The Space Age is blasting-off again

The celebrations marking 50 years since the Apollo 11 mission have prompted many to question the state of our space ambitions today. While China, India and the United States are investing heavily in new programmes, competing with one another to gain the upper hand, the real impetus behind the second Space Age is coming from somewhere else: #startups.

The end of the Cold War and the Challenger disaster marked the end of the first Space Age. Without a geopolitical adversary and popular support, the United States was unwilling to maintain high levels of spending. Ambition was more limited. Of course, the last three decades have not been bereft of brilliant innovations, with the ESA’s Rosetta spacecraft and NASA’s Curiosity Rover immediately coming to mind. Nevertheless, the excitement palpable around the time of the Space Age has never really been recreated – until now, perhaps.

The retreat of big state players opened the door to the private sector. Over the last 20 years, outer space has become increasingly commercial, congested and contested. Tech giants such as Blue Origin, Boeing and Space X want to make their mark in the skies, as well as a host of smaller companies. These companies are all part of the so-called #NewSpace ecosystem, aiming to increase private investments and find disruptive market solutions to allow for cheaper-space flight. Berlin has established itself as a hotspot for this emerging economy, boasting over 100 New Space companies, start-ups and research institutes . Last Thursday, I co-moderated a Startup Grind panel on New Space. There were some really thought-provoking comments from the panellists Sebastian Straube, Founder and CEO of emerging venture capital fund Interstellar Ventures, Robert Boehme, Founder and CEO of lunar logistics company PT Scientists, and Nicole Thalhofer, Head of Space at the German Aerospace Industries Association (BDLI).

The theme of the evening - “The Sky is not the Limit” - was echoed by the panellists, who were all confident that space, or New Space, was the next big thing and that it belonged to everyone. Today satellites can be built in a garage, for instance, since the hardware only requires off-the-shelf products. Anyone can become involved in New Space and there are increasing numbers of events offering networking opportunities and the chance to discuss ideas and share expertise. Thalhofer and the BDLI are working hard to organise these events and connect relevant stakeholders. 

The views among New Space entrepreneurs are not so aligned however when it comes to the question of how the industry should move forward. Boehme makes a passionate case for vision at the front and centre of New Space’s future and believes that New Space companies can boom without public funding. He points out that that the vision of landing on the moon was enough to convince Omega to work with his company, PT Scientists. The astronauts on the Apollo 11 mission wore Omega watches outside their suits and the watchmaker was won over by the prospect of their new generation products being tested on the moon. In this instance, vision was powerful enough to drive new business. While agreeing that vision is important, Straube argues that there must be a degree of pragmatism, especially when pitching to investors in Europe. The way forward, from his perspective, is public-private partnerships.

The main obstacle for New Space, then, is finding willing investors, particularly in Europe. Whereas in the United States investors are ready to fund a project that might run significantly over-budget or perhaps not even succeed, European investors are more hesitant. The key is to communicate to investors what New Space is trying to achieve and the long-term potential of the industry. Boehme said that ideally each mission should make the next mission even cheaper, so that over time operating a commercial business in space will not only be affordable, but profitable. 

Another issue that needs to be addressed, Thalhofer added, is the legal and regulatory framework, as well as the availability of institutional support. Ultimately it boils down to Europe demonstrating its seriousness about the space industry. Without a space strategy, Europe is in danger of falling far behind not only the United States and China, but other emerging state players like India and Israel too. Earlier this year, Dirk Hoke, CEO of Airbus Defence and Space, warned that Europe needed to "get their act together". The #MadeInGermany and Made in Europe brands have the potential to dominate New Space, as they do in other industries, and there is no shortage of talent.

New Space is still relatively new and the next few years are sure to bring hugely exciting developments. Events like the Startup Grind panel are playing an important role by driving the conversation about the future of space and the role of commercial companies. It’s right that we look back and celebrate 50 years since the moon landing, but we must continue to look ahead too.