Initiation Report: Relativity Space

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Summary

The increasing demand for large constellation launch services is necessitating a commercially competitive and disruptive launch capacity. California- based Relativity Space is uniquely positioned to capitalize on this demand. Leveraging its vertically integrated technology platform, Relativity is pioneering an inevitable industry shift toward software-defined, 3D manufacturing of rockets, which is poised to create a sustainable competitive advantage. The firm’s value proposition has already won significant market validation with nine customers already signed for its Terran R vehicle, totaling an order book of more than $1.8 billion. Additionally, it has established long-term agreements with respected industry players such as NASA, OneWeb, Intelsat, and Impulse Space, further bolstering its credibility and potential for sustained growth.

Methodology

Our views on Relativity Space are derived from our rigorous research process, involving proprietary channel checks with users, competitors, and industry experts, and synthesizing publicly available information from the company and other reliable sources.

Key Points

Large and Growing Addressable Market - The space launch services market is projected to reach $29.6 billion by 2027 at a CAGR of 15.1% from 2023 to 2027, per MarketsandMarkets. This uptick suggests an increasing commercial and governmental appetite for space-based services and technologies.

Strong Pre-Launch Sales Validate Market Demand – An order book of

$1.8 billion for the Terran R launch vehicle – the highest ever for any launch company – is a compelling indication of long-term revenue stability and market demand. This financial runway can fuel future innovations and scale, while the diversified client base offers an added layer of risk mitigation.

Vertically Integrated Technology Platform – Relativity Space distinguished itself with its vertical integration strategy that enables tight control over its value chain. The company’s technology platform combines 3D printing, artificial intelligence, and autonomous robotics for an unprecedented pace and scale. Through substantial investments in technology and physical capital, the firm accelerates innovation and minimizes costs.

Technological Leadership in 3D Rocket Manufacturing: With its patent- protected manufacturing process, Relativity Space is the first company to 3D print almost an entire rocket. The technology substantially disrupts traditional timelines and the economics of rocket production by bringing down the rocket-built time to 2 months (92% lower than industry standards) and iteration time to 6 months (88% lower than the industry standards). This agility enables swift adaptation to market demands setting Relativity Space ahead of competitors.

Synergistic Partnerships Boost Credibility and Expand Opportunities – Long-term agreements with organizations such as NASA and Impulse Space not only bring credibility but also open doors to collaborative opportunities that could expand the company’s footprint. With its recent lease agreement on vertical test at NASA’s Stennis Sp      elativity now has the largest

commercial presence at the center.

Lack of Operational Track Record – Relativity Space has yet to successfully deliver a payload into space and another launch failure can make clients lose trust. While the recent test launch of the Terran 1 vehicle proved the structural viability of 3D-printed rockets, it failed to reach orbit.

Valuation – Relativity space was last valued at $4.2 billion in the last Series E round when it raised $700 million. St    estor interest

has made Relativity Space the second most highly valued private space tech company, surpassed only by SpaceX.

Company Summary

Relativity Space, a California-based aerospace startup, specializes in the design, development, and fabrication of 3D printed rockets. Established in 2015, Relativity Space is pioneering the use of 3D printing technology to disrupt the traditional rocket manufacturing industry. The company’s approach to rocketry is transformative, utilizing additive manufacturing to revolutionize everything from design to flight. Relativity is able to dramatically reduce the number of parts required for a rocket from the conventional 100,000 to approximately 1,000. This not only minimizes potential points of failure but also significantly shortens the production timeline, with Relativity boasting the capability to print and assemble a rocket in under 60 days, compared to the 18 months typically required for traditional rockets.

With cutting-edge technology and strategic partnerships, Relativity is facilitating a transformation in the space launch industry while catering to the increasing demand for large constellation launch services with a commercially competitive edge. With its medium-to- heavy payload launch vehicle Terran R, Relativity is aiming to significantly exceed the Falcon 9 payload to LEO, with a target payload mass of approximately 33.5 tonnes (73,900 lb) in fully expanded mode. Terran R already has a substantial backlog of contracts – totaling $1.8 billion – demonstrating significant market validation and confidence in the company’s approach.

Moreover, NASA has selected Relativity Space as one of twelve providers for the agency’s Venture-Class Acquisition of Dedicated and Rideshare (VADR) missions, with potential contracts worth up to $300 million, to enhance the U.S. commercial launch market and support varied payload missions. Adding to its portfolio, Relativity has struck an agreement with Spaceflight for a series of smallsat rideshare launches. This partnership highlights the company’s flexibility and respon            market needs, emphasizing its capability to handle not only large constellations but also smaller, dedicated payloads.

