NewSpace Finance – Myths vs. Reality
- Paper number
IAC-14,E6,3,x26577
- Author
Mr. Joerg Kreisel, JOERG KREISEL International Consultant (JKIC), Germany
- Year
2014
- Abstract
Space commercialization - apart from space telecommunications – became a topic in the industry from around 1990 based on high expectations associated with microgravity, hypersonics and the hype around the Big LEOs back then. Since the beginning of this millennium numerous entrepreneurial space ventures arose around the globe and more and more new business related to space address non-governmental markets. The NewSpace industry was born. Until today NewSpace is being interpreted in different ways and the scope of businesses in this domain differs significantly, ranging from small to big and from simple to complex, be it in terms of systems and technologies involved, markets targeted of funding needed. Especially finance represents still a major challenge for most of the many NewSpace companies. This paper elaborates on NewSpace finance at various levels. Starting from nomenclatures and classification of related commercial endeavors based on important parameters associated, a closer look is taken at the financing itself. Apparently numerous investors have warmed up with space and some companies succeeded in raising sufficient funds, while most of them still struggle. Rumors suggest that billionaires and millionaires will take space to the next level and by that space mass tourism is around the corner as well as exploration ventures are about taking off. This however, is not the case and the traditional investment industry is far from being enthusiastic about space. The second part of the paper assesses real cases - both NewSpace business creation and investments based on select observations and information gathered from i.e. equity investors and intermediaries, the Space Angels Network (SAN) and related experts as well as from NewSpace companies directly - and eventually draws some conclusions and outlook. Background of the findings presented are experiences made by the author over 27 years experience and involvement space projects and commercialization, venture capital, angel finance, business incubation, education, international partnerships and strategy on global level.
- Abstract document
- Manuscript document
(absent)