2022
New Horizons
event
Top 5 takeaways
Space plays an important role in our world
Space permeates our everyday lives: its technologies, its research, its advances, its infinite possibilities.
Data collected in Space is the key to taking care of our planet. So we can be more connected, efficient, digitalised and green than ever before. It is no wonder then, that space-based technologies form an increasingly important component of economic competitiveness.
The industry is projected to grow from its current $340bn form to $1trn over the next decades.
And with growth projection comes commercial and developmental opportunity.
However you look at it, Space matters.
Together with our partners, we are here to empower the space industry and empower the private space sector.
“When you wake up in the morning and you switch on your mobile phone or your car service, Galileo is working. This is a public service. Galileo is the biggest contract ever awarded by European Union indirect management. It’s a service level contract. This is empowerment of the industry and of the private sector.”
Rodrigo da Costa
EUSPA
New opportunity on Europe’s doorstep
We are on the precipice of a new chapter in space history – New Space. The beacon of international space collaboration: the International Space Station (ISS), will be decommissioned in 2030.
In a post ISS era, a new opportunity will present itself. A unique opportunity especially for European companies who will have the chance to capture the future-focussed market segment, and commercialise more than ever before.
The Low Earth Orbit (LEO) market will be particularly significant – as it emerges from under the wing of public agencies like NASA and ESA and steps into the free market foray (yet still being able to access their crucial anchor contracts). The LEO economy will be rife with commercial activity, collaboration and opportunity. And Europe boasts the talent to be able to seriously leverage on this opportunity.
The market potential of this new era of space-related solutions is being increasingly recognised by the investment world.
“It’s clear that Space is changing drastically, it used to be mostly government funded and now the private sector is really taking initiative. Let’s let the market speak and define its goals and opportunities and this is what’s happening right now. Being a large player in space, we’d like to help you. I’m advocating now for an ESA of the future, which is not the ESA of the past. We really want to change the way we work: and that means we act more as a partner in developing a product or an idea than just a customer. Partner means we offer our expertise to a company.”
Josef Aschbacher
ESA
In this new dawn: Europe’s investment funds are crucial
As with any tech sector, investment funds play a critical role in developing the space market.
Importantly, the application of space technology is so much broader – it’s not just about satellites, launchers and rockets – but it’s about how space tech and data can be applied or expanded to many other sectors of the economy.
We need to encourage the market to grasp the space opportunity and democratise itself.
There is a wealth of opportunities for teams, whether specifically tech or space focussed, to generalist teams wanting to dip their toes in the space sector.
On the investee company side, we are seeing increasingly that this draws attention from both ends of this spectrum. And the reason is simple: not only do the financials make sense (as these companies can generate strong returns) but the commercialisation makes sense too. Tech may start with space but the impact in the economy and European lives is much broader.
In fact, space entrepreneurs have their choice of investors when it comes to money on the table. But what makes a difference is the breadth and wealth of experience of these teams: strategic advice, operational experience, networks & connections, experience with expansion and growth strategy.
Investing in space does not come without its challenges, high upfront investment costs and long capital cycles – not to mention a volatile economic climate – to name a few. Yet on balance the commercial opportunity that currently presents itself makes for a very strong case for investment managers.
“One thing is certain, the next three years will be a better investment environment than the last three years. A quote that comes to mind in this situation is “the best way to predict the future is to invent it*”. Invention is innovation, and venture capital is the financing of that innovation. If you are wondering how to best protect yourselves during a period of fluctuation, look to technology. Technology, at better prices, might actually be the best hedge against the uncertain times we face today. And space is untapped territory, let’s seize the opportunity. Because Europe as an innovation continent has put itself on the map.”
Bjorn Tremmerie
EIF
*Quote is widely attribute to the American computer scientist, Alan Kay.
The European Space ecosystem is galvanising
This unique moment in time is where we at the EIF have a role to play, in collaboration with our partners at EIB, ESA, the European Commission and EUSPA, to support & advise teams, to raise awareness, to host matchmaking events and opportunities, to invest and hence attract others to the sector, to share knowhow & market intelligence, to democratise the investment space and hence make for a space future which is more European than ever before.
Here at the EIF we have built on a strong InnovFin Space Pilot to better understand the market and we know where we are going. Today we have the driving force that is the InvestEU programme behind us, catalysed further by the CASSINI top-up funding (total EUR 600M). And with all this we are looking at over 1.2bn in space financing to hit the market. In addition the Cassini Space Entrepreneurship Initiative will help build a conducive ecosystem for the funding to be absorbed. More specifically, the Cassini initiative will foster matchmaking between stakeholders and help start-ups in their development journey.
In this future, we can imagine space transitioning from an investment sector to an investment strategy. We can imagine a mushroom effect of teams willing to take on the challenges, and reap the rewards. Space companies who are given strong support and guidance in not only growing their business but tapping into big clients and anchor contracts (precisely through agencies such as ESA and EUSPA) to drive their ventures to new heights..
And this is our collective promise to the market. But we cannot do it without a strong and sustainable private capital ecosystem.
Together we can open doors to new space tech breakthroughs in Europe.
“The way we do space should change and is changing. This has become a collective adventure. It’s imperative for the competitiveness of our industrial ecosystem.”
Catherine Kavvada
European Commission DEFIS
New horizons: Europe is the future of Space
“At ESA We normally count the stars, today we fund them. And to do this we have to change the way we work. There are 3 key elements: talent, speed and capital.”
Geraldine Naja
ESA
“We need the private sector, we need you (fund managers and ecosystem partners) to make our dreams a reality, not tomorrow but today. I hope we can do it together because all the initiatives at European level and EIB Group level are there. Now it’s time to deliver.”
VP Kris Peeters
EIB