cost-effective commercial “rideshare” launch services (81 payloads to date around the world, 35 planned through 2018) and spacecraft communications and operations for small-satellite customers! • Offer affordable data plans and an assortment of standardized, compatible radios with published pricing to simplify space to ground communication (first ground station is operational in Seattle, additional ones coming online in 2017 across six continents)! • The company wants its own constellation of satellites for Earth imaging to let anyone with a smartphone request images of any place on Earth in 90 minutes, for $90! Markets: Communications, Launch Services, Earth Observation Raised to Date: $53.5M | Post Valuation: $225.72M  Investors: Mithril Capital Management (Peter Thiel’s fund), RRE Venture Capital, Vulcan Capital and Razor’s Edge Ventures! Parent company of BlackSky                       !        1999! Seattle, WA • Network of ground stations to provide real- time space communications services for satellite operators! • Provide global satellite ground station infrastructure as a service! • Aggregate the unused capacity of existing satellite ground stations around the world! Markets: Space Communications Raised to Date: Unknown ! ! 2015! Seattle, WA Commercial Weather / Environmental Data Startups • Commercial weather satellite constellation! • 12 satellites by 2018! Markets: Weather Forecasting, Aviation, Shipping, Offshore Oil and Gas, Defense, Intelligence, Energy, Agriculture, Insurance, Retail, Transportation Raised to Date: $27M  Investors: Moog, Earth Investments, Millennium Engineering and Integration !     2012! Bethesda, MD • Collect data about Earth’s climate and environment (water, air quality, vegetation, ocean circulation, invasive species, and solar activity)! • Data will be provided free for any research purpose! • 1 sat. (2016), then 24, < 100 kg each! Markets: Environmental Earth Observation Raised to Date: $5.2M  Investors: Undisclosed angel funding (2015)       2006! Pasadena, CA Constellation of nanosatellites for weather intelligence to provide businesses with global weather/hazard observation insights! Markets: Aviation, Insurance, Agriculture, Energy/Resources Raised to Date: Unknown   2016! Palo Alto, CA • Measure greenhouse gas emissions from industrial sources around the world such as oil wells, gas plants, thermal power stations, coal mines and landfills! • Estimate site-specific emissions rates from targeted industrial facilities! • 1 satellite in orbit in 2016! Markets: Environmental Earth Observation Raised to Date: $2.30M  Investors: Sustainable Development Technology Canada (2013)   2011! Montréal, Canada Ground and Space Communications “The system operates similar to a cellular carrier network making communications as easy as owning a mobile phone or logging into an in- flight WiFi system.” Jason Andrews! CEO of Spaceflight Networks = OSV has direct C-level ! contact with the startup

34.   34 Smallsats Trends Mirror   The Evolution of Computing Devices Fragmentation of EO Data, Products and Services! • Technology improvements, reliance on COTS technology, and freely accessible EO data have all contributed to increasingly specialized functions within the commercial EO sector. The entity that launches, operates, and collects satellite imagery may be different from the entity that analyzes the data, which may be different from the entity that stores the information and processing power. ! ! • EO is likely the first of the space sub-sectors to become as modularized and fragmented. As the value chain of EO become increasingly specialized, companies are likely to continue to specialize in specific areas. This trend is similar to structural changes that have occurred in other sectors, like semiconductors. Outlook! EO ! Startups The Fragmentation and Modularization of the EO Value Chain Instrument Development! (e.g. Ball Aerospace) Platform Development! (e.g. Surrey Satellite) Satellite Operations and Data Collection! (e.g. Planet) Software Development! (e.g. Esri) Data Processing! (e.g. Google Earth) Data Storage! (e.g. Amazon) Data Analysis (e.g. Amazon) Data Visualization, Reports and Services to Customers (e.g. The Weather Channel) Mainframe Mini Computing Client / Server Desktop Internet Cloud & Mobile Connected Products 2010’s —! ! ! ! ! 1990’s —! ! ! ! ! 1970’s — — 2000’s! ! ! ! ! — 1980’s! ! ! ! ! — 1960’s Multi-Device! Computing! (manydevices for1user)! ! Mass! Market! (1devicefor 1 user) ! ! Institutional Computing  (1devicefor manyusers) Similarly to the transition from large, expensive mainframe supercomputer capability to the distribution of smaller, more standardized microcomputer systems with more processing power, smallsats may enable the space sector to follow the same evolution pattern. Source: Kamp, 2013 Source: Institute for Defense Analyses, 2015

