UK Space Startups Say Government Support and Investment is Critical to Sector’s Success 

UK Space Startup Digital Event. Photo: Via Satellite

The United Kingdom has made its space ambitions clear in the past year, as the government released its first national space policy, with plans to invest hundreds of millions of euros in the sector. Leaders at some of the country’s startups applaud those investments, but also point to the challenges that Brexit has caused for their businesses. 

Brexit restrictions have hindered business, Joshua Western, CEO of Space Forge, said Tuesday during a Via Satellite digital program. The company, which is working to enable in-space manufacturing and returnable satellite platforms, was founded in 2018 and was operating before Brexit took effect. 

After the restrictions took effect, Western said there were challenges with parts of the supply chain located in the European Union. 

“We had a key piece of test equipment get stuck at customs, to the point where essentially we could no longer deliver that part of the program in the timeframe the customer was looking for,” Western said. “I have experienced that pain firsthand. It has made some elements of recruitment and relations more difficult, such as seeking export licenses to work with the European Space Agency. It is a pain that we didn’t anticipate when we first started.”

Yet Western said one aspect of leading a business that has improved post-Brexit is recruiting high-skill engineers, and the company uses the visa process well. Space Forge is based in Cardiff, Wales, and employs people from 17 different countries. 

Tony Holt, co-founder, and chief innovation officer of In-Space Missions, said the company experienced some “serious problems” post-Brexit. Ahead of a satellite launch, equipment was stuck in various warehouses in the EU, and the company had trouble sorting through the paperwork to resolve the issue.   

But overall, In-Space Missions increased communication with suppliers, and Holt does not believe dealing with Brexit is more challenging than he expected. 

He is also encouraged by the U.K. government’s focus on the sector. The UK Space Agency, for example, released a corporate plan in July outlining how it will work with and invest in the national space sector to achieve the goals in the national space policy.

“The upside is that there’s a little bit more focus from the UK government and the investment community. There are still opportunities [like] the civil security from space RFI that came out from ESA — there’s a big opportunity in that program for a number of U.K. players,” Holt said. “I think it’s just one of those things in global space to navigate your way through. It’s just another one of those hurdles on the list, it’s just a bit more paperwork.” 

One ongoing issue post-Brexit is the U.K.’s participation in the EU’s Horizon innovation program to tackle climate change and the Copernicus Earth observation program. The EU has not finalized a deal for the U.K. to participate, and the U.K. government recently laid out a “Plan B” for a new R&D program if it is unable to reach a deal. 

Anthony Baker, CEO of thermal sensing startup Satellite Vu, said this could be a large opportunity for U.K. companies if the U.K. reallocates funding to the Copernicus program to local efforts. 

“I think that’s a golden opportunity for local companies so [the government] can choose independently without some overhead and direct it to the most promising companies. I’m looking forward to it if that scenario occurs, that it’s money spent wisely. There are opportunities here and I think we have to grasp them,” Baker said. 

Government investment is crucial for commercial space companies, particularly launchers, said Lee Rosen, COO of Skyrora. The launch company is working to launch the first U.K.-built rocket from Scotland this fall. 

“I don’t know of a successful launch company that doesn’t have great government support,” Rosen said. “Having been at SpaceX for a long time, I can tell you — But for NASA, there would be no SpaceX. But for the European governments, there would be no Ariane. That kind of support from the U.K. government, and their desire to step up through their space strategy and hopefully translating that into investment is really critical.” 

Just as space does not have borders, U.K. space companies need to do the work to cross international borders with their business, Rosen said. 

“When a satellite goes into orbit, it doesn’t have to ask permission to cross a boundary. We as space entrepreneurs have to be the same way. We need to figure out ITAR restrictions and learn how to play in whatever field we’re dealt,” Rosen said. “It definitely makes it more complicated, but hopefully it makes us think a little bit faster on our feet in finding innovative solutions. Space is part of the global economy and we have to be able to cross those borders relatively seamlessly.”

This programming was part of the SATELLITE UK Space Industry Forum, available exclusively to SATELLITE group members. Learn more about digital forums and the membership.