‘Primo Space' has lift-off: First Italian fund to invest in space economy

27 Jul 2020 03:19 PM

Italian fund manager Primomiglio announces the first closing of Primo Space, an early stage venture fund focused on space start-ups. The first closing of Primo Space reached an initial amount of €58 million with contributions of the European Investment Fund (EIB group), CDP Venture Capital SGR through the VenturItaly Fund of Funds, Compagnia di Sanpaolo, Luigi Rossi Luciani S.a.p.a., Banca Sella, in addition to the SGR itself and its key men. The final target size for the fund is set at €80 million. The EIF's €30 million commitment in the fund is part of the Investment Plan for Europe, and is supported by Horizon 2020, the European Commission's Framework Programme for Research and Innovation, and the new InnovFin Space Equity Pilot.

Primo Space will invest in technology spin-offs, start-ups and SMEs, and will work closely with the Italian research and academic world, including the Italian Space Agency, in order to bring the most promising technologies and entrepreneurial teams to the market. The Fund will target companies working in the “upstream” segment - meaning technology that builds space infrastructure, including electronics, robots and satellites - as well as in the “downstream” segment - earth-based applications enabled by space technology, particularly satellite networks, such as communications, cryptography, geolocation and earth observation.

Paolo Gentiloni, European Commissioner for the Economy, yesterday said: "Companies developing innovative technologies for the space sector really are venturing into the unknown. I am particularly pleased that the EU is providing financial backing for this ground-breaking fund, joining forces with the Italian Space Agency, opening the way to new investment and job creation in this fast-growing sector."

EIF Chief Executive, Alain Godard, yesterday said: “Primomiglio's affiliation with the Italian Space Agency, combined with the support of the EIF constitutes a unique collaboration that will give the Fund immediate international exposure. The Fund is the first investment executed under the new InnovFin Equity Space initiative, and will contribute to the creation of a new player dedicated to the aerospace sector, one of the priority focus areas of the European Union. We are very excited to be moving decisively into this space.“

“The launch of Primo Space is a key milestone for us.” added Gianluca Dettori, Chairman of Primomiglio SGR. “It completes a development of two years and enables us to expand the investment spectrum of our firm, bringing on board a new management team focused on venture and technology innovation.”

“We are very pleased to start this journey at a time when it's key to boost economic growth in Italy.” said Matteo Cascinari yesterday. “It's even more interesting to be able to do it in such a strategic sector, which will rapidly grow in the coming decades. We want contribute to strengthening the Italian New Space Economy.”

"The Space Economy is a sector of primary importance in Italy, with a turnaround of 2 billion Euros and with over 7,000 employees throughout the supply chain. Until now a specialized venture capital fund was missing and Primo Space Fund represents an important opportunity to support technological innovation in our country ", yesterday commented Enrico Resmini, CEO and DG of CDP Venture Capital SGR SpA – National Innovation Fund.

"Our Foundation, acknowledging the strategic value of this sector, has made available its patient capitals for the closing of Primo Space, which represents a very important signal at an industrial level and gives an impulse to accelerate recovery in this delicate phase of recession", yesterday declared Francesco Profumo, President of the Compagnia di San Paolo, who recalls that "every Euro spent in this sector generates six euros of benefits for the community ".

The President of the Amaldi Foundation, Maria Cristina Falvella, says she is "particularly satisfied with the creation of the Primo Space fund, an ambitious project on which Primomiglio SGR has immediately engaged with enthusiasm, putting in place a team of the highest level to which our Foundation it will be able to make a decisive contribution to meeting investors' expectations and bring a new impetus to the national space ecosystem".

Italy is the second largest contributor to the European Space Agency and one of the top ten nations globally in the space sector, active across all areas of the market from manufacturing to services. Primo Space aims to contribute to making the European industry more competitive, by investing predominantly in Italy, and across Europe, as well as the US and Israel.

The development of new technologies, a market opening to the private sector with companies such as Space-X and Blue Origin, plus a favorable regulatory framework, are redefining the market dynamics creating what is described today as the “New Space Economy”. Satellite miniaturization and new launch technologies – including rocket reuse – are making the space market increasingly accessible to companies that can use this infrastructure for their business.

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