Whether you call it Space 2.0, NewSpace or just commercial space, the next era of innovation in space business has arrived. According to Chris Quilty, president of Quilty Analytics, two factors are pushing NewSpace to the forefront of investors’ consciousness: government involvement and technology change. “We’re sitting on the bow wave. A lot of companies got funded two to three years ago … Most of these constellations aren’t in orbit, most of the launch vehicles have not yet launched — so rubber hits the road in the next couple of years.”
Mark Boggett, managing director at Seraphim Capital, warned that one of the issues holding back investments is the lack of exits. “Raising Series B and C rounds in Europe is difficult across any sector, and it becomes more acute in space-related markets because of the lack of examples of large exits.”
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John Serafini, CEO at Hawkeye 360, highlighted one alternative: “Rather than going out and raising $75 million to build out a full constellation, my focus for our Series B round is trying to break it up into smaller capital requirements.”
Ryan Lewis, vice president at In-Q-Tel CosmiQ Works, noted: “NewSpace offers new products and services but it also offers cost innovation. But the thing to consider is, what are the long term capital requirements for that company in terms of having to pay for launch?”
The panelists agreed that satellite applications — from weather to insurance — are the most promising area, with governments serving as important early adopters. “The U.S. government is a fantastic springboard for space companies,” Serafini said. VS
