Challenges and Opportunities in Space Financing for Emerging Entrepreneurs
- Paper number
IAC-08.E6.2.5
- Author
Prof. Walter Peeters, International Space University (ISU), France
- Coauthor
Dr. Vasilis Zervos, International Space University (ISU), France
- Year
2008
- Abstract
The successful dialogue between the young space entrepreneur and the space investor remains difficult. This is particularly true with regards to the market-stakeholders of the financing world, namely the Business Angels and Venture Capitalists. With the support of the European Commission (Innova initiative) research was undertaken so as to assess this problem and potentially develop suitable facilitating solutions. Using a unique and tailored database of space and hi-tech investors key elements of financing problems for start-up entrepreneurs were analysed. Questionnaires tried to find answers in various fields, such as availability of funding, perceived problems with business plans, knowledge of young entrepreneurs in financial techniques and terminology as well as, protection of Intellectual Property Rights. The analysed results were supported by interviews and validated by expert panels. What emerged was a consensus that the space community is unique, but so are the other areas seeking funding from the same ‘pool’ of commercially-minded funds, so no specialised ‘space-assisting’ tools are required for small-medium size enterprises and start-up entrepreneurs. Instead what seem needed are better communication and a common language between space engineers and scientists and the financial community. This point to a number of alternatives related to education and training, as well as understanding in a multi-disciplinary framework. Significant, but unexpected findings are also presented in this paper, such as the dilemma faced by young entrepreneurs between an easy to start-up service-oriented entity and the challenge of a potentially more promising, but difficult to start-up a technologically advanced entity. This is an area of potential concern, as the transition is faced with high friction and substantial costs, resulting in technological break-through entities being at a disadvantage. The paper concludes with policy implications and deliverables in support of commercialising space technologies via developing start-up entrepreneurs through market stakeholders.
- Abstract document
- Manuscript document
IAC-08.E6.2.5.pdf (🔒 authorized access only).
To get the manuscript, please contact IAF Secretariat.