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Key Investment Positives

Large and Growing Addressable Market

Relativity Space is well positioned within a market that is not only expanding rapidly but also diversifying in its scope and applications. The growth in the space launch services market is driven by several factors, including the increasing number of satellites launches for communication, earth observation, and research purposes. The total payloads launched by the US per year have from 27 in 2011 to 1,721 in 2021 at a CAGR of 52%, per Aerospace Security. There’s also a growing demand for launch services for interplanetary missions and space exploration initiatives, both from governmental and private entities. This creates a vast addressable market for Rel      Space, whose technological innovations in 3D printing can offer competitive advantages in speed, cost, and flexibility of launches.

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In addition to advancements in satellite technology and an increasing demand for bandwidth, the rising importance of satellite constellations is likely to drive the space market in the coming years. Deloitte’s survey identifies three critical segments—satellite integration, components, and launch vehicles—as the primary growth engines within the space value chain over the next three years. Satellite constellations, transcending the capabilities of isolated satellites, promise ubiquitous coverage. This shift towards comprehensive coverage will necessitate launch service providers to escalate their production and launch cadence to meet the spiraling demand. To keep up, companies that launch satellites will need to product frequently. With its additive manufacturing capabilities, Relativity Space is best positioned to fill in the demand.

In addition, Relativity Space is well-positioned to capitalize on the expanding global reusable launch vehicle market, projected to reach from $1.94 billion in 2023 to $5.41 billion by 2030, growing at 16% CAGR, per Fortune Business Insights. This growth trajectory highlights a significant shift towards cost-efficient and sustainable launch solutions, directly benefitting Relativity Space whose innovative manufacturing approach not only aligns with these market demands but also offers competitive lead times and scalability. As companies and governments increasingly prioritize reusability to drive down costs and increase launch fre     tivity Space’s technological edge could afford it a considerable market share, bolstering its valuation and investment appeal.

Strong Pre-Launch Sales Validate Market Demand

3D Printing Leadership and Vertically Integrated Technology Platform Offers Edge

In addition, Relativity Space is well-positioned to capitalize on the expanding global reusable launch vehicle market, projected to reach from $1.94 billion in 2023 to $5.41 billion by 2030, growing at 16% CAGR, per Fortune Business Insights. This growth trajectory highlights a significant shift towards cost-efficient and sustainable launch solutions, directly benefitting Relativity Space whose innovative manufacturing approach not only aligns with these market demands but also offers competitive lead times and scalability. As companies and governments increasingly prioritize reusability to drive down costs and increase launch frequency, Relativity Space’s technological edge could afford it a considerable market share, bolstering its valuation and investment appeal.

The unprecedented pre-launch sales figures for the Terran R launch vehicle signify a robust market appetite and investor confidence. An order book surpassing $1.8 billion with clients such as OneWeb, NASA, US Space Force, Impulse Space and Intelsat is a testament to the vehicle’s potential to revolutionize space commerce. This financial commitment by customers offers a clear vote of trust in the vehicle’s capabilities and represents a significant de-risking of the business model, providing both the capital and the customer validation to expand operations. It also secures the company’s ability to pursue aggressive research and development, ensuring that innovation remains at the forefront of its growth strategy.

Moreover, the variety of clients in the order book—from government agencies to commercial entities and scientific institutions—reflects a broad-based demand, highlighting the launch vehicle’s versatility and adaptability across different markets. This client diversification also serves as a strategic hedge against sector-specific downturns, enhancing the company’s resilience to market volatility.

Relativity Space, with its pioneering Stargate 4th Generation metal 3D printers, stands at the forefront of the aerospace sector’s additive manufacturing revolution. This innovation goes beyond their own Terran R rocket production; it positions Relativity as an indispensable manufacturing ally for emerging rocket launch enterprises.

The capabilities of the Stargate printers to produce large-scale, complex structures rapidly and with far fewer parts is a game-changer. By leveraging customized software and advanced machine learning techniques, these printers achieve unprecedented speeds and reliability in printing metal products, drastically simplifying the supply chain. Such efficiency and scalability are not just beneficial for Relativity’s ventures but are also a vital resource for start-up companies looking to break into the market without the burden of traditional manufacturing constraints.

