ROOM
75
Astronautics
W
hat is NewSpace? It is perhaps best to
describe what it is not. NewSpace
companies are not multi-billion
multinational companies that have
other commercial interests in addition to space,
nor are they smaller low growth firms focused
exclusively on sovereign nations as clients via
grants and SBIR (Small Business Innovation
Research) awards.
They are typically either companies focused on
commercial elements of space, or they are part of
the supply chain for larger space companies and
are disrupting that supply chain with innovation.
They are characterised by a scrappiness and
mentality which is distinctly associated with
Silicon Valley start-ups and they see existing
business models as broken, inefficient or outdated.
Perhaps the most prominent example of a
newspace company is SpaceX.
Notwithstanding the fact that their business
is primarily, if not exclusively, driven by the US
government, they have approached solving issues
in space from a non-traditional Silicon Valley
startup mind set.
For example, the SpaceX project management
system, is based upon the agile project
management model known as ‘Scrum’ where
tasks are planned week-to-week based upon the
The economics of the space industry are changing. Within so called
‘NewSpace’ not only are new entrants being created almost daily, the
business models and capital sources have proven to be dramatically different
from traditional models built upon large government contracts and defence
related spending. If economics is to be believed, the future of the industry
will be dramatically different from anything the industry has previously
experienced. This will create opportunities for industry participants including
agile and well-led established companies, talented and skilled professionals
as well as investors.
Dylan Taylor
Founding Partner,
Space Angels, USA
There are
hundreds of
new space
startups
addressing
a multitude
of industries
and disrupting
the traditional
space
paradigm
Space economics -
industry trends and
space investing
