Potential Approach Towards Private Sector-Backed Future Space Exploration

Paper number

IAC-05-E3.3.03

Author

Mr. Joerg Kreisel, JOERG KREISEL International Consultant (JKIC), Germany

Year

2005

Abstract

Since the early days of Apollo etc. space activities have been funded to the most extent by public institutions. Only in the nineties a dedicated space finance industry evolved alongside with the big LEO constellations proposed. In parallel commercial space telecommunication business became more visible in the public and on the financial markets. For about one decade now and entrepreneurial space ventures have been developed, many of which were not successful. The landscape of space is changing in light of scarce public space budgets and global changes transforming the economy. In a transition process from science-oriented programs to commercial space business finance and insurance as well as legal and regulatory issues have become crucial. In addition new players from non-space backgrounds have entered the field and are partly changing the business culture or successfully start new projects. However, space projects remain risky and require massive up-front investments, which is a major stumbling block regarding their financial feasibility. This applies particularly for exploration programs, why understanding best practices in the investment industry is mandatory. 

The paper discusses major characteristics of space and space exploration projects vs. requirements for commercial opportunities and associated finance. Focus is on financing, insurance and financial feasibility, taking into account real world issues as partnership aspects, balanced risk-reward ratios as well as appropriate phasing and structuring. Pre-requisites for future missions are determined. Alternative approaches and models are presented to enable for an involvement of the private sector and other new stakeholders.  

Backgrounds of the findings presented are experiences made by the author over almost 20 years involvement in space projects, venture capital and private equity, education and strategy development on global level.

Abstract document

IAC-05-E3.3.03.pdf

Manuscript document

IAC-05-E3.3.03.pdf (🔒 authorized access only).

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