In an industry where innovation cycles are traditionally long, Relativity’s Stargate technology disrupts the status quo by reducing development time from years to months. This rapid iteration capability is essential for start-ups that must quickly evolve to stay competitive and meet the fast-paced demands of the aerospace, aviation, energy, and defense sectors—each a part of the trillion-dollar industry.

Relativity’s vision, articulated by CEO Tim Ellis, sees large-scale, flight-designed products being inevitably produced through 3D printing. This vision is backed by the tangible progress in their manufacturing processes, which promise not only to enhance performance but also to deliver cost-effectiveness with each iteration. Such technological prowess and commitment to innovation make Relativity Space an ideal manufacturing partner for rocket launch start-ups, offering them a fast track to market entry and a competitive edge in the new space race.

3D printing will also likely allow Relativity Space to launch payload to LEO at competitive pricing. Terran R is expected to cost $55 million, compared to SpaceX’s standard price of $62m. Moreover, 3D printing offers Relativity the flexibility to optimize designs quickly in response to specific mission needs, a capability that traditional manufacturing methods cannot match in terms of speed or cost. As Relativity refines its 3D printing techniques and scales operations, the cost efficiencies are projected to become even more pronounced.

By integrating 3D printing, AI, and autonomous robotics, the company doesn’t just streamline its own production—it sets a new precedent for manufacturing efficiency and flexibility that can be leveraged by potential partners. The reduction in complexity and components through 3D printing not only refines Relativity’s rocket production but also offers a modular and adaptable manufacturing solution to partners. This positions Relativity to serve as a critical link in the supply chain of aerospace companies and government space agencies seeking advanced manufacturing capabilities.

The potential for cross-industry partnership extends to any sector requiring high-grade, precision-engineered components. Relativity’s manufacturing platform could serve the needs of the automotive, defense, and aviation industries, providing a gateway these sectors to benefit from advanced manufacturing techniques without the overhead of developing such capabilities in-house.

Synergistic Partnerships Boost Credibility and Expand Opportunities

Long-term agreements with organizations such as NASA and Impulse Space not only bring credibility but also open doors to collaborative opportunities that could expand the company’s footprint. Relativity Space’s strategic alliances underscore its robust business model and growing industry clout.

In January 2022, Relativity Space was selected by NASA for VADR missions. This selection enables Relativity to bid on contracts for launching NASA’s innovative and experimental payloads, an endorsement of the company’s agility and responsiveness to the evolving needs of space missions.

Adding to its portfolio of high-caliber agreements, June 2022 marked the commencement of a comprehensive launch services agreement with OneWeb. This multi-year, multi-launch contract places Relativity Space in a pivotal role to facilitate the expansion of OneWeb’s satellite constellation, aimed at providing global broadband connectivity. The scope and financials of this deal, while undisclosed, can be projected to contribute significantly to Relativity’s revenue stream and solidify its presence in the commercial satellite launch market.

The partnership forged with Impulse Space in July 2020 is particularly noteworthy. This exclusive agreement positions Relativity Space as the launch provider for Impulse’s Mars Cruise Vehicle and Mars Lander. Scheduled to be launched aboard the Terran R from Cape Canaveral, FL, the significance of this partnership extends beyond its 2029 horizon. It not only reflects Relativity’s competitive capabilities in interplanetary missions but also potentially positions the company at the forefront of Mars exploration logistics.

Each partnership brings with it a confluence of technological validation, market access, and financial fortitude, propelling Relativity Space into a trajectory of sustained growth and innovation. As these alliances translate into operational success, they will likely bolster the company’s market share, enhance its technological footprint, and expand its influence across the industry spectrum, from LEO to the far reaches of the Martian surface.

Key Investment Concerns

Lack of operational track record

Like any aerospace enterprise, the rocket industry carries inherent risks tied to unforeseen anomalies that may result in the loss of valuable client payloads. A single launch failure, especially in the early stages, could set off a detrimental chain reaction, jeopardizing contractual agreements and eroding client trust, thus imperiling the viability of the company’s operations. Relativity Space has already committed to launch contracts for its untested Terran R rocket, which raises questions about its ability to withstand interplanetary mission remain reusable following each launch, adding an element of uncertainty that could undermine the company’s contract fulfillment.

