entrepreneurial space companies: lessons learned from those that have survived and thrived:
- Paper number
IAC-08.E6.1.8
- Author
Mr. Scott Tibbitts, Center for Space Entrepreneurship, United States
- Year
2008
- Abstract
Aerospace company creation is the embodiment of "From Imagination to Reality"; an entity and a technology are brought to life through the vision and efforts of entrepreneurs. Space is fertile ground for entrepreneurship, but the unique nature of aerospace means that it is often accomplished within a different paradigm than that familiar to other high-technology industries. The willingness of the customer to fund R and D, the high barriers to entry for competitors and the high engineering-high value content of space products provides fertile ground that has created hundreds of Entrepreneurial Space Companies (ESC’s) that are in many cases driving the innovations that are changing how we explore and utilize space. However; the nature of many of these companies is at first blush not well suited for angel or venture capital investment. As space entrepreneurship comes to the forefront, and as the challenge of connecting investors with viable opportunities manifests, it is important to understand how these companies have formed and succeeded.
The nature of these companies will be discussed within the framework of case histories of three successful ESC’s, and the unique aspects of their formation and growth reviewed. Issues involved in the creation and growth of Starsys Research, the company that Mr. Tibbitts founded and developed into a $20M spacecraft mechanisms company recently acquired by SpaceDev, will be discussed in detail. Particular focus will be placed on the unusual investment situation presented by these companies, and their contrast with traditional venture or angel funded entrepreneurial ventures.
Experience gleaned from the Center for Space Entrepreneurship, a not-for-profit partnership of the University of Colorado and SpaceDev Inc, will provide the basis for discussing unique aspects of the aerospace industry that both support and hinder the formation of ESC’s . Strategies for accelerating the formation and development of the companies will be presented. Although not VC backed, these companies can provide unique and sometimes unfamiliar opportunities for VC or Angel investment in later stages of their growth. These opportunities will be described and discussed.
The information above is a unique perspective on aerospace entrepreneurship that to the author’s knowledge has not been collated, presented or discussed in a public forum. The above paper has not been presented at any previous meetings, and the author’s attendance for the Symposium is assured.
- Abstract document
- Manuscript document
IAC-08.E6.1.8.pdf (🔒 authorized access only).
To get the manuscript, please contact IAF Secretariat.