35. ! 35 New Cost-Conscious ! ! Approaches To Launching! Global competition in the launch sector is intensifying in a subset of countries with the necessary infrastructure. Some newer entrants offer different characteristics in their launch services, like India not only providing lower cost launches than traditional launch providers but also minimizing other hurdles (such as requirements related to intellectual property). Together, these developments will likely create a more commoditized and international launch service for all but the most sophisticated payloads.! Southern California: An Operational Spaceport! Virgin Galactic is testing its air-launched small satellite launch vehicle, LauncherOne, and has signed a massive contract with OneWeb for 39 launches. Payload performance: 400 kg, price point < $10 million.    RocketLab is developing 16-meter light-weight rockets. Payload: 150 kg. Price point: $70k (1U CubeSat) to $210k (3U CubeSat).    Firefly, in Texas, will be capable of lifting 400kg to 400 km. Funding: $22M in 5 Rounds.    Vulcan Aerospace (Paul Allen’s firm) is building Stratolaunch, a plane that will have the largest wingspan ever and is to launch on a weekly basis.     XCOR Aerospace Inc. and micro-satellite launch firm Vector Space Systems have established facilities for rocket test firings (expected capacity: 50 kg payload). Launch Vehicles Jim Cantrell! CEO, Space Vector Systems “There’s probably more rocket engine and launch vehicle expertise in Southern California than anywhere else in the United States or probably the world.” Ticket to Space

36.   36 Institute for Defense Analyses. Science and Technology Policy Institute. Bhavya Lal, E. J.-G. (2015, October). Global Trends in Civil and Commercial Space (Presentation). Washington, DC.! ! Euroconsult. (2016). Prospects for the Small Satellite Market. Montreal. ! Gogo international ku-band satellite internet. (n.d.). Retrieved from http://concourse.gogoair.com/ technology/gogo-international-ku-band-satellite- internet-work ! ITU, I. T. (2016). ICT Facts & Figures 2016. ITU. ! Kamp, L. (2013). Mobility Trends. Barcelona: Accenture. ! Northern Sky Research. (2015). Satellite Manufacturing and Launch Services, 5th Edition. ! ! Satellite Industry Association. (2015). State of the Satellite Industry Report. ! Summerer, L. (2012). Evaluating research for disruptive innovation in the space sector. Acta Astronautica, Volume 81, Issue 2 , 484–498. ! Yeh, J. a. (2014). Price Per Pound: A Poor Predictor for Future Growth in the Commercial Satellite and Launch Industries. Moore’s Law, Cots, and Future Industry Drivers. Toronto, Canada: 65th International Astronautical Congress. Bibliography

37. ! 37 Conclusion Better and cheaper technology, especially in the commercial off-the-shelf components (COTS) sector, has led to the development of newer and lower-cost space-based applications, products, and services which, in turn, have accelerated space investment globally and spawned new users and suppliers that a r e f o l l o w i n g d i v e r s e a p p r o a c h e s t o s p a c e development. ! ! This report provides some evidence that the space sector is undergoing a transformation and that structural changes underway pertain to:! • Globalization and the integration of space value chains and markets! • Commoditization – of satellites and launches! • Competition and a growing consumer power across the landscape! • The bifurcation towards a Satellite-as-a-Service model and the implications for big data! • The unprecedented amount of spending and VC activity in different space sectors! ! The United States will likely remain the principal player for a long time to come, though in a less dominant role than in the past. If the current steepness of growth in the satellite broadband/ telephony sector draws parallels with the Internet bubble of the 1990s, which saw more companies fail than succeed, some of the projects proposed today should nonetheless be attentively considered for the disruptive potential they still represent for telcos.

39. ! Report prepared by Hugo Wagner! Space Technology Analyst   Orange Silicon Valley Questions? New announcements are made almost on a daily basis in the smallsat landscape. Some information in this report could have changed after it was printed. For any updates inquiry or general questions, please contact Hugo Wagner at hugo.wagner@orange.com

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Small Satellites: Landscape and Market - New Constellations - New Uses Cases [August 2016]

Small Satellites: Landscape and Market - New Constellations - New Uses Cases [August 2016]

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