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Kessler Syndrome – A Threat to Space Explorations

A significant concern in the realm of space operations is the Kessler Syndrome, a scenario in which a single space collision triggers a chain reaction of subsequent collisions, posing a grave threat to space transportation. As of December 2020, there were 2,700 operational satellites coexisting within Earth’s orbit alongside a staggering 8,800 metric tonnes of space debris hurtling through this vacuum at high velocities, devoid of any atmospheric drag. While the expanse of space itself is immense, the finite capacity of Earth’s orbit necessitates a disciplined approach to space debris management, as uncontrolled debris poses a formidable risk to the integrity of the entire space economy.

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Space is Tough Market to Crack

Incorporated in 2002, SpaceX achieved a significant milestone in 2008 when, following two years of initial rocket launch setbacks, it accomplished the remarkable feat of becoming the inaugural privately-financed company to successfully deploy a liquid-propelled rocket. Subsequently, SpaceX pioneered the development of the groundbreaking Falcon 9, the world’s premier reusable rocket, facilitating missions ranging from satellite deployment to resupplying the International Space Station, including manned astronaut journeys aboard the Dragon capsule. SpaceX further revolutionized the industry by introducing the Falcon Heavy, recognized for its unmatched capabilities and unparalleled cost-efficiency at an astonishing rate of $1.4K per kilogram launched.

Pushing the boundaries of innovation, SpaceX embarked on its most ambitious venture to date, the Starship project, which aspires to realize a fully reusable rocket optimized for lunar and Martian missions. As of September 2023, SpaceX has impressively secured a substantial $9.8 billion in funding, underscoring its position as a dominant force in the aerospace industry.

Blue Origin, founded in September 2000 by Jeff Bezos, is dedicated to advancing space accessibility through the development of reusable rockets, promising cost-efficient space exploration missions. Leading its endeavors is the New Shepard, Blue Origin’s inaugural and sole operational reusable rocket, primarily engaged in suborbital spaceflights, boasting an impressive record of 22 successful missions. Blue Origin extends an opportunity for individuals to secure a seat aboard the New Shepard for $200,000. Expanding its portfolio, the company is actively working on two additional products: the New Glenn, a formidable orbital spaceflight rocket, and Blue Moon, a lunar lander tailored for transporting payloads and crew to the moon. Anticipated to launch by late 2024, the New Glenn will accommodate both crewed and uncrewed missions, while the lunar lander is poised for a pivotal test mission to the moon in 2024.

Industry Overview

The space industry is evolving, driven by a surging need for commercial satellite deployments, space exploration endeavors, satellite networks, and satellite and space station maintenance. McKinsey forecasts a substantial expansion, projecting the global space market to surge from approximately $447 billion in 2022 to an estimated $1 trillion by 2030, accompanied by a tripling of active satellites by 2033. The decreasing launch costs coupled with soaring demand from corporate and governmental entities are poised to generate supply bottlenecks within the launch market for the remainder of this decade.

Furthermore, the commercialization of LEO over the last decade has catalyzed the proliferation of numerous space startups. In an era where both private and public sectors seek unwavering, cost-efficient, and dependable launch solutions, 3D-printed rockets present a compelling choice. The conventional rocket manufacturing method, which has been labor-intensive for more than six decades, stands in stark contrast to the 3D-printed rockets, which provide a more fuel-efficient, lightweight, and expedited alternative.

Satellite Connectivity in Smartphones to Propel Launch Vehicle Market Growth: Apple has unveiled satellite-enabled roadside assistance as a key feature of the latest iPhone 15, expanding upon the satellite-based emergency SOS functionality introduced in the iPhone 14 and recent Apple Watch models. In a parallel development, Huawei’s flagship Mate 60 Pro now offers satellite calling capabilities. Additionally, Samsung has also entered the satellite communication arena by introducing its 5G non-terrestrial networks modem, enabling smartphones to establish communication with satellites. Furthermore, Qualcomm has introduced its satellite communication technology, known as Snapdragon Satellite, compatible with Android smartphones equipped with the X70 modem.

The imminent revolution in smartphones appears to be transcending terrestrial boundaries, as a burgeoning array of options for satellite communication garners significant attention. Currently, Apple is utilizing the infrastructure of Globalstar, a prominent US satellite communication enterprise boasting a constellation of 24 Low Earth Orbit (LEO) satellites while Qualcomm, poised to dominate the Android ecosystem, is harnessing the capabilities of the Iridium, a global satellite communications company.

