Why Long Term Growth is Inevitable for the Space Industry
It’s not breaking news that space isn’t going anywhere. Nor is our fascination or reliance on space-based technologies. Humans have looked to the stars for over 20,000 years to help them improve their lives here on Earth as ancient cave paintings in France record 7 dots–the Pleiades–to help humans define hunting patterns. Basically, humanity has been looking to the stars since our necks could tilt upwards, and all the mixed messages about the health of the global economy today aren’t going to drastically change our relationship to space.
Not only is the space industry crucial in society’s evolution beyond the climate crisis, but, as it turns out, the brightest and most dedicated problem solvers are continuously drawn to the space industry to contribute their highly sought after skills and experience. Like the gravitational force that keeps us grounded, the space industry has grabbed the attention of the most experienced and visionary investors as well as some of the most brilliant talent from every industry.
In this article, we’ll discuss all of the following:
The talent and investment that the space industry is attracting
The status of space funding and increasing opportunities
The value of earth-based observation
Sustainable and reusable technology
The future of exploration
SUSTAINABILITY AND GROWTH BEGIN WITH RECRUITING THE BEST AND BRIGHTEST
If you’ve been following us, you know how proud we are of our Epsilon3 team. They come from within the space industry as well as from a variety of other industries. We see this same trend with many of our customers as they build their revolutionary missions. As the space industry rapidly expands in the private sector, the most insightful and dedicated problem solvers of our day are jumping at the chance to contribute to astronomical change. What was once a small, government-operated industry, has changed overnight. And talented employees are not the only ones noticing.
Shahin Farshchi at Lux Capital, one of Epsilon3’s lead investors, is passionate about investing in companies that
Aim to solve big problems that approach society just beyond the horizon
Have the ability to tell a great story to get customers, employees, partners, and investors excited
Possess a gravitational force that will punch above its weight to attract more talent, creating a virtuous cycle where talent attracts more investment which attracts more talent and so on.
Entrepreneurial activity in the aerospace industry hasn’t been accessible for much more than a decade, and so when the opportunity arose for Farshchi to invest in Planet back in 2012, he jumped to the front of the line and has been a dedicated space investor ever since. Lux currently has $4 billion assets under management with over $100 million in single companies that continue to out-perform well-known competitors.
When asked why he continues to invest in space companies like Epsilon3, Farshchi didn’t hesitate to share his strategy:
“If they can recruit the best talent who can do the heavy lifting to solve a big problem with an incredibly sticky product, we’re more than happy to support our companies in equally big ways to ensure they become the breakout companies they were meant to be.”
We’re proud to say that we’re able to continue to expand and grow our team with top tier talent out of great companies that have been leaders in eCommerce, online dating sites and apps, and optimizing ads at Twitter and Facebook in addition to our team members who have spent their entire careers immersed in the space industry at innovative organizations like SpaceX and Planet. All of these brilliant humans are voting with their feet and joining the Epsilon3 team in an industry that has quantifiable potential. We couldn’t be more thrilled to have the support of our team and our investors.
And we’re not the only ones experiencing real and long term growth.
SPACE FUNDING CONTINUES TO INCREASE AS INVESTING OPPORTUNITIES PROLIFERATE
Morgan Stanley estimates that the global space industry could generate revenue of more than $1 trillion or more in 2040. That’s real growth from where we are currently at $350 billion. And we’re really seeing this as individual companies are receiving incredible support and funding from venture capital leaders.
We’re thrilled that earlier this past summer, Epsilon3 received our Series A funding of $15 million led by our incredibly supportive and visionary investor, Lux Capital. We’re so proud to be part of a fifth of orbital launches from the United States, and to have helped build up a mix of space startups and established large companies as customers, including Rocket Lab, Virgin Galactic, Sierra Space, and the U.S. Space Force.
Spaced Ventures, the planet’s first public space investment portal, now has 10,000 user investors, and has raised $1 million on their crowdfunding platform. Their goal is to bring 1 million investors to the platform in an altruistic attempt to democratize space.
THE VALUE OF EARTH BASED OBSERVATION
When we invest in the growth of the space industry, we’re investing in the well-being of earth and all its inhabitants–the human and more-than-human world. Technology for space isn’t just for space exploration and communication. Many industries have come to rely on the space industry’s innovative leadership to move their own industries forward.
In addition to impacting satellite communications, GPS, remote sensing,and space access, space industry innovations in space often lead to innovations in the operating room, on the farm, for transportation and travel, and every industry you can name. There isn’t an industry that doesn’t rely on technology developed first for space. In a recent report from NASA, they count 1,600 new technologies each year which transfer into thousands of products, services, and processes each year.
Impulse Space, which recently secured $10 Million in funding from Lux Capital, is a successful space startup “committed to the stewardship of earth and space.” They’re leading the next generation of orbital maneuvering spacecraft by efficiently moving payloads into higher energy orbits as they provide nimble and economical capabilities to access any orbit. This innovative technology will improve mission data production and the ability to relay that data back to earth in an economic way that will help organizations track crucial earth based data about weather, climate, and national security.
Earth-based observation plays a crucial role in helping us understand and more precisely predict natural disasters in order to keep people safe and mitigate damage to communities and economies. The ability to forecast weather, climate, and natural hazards depends significantly on satellite-based observation. Our food and national security depend on these satellites and their data analysis more and more as climate patterns continue to shift drastically.
DEVELOPING SUSTAINABLE & REUSABLE TECHNOLOGY
Commercial missions are heavily investing in reusable rocket technology. Stoke Space is focused 100% on reusability, and we’re proud to be one of their partners as they reimagine and revolutionize routine travel to and from orbit to create a seamlessly connected Earth and Space reality. They’re mission is to help commercial customers access the space economy at low-cost, with a flexible schedule, and get them into orbit as fast as possible all using 100% reusable rockets.
Blue Origin is also seriously pursuing reusability with a rocket that uses fins, drag breaks and a powerful liquid rocket engine to reduce speed down to 8km/h for landing. Their mission is to “build a road to space so our children can build the future.” We’re proud to work with Blue Origin to streamline their procedure execution.
In December 2021, Blue Origin and its partners won a $130 million award from NASA to jump-start the design of their Orbital Reef commercial space station. This space station is meant to take shape during the waning years of the International Space Station. As more and more private commercial ventures enter the frontiers of space, investors from every sector see the value and necessity of a strong space industry.
EXPLORATION IS HUMAN NATURE & KEY TO OUR ONGOING EVOLUTION
The space industry wasn’t just born in the 1950s. It’s thousands of years old, and we, as humans, will continue to explore space to understand how it can improve life here on earth for us. Whether we think humans should be inter-planetary or not, space exploration for many applications will remain a significant and leading sector of our economy.
As humans, we push boundaries, and this is nowhere more obvious than the space industry. We’re beyond thrilled to be part of this growing and thriving industry, and are committed to contributing to the health and well-being of our planet and our communities.
