Let's Go to Space!
"My parents told me to push my boundaries to find out what life had to offer me, I don't think they imagined I'd launch a business in space." -Christoper Sanchez
Why Go to Space?
When people find out your in the space business they immediately put you into one of two categories: Jodi Foster in Contact or some type of James Bond Villian type businessman. I'm sure there are other categories they might put me in but I'm trying to keep this short. Space inherently interests most people and discussing it always fun from a philosophical point. What's up there? What would it be like? Can you imagine? But if you say you have a plan to get there, build things there or anything else people will quickly realize that you mean business. Literally.
I've always enjoyed the philosophical idea of space but I enjoy even more the idea that something that I create with my team will be among the stars. Having the opportunity to create a company and participate in one of the most interesting industries of the future makes getting up the easiest it's ever been. But this is just my perspective that get me excited. So you might be asking yourself: why should I care about space or what businesses are going to be doing up there? We'll I'll tell you and there is probably something interesting for everyone (especially since your reading this site.)
I've broken the page down below into four sections.
- For everyday people and consumers.
- For Governments
- For Entrepreneurs
- For Investors
Each group will play a critical role in the development of the space industry and the overall space economy. I've written some key thoughts on what each of these groups might consider when thinking about space and it's importance. Yes you can cross apply and take from other sections if you're not an investor, entrepreneur etc., these are just suggestions to help point you in a direction that might make space relevant to you.
If you're an entrepreneur, investor or government looking to get involved with the space economy feel free to contact me to get more detailed information on the opportunities in space. I'd like to connect with and understand what you specific goals or interests are.
Every Global Citizen and Consumer
As a citizen and consumer on this planet you the innovations and growth of the space economy will change and improve many of the things you do every day. Cars, cell phones and other technology devices are directly or indirectly connected with space already and a prime example is GPS and communications. Your ability to communicate uninterruptedly around the globe will depend more on satellites than on ground based services. Companies like OneWeb are launching thousands of satellites to bring global internet connectivity to every part of the world. This will increase the size of the global economy and the opportunities for more people to interact and trade with people from around the globe.
Space is also the place your grand kids or great grand kids might end up living. It might sound strange and a bit far fetched but there is a solid chance (in my opinion) that the human race will become a multi-plant race in the next 100 years. It's also likely that the first people who leave earth to establish colonies on other planets (Mars would be first) will be ideally placed to make the next fortunes in space after the original tech companies of the New Space industry.
Governments and Nation States
Governments around the globe need to consider quickly their position in regards to space.
Core Space Considerations for Governments
- Participation in existing treaties and regulations
- Domestic Space Resources (Space Ports, Infrastructure, Economic Incentives)
- Domestic Regulatory & Fiscal Impacts on Relative and Absolute Basis
Core Space Opportunities for Governments
- Augment the domestic/national GDP thru participation in the Space Economy
- Improved Tax Revenues thru domestic space companies activities
- Improved abilities to expand their foot print into space either on their own of thru participating with other countries.
In my opinion, governments have nothing but upside when it comes to participating in the space industry and economy. The opportunities to grow domestic GDP, improve and expand domestic industries.
Entrepreneurs with a taste for the adventurous, have a deep interest in space and enjoying being at the forefront of new industries have never had a better opportunity to enter a new industry since 1994 when Netscape was founded and kicked off the internet revolution. New Space companies are paving the way for new technologies, services, products and innovations to be used in space. Entrepreneurs with the vision to bring companies to market in the space industry have the same opportunity to found some of the first companies that will shape the future of the space economy in the same way Google, Amazon, Netscape and others shaped the future of the digital economy.
What Are Your Risks?
- The risks surrounding the space economy from the entrepreneurial perspective are fairly similar to any other disruptive high tech endeavor
- The amount if money you need to raise could be significantly higher depending on what segment of the space economy you plan to launch your business in
- I think that if you have the vision and idea to make a venture in space your biggest risk is not attempting to do it
Economic and Non-Economic Opportunities & Benefits
- You will have the opportunity to be one of the pioneers developing the space economy in the same way Elon Musk, Jeff Bezos and Richard Branson have already
- You will be able to shape the future of the space economy and the way the human race explores and occupies space
- The first trillionaire will likely come from the space industry. I'm not saying that money should be your motivator, but, it is good know that you are in an industry that is set to grow exponentially in your lifetime
Ultimately, entrepreneurs have an enormous opportunity to launch new companies (literally) into space. This is a once in a generation opportunity to participate in creating the future that anyone able to should not let it pass them by.
Investors (like entrepreneurs) have a real opportunity to fund and create the future of the human race by fueling startups aimed at taking on the space challenge in the coming years. But before you (deal investor) roll you eyes and say that the risks are too high, the technologies are questionable profitable, the business might not make sense yet, etc., let me put a quick bullet point of what you should think about.
First the Risks
- New market that will need time grow
- The technologies can seem before their time
- Profitability can range broadly
- Space Property Rights are still being worked out
- Limited recourse on assets in space
Now the Opportunities
- The returns for the risk can range can be upwards of 100x's (assuming early pre-ipo investment in angel, seed, or Series A-Z)
- Access the subsequent technological innovations from innovative companies you've invested in
- The space industry is expected to grow from roughly $300 billion today to over $3 trillion in the coming decades.
- The space industry is expected to create the worlds first trillionaire (and billionaire investors too.)
And the Solutions to Take Advantage
- Create an investment plan that provides you access to private fundraising rounds
- Develop a deeper knowledge of the technologies and economic of space
- Read about the regulations in the United States and Luxembourg regarding Property Rights in Space and other key matters related to exploration, mining and colonization.
If you have any specific questions (which I'm sure you do if you are a serious investor) feel free to contact me. But I think it's clear that the first opportunity in a quarter century to invest in the future is here.