This ongoing transition is currently limited to premium-tier smartphones but will move to lower-tier models, following the trend of most smartphone innovations in the past. The escalating demand for satellite connectivity within smartphones could prompt both existing cellular network providers and mobile device manufacturers to consider venturing into LEO satellite ownership. This, in turn, will fuel the demand for services offered by companies facilitating satellite launches.

Decreasing Launch Costs Coupled with Soaring Demand are Poised to Generate Business Opportunities: The commercial landscape of space is experiencing remarkable growth. This surge encompasses a spectrum of ventures, ranging from suborbital excursions for space tourists, scientific research conducted in microgravity, to the establishment of expansive satellite mega-constellations that transmit high-speed internet to consumers. The upsurge of activities has been primarily propelled by the substantial reduction in space launch expenses, the increased accessibility of more affordable satellite components, and the ascendancy of private space enterprises. Consequently, this transformation has substantially broadened the scope of space exploration, providing unprecedented access to the cosmos. This, in turn, is expected to catalyze the development of a trillion-dollar commercial space sector. Companies that were once burdened with exorbitant satellite deployment costs can now achieve the same objectives at a fraction of the previous expenditure. Reduced costs and the proliferation of small-scale satellites have democratized space exploration, enabling startups and academic institutions to undertake space projects with relatively modest budgets. To illustrate, SpaceX charges approximately $1,200 per pound for delivering payloads from Earth to Low Earth Orbit (LEO), whereas NASA’s retired space shuttles, which last flew in 2011, incurred a staggering cost of nearly $30,000 per pound for the same service. These cost reductions have generated heightened interest in space payload transportation, creating substantial business prospects for startups such as Relativity Space.

The Escalating Requirement for Earth Observation Satellites to Address Climate Change: The critical significance of Earth Observation Satellites (EOS) has become increasingly apparent in recent times. In late December 2019, the internet was inundated with high-resolution satellite images capturing the devastating Australian bushfires, followed by a similar outpouring of images during the Amazon Forest fires in August of the same year. These poignant visuals resonated globally, prompting a unified call to action. The source of these compelling images lay in various constellations of EOS, including the Himawari-8 satellite from JAXA, NASA’s Suomi-NPP satellite, and the ESA’s Sentinel-2 satellite. While these images resonated with the general populace, the treasure trove of climate data collected by these satellites, encompassing heat emissions, air temperatures, moisture levels, and wind patterns, provided invaluable insights to the scientific community. This data empowered scientists to not only comprehend the immediate and future implications of these environmental disasters but also to devise meticulous response strategies. Furthermore, over the past fifteen years, EOS data has furnished scientists with an unparalleled vantage point from space, exponentially augmenting our understanding of Earth’s rapidly evolving climate and its cascading impacts on both global and local scales. Such developments will create lucrative opportunities satellite launch vehicles and launch services startups over the coming years.

Mounting Need for Satellite Internet to Push Launch Vehicle Market Growth: Satellite internet, also known as satellite broadband, constitutes a wireless connectivity solution facilitated by an intricate network of communication satellites encircling the Earth. This technology transcends geographical constraints, enabling ubiquitous accessibility within the expansive reach of global satellite coverage. It has swiftly evolved into a pivotal alternative for telecommunications and broadband services, particularly in remote and underserved regions, where conventional internet avenues like DSL and cable infrastructure encounter formidable obstacles. Consequently, satellite internet is progressively garnering global recognition, prompting major players in the internet industry to venture into this domain, striving to deliver swifter network speeds. Approximately 63% of the world’s population currently enjoys internet access, per The United Nations, signifying an ample opportunity to tap into this sphere and extend connectivity to the remaining global population. The growing need for satellite internet could pr                  s and launch services creating immense revenue opportunities for startups such as Relativity Space.

