Exclusive interview with Chad Anderson, Founder, Space Capital on the increasing role of space in unlocking multi-sectoral innovations, and the need to safeguard the final frontier.
“GPS, Geospatial Intelligence, and Satellite Communications are the invisible backbone of the world’s largest industries”.
Excerpts:
From ‘Every company is a software company’, we have moved towards ‘Every company will be a Space company’. How do you view this shift and its impact?
Humanity has been operating in space for decades but only recently it became an investment category.
Given that this entrepreneurial space age is just a little over a decade old, most of the action is still in the private markets, but we are beginning to see some companies listed on public markets where retail investors can participate.
If you think back to the late 1990s, there were a handful of publicly traded technology stocks. Seemingly overnight, “technology” became an investable category to diversify your portfolio. Today, that label has lost its meaning. Every company is a technology company.
Space is in the same position that tech was then. One day, “space” as a label will lose its usefulness as every company begins to rely on space-based technology in some way to deliver value.
Space-based technologies are the building blocks of innovation on Earth. GPS, Geospatial Intelligence, and Satellite Communications are the “invisible backbone” of the world’s largest industries.
Amid these challenging times, one thing remains certain: space-based technologies are playing an increasingly vital role in our economy and will continue to transform the world’s largest industries for decades to come.
The subtitle of your book Space Economy is quite interesting – ‘The Greatest Business Opportunity of Our Time’. Where do you think is the NewSpace economy headed, and how can companies as well as countries reap maximum benefits?
Before SpaceX successfully launched its first customer in 2009, there was very little entrepreneurial and investment activity. Now $298.0B has been invested into 1,832 unique space companies over the past decade.
Space technologies have already delivered massive returns for investors. GPS is a space-based technology that has generated trillions of dollars in economic value, as well as some of the largest venture outcomes in history.
GPS provides a useful playbook for understanding how other space-based technologies will create new investment opportunities across the economy.
Two of these—Geospatial Intelligence and Satellite Communications—already play critical roles in most major industries, including agriculture, logistics, telecom, and financial services.
Space technologies – GPS, geospatial intelligence, and satellite communications – are providing essential insights and information to enterprise and government customers who are willing to pay, despite market cycles.
With the upcoming debut of Starship, we will enter the next phase of the Space Economy. Due to the unprecedented size, range, and capabilities of Starship, this will further – and dramatically – expand the commercial opportunities in space, not only in low-Earth orbit, but also on the Moon, Mars and beyond.
With Starship, you will no longer need to push the envelopes of performance, weight, or reliability to the very limit without any regard for cost.
Once you can routinely launch large and heavy things into orbit and beyond, you no longer have to painstakingly carve away every superfluous ounce, design finicky origami structures of mind-bending complexity, or incorporate quadruple redundancy into every component. You can take risks and iterate.
You can dispense with ultra-pristine, clean-room conditions and build and assemble components in normal factories—if one satellite in a constellation fails because of a speck of dust, it’s only one of many. In fact, you can put your entire manufacturing operation in orbit and keep it fed with regular launches of raw materials.
Starship will open the door to many new possibilities, from hotel-like tourism in low-Earth orbit (or lunar orbit) to private space stations, human habitats on the Moon, off-earth manufacturing platforms, and even space debris cleanup.
To reap the maximum benefits of the space economy, companies, investors and governments need to first understand where growth is happening, why it’s happening, and what could be the possible ramifications.
Start with what leaves the launchpad today, and then play the tape forward in your mind.
It’s Investing 101: if used car sales go up, expect demand to spike for tree-shaped air fresheners. SpaceX tipped the first domino by bringing launch costs down, but the real growth will be in the secondary and tertiary consequences of that shift. What are they likely to be?
For investors and businesses, it isn’t about the thing that is sold today but what it will make possible for the people who will buy it tomorrow. As Wayne Gretsky famously said, skate to where the puck is going.
Just as the Interstate Highway System led to everything from motels to McDonald’s, building the orbital infrastructure will culminate in an array of complementary products and services. Apply a little imagination, and you’ll start to see the possibilities.
At a minimum, this type of forward-thinking should encompass space technologies (GPS, GEOINT, SatCom) and Starship.
The latter will fundamentally change the economics of space, further reducing the cost of orbit, enabling emerging industries, and making existing infrastructure obsolete. Investors, businesses, and governments should all plan for this new reality.
In the age of looming geopolitical uncertainty, how can NewSpace be a catalyst for bridging divides and kindling the spirit of collaboration and innovation?
Space-based assets are essential for our economic stability and national security, and governments around the world are prioritizing their protection.
As Scott Pace, Director of the Space Policy Institute and former Executive Secretary of the National Space Council, says “We’re dependent upon space, both militarily and economically, as much as, if not more than, Great Britain was dependent on the ocean in the seventeenth through nineteenth centuries.”
From the beginning of last year, the conflict in Ukraine has been a showcase of the growing capabilities of commercial space companies.
With the increasing demand for satellite Infrastructure, including SatCom mega-constellations like Starlink, Amazon’s Kuiper, and Guowang (China’s response to Starlink), Earth orbits are becoming increasingly crowded and Space Traffic Management will continue to be a key focus area going forward.
However, coordination of orbital assets is essential for our economic stability and national security. We need to find a way to safely, efficiently, and effectively coordinate activities in orbit.
SpaceX’s Starlink enabled Ukrainians to stay connected and combat Russian misinformation, while Earth imaging companies have provided a foundation of truth for what’s happening on the ground.
Satellite Communications is bringing billions of consumers and businesses online, enabling digital infrastructure on an unprecedented global scale. By bridging the digital divide, it promises a better quality of life for people everywhere.
Managing this global commons is challenging, particularly between countries with significant geopolitical tensions.
However, coordination of orbital assets is essential for our economic stability and national security. We need to find a way to safely, efficiently, and effectively coordinate activities in orbit.