Race for Global LEO Dominance to Benefit US-based Launch Vehicle and Services Providers: The Low Earth Orbit domain is experiencing a notable surge in activity, with China emerging as a strong contender to challenge the US’ LEO dominance. The United States Department of Defense has explicitly outlined its defense strategy, identifying China as its pacing challenge and the most consequential strategic competitor. China is presently executing an expansive space program, displaying considerable growth in both space and counterspace initiatives, posing diplomatic, economic, and military challenges for the US. Chinese President Xi Jinping has articulated an ambitious “space dream” with the goal of establishing China at the leadership position by 2049. The United States, long a dominant force in space technology and market share, is witnessing an erosion of its advantages, with China rapidly advancing in its space capabilities. A report from the US Defense Intelligence Agency (DIA) reveals that China nearly doubled its satellite count from 250 to 499 between 2019 and 2021. In terms of funding for space startups, China has outpaced all but the United States, attracting 16% of the global investment in such ventures. However, the US Government allocated nearly $62 billion for its space programs in 2022, maintaining its position as the world’s top spender in space endeavors. China is a distant second, with government expenditures of nearly $12 billion on space programs. With the US acknowledging China as the most consequential strategic competitor, US-based satellite launch vehicle manufacturers and launch service providers stand to benefit from heightened government support for domestic initiatives.

Military Applications to Create New Business Opportunities in the Launch Services Market: The military has a storied history intertwined with space exploration, as contemporary rockets trace their lineage back to developments during World War II. Presently, armed forces worldwide heavily depend on space-based assets for a spectrum of critical functions, including reconnaissance, meteorological tracking, communication, navigation, and more. The United States Air Force consistently conducts launches for GPS and missile-defense tracking satellites. In alignment with this, the Space Development Agency (SDA), an organization within the US Space Force formed to expedite the integration of commercial space technologies into military systems, embarked on a significant milestone in 2023. Collaborating with SpaceX, they launched 10 satellites for the inaugural military communications and missile tracking satellite constellation. This operation marked the first of two dedicated launches, following a $150 million contract awarded to SpaceX in December 2020 by SDA for 28 satellites. SDA’s visionary strategy entails constructing an extensive network comprising hundreds of interconnected satellites, an approach called “proliferated architecture.” This hinges on the deployment of cost-effective satellites in substantial quantities to furnish defense-related services. Such initiatives are poise               und for burgeoning enterprises like Relativity Space, opening doors to fresh business opportunities in the sector.

Revenue Model and Implied Valuation

For Relativity Space’s revenue estimation, we looked at the unit metrics of SpaceX, a leader in spacecraft manufacturing, that launched 61 rockets in 2022. The company charges $275,000 for 50kg to sun-synchronous orbit (altitude of 600-800 km) with additional mass at $5,500/kg. Considering SpaceX’s huge head start over Relativity Space while also considering the significantly lower rocket build time of Relativity Space, it is reasonable to assume that Relativity Space will be able to launch ~10% of SpaceX’s 2022 capacity by 2027.

Based on our top-down revenue model, the company is well positioned to generate material revenues given its efficient rocket manufacturing technology. With the rapidly expanding demand for satellite launch vehicles and launch services, we expect Relativity Space to achieve significant commercialization scale-up from 2027 onwards. We expect Relativity Space to capture a 4-5% share of the satellite launch vehicle market as well as satellite launch services market by 2030. Given these assumptions and projection estimate that Relativity Space’s revenue will experience substantial growth in the coming years, estimates for which are as follows:

Funding Rounds & Private Valuations

Relativity Space has secured $1,385.1 million in funding across five funding rounds. Relativity Space’s approach of building 3D printed reusable rockets has resonated with investors, leading to significant investor interest since 2019. Notably, the company raised $140 mil- lion in 2019, followed by $500 million in 2021. The company’s ability to attract investment has continued to grow, with its latest funding round – a $700 million Series E in 2021 by Fidelity Investments as lead investors with participation from various other investors. The latest funding round valued the company at $4.2 billion, a 83% markup from its valuation of $2.3 billion post-series D in November 2020

Comparative Public Multiples

The following table shows the multiples of public companies operating in spacecraft manufacturing and launches. While evaluating the company’s implied valuation using public multiples might seem tempting, it falls short of painting a comprehensive picture of Relativity Space’s potential. Nonetheless, the public multiples do provide a useful reference point for the company’s future valuation. Given Relativity Space’s disruptive techno                rockets, it is reasonable to expect the company to command a premium over its public peer multiples.

Disclaimer

I, Santosh Rao, Head of Research, certify that the views expressed in this report accurately reflect my personal views about the subject, securities, instruments, or issuers, and that no part of my compensation was, is, or will be directly or indirectly related to the specific views or recommendations contained herein.

Manhattan Venture Research is a wholly-owned subsidiary of Manhattan Venture Holdings LLC (“MVP”). MVP may currently and/or seek to do business with companies covered in its research report. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. This document does not contain all the information needed to make an investment decision, including but not limited to, the risks and costs.

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