space technology

Auto Added by WPeMatico

The US wants startups to get a piece of the $16 billion spent on space tech

The U.S. government is one of the biggest spenders in the nascent space industry, and the man who handles the money for the Air Force’s $16 billion checkbook wants startups to know that his door is open for them.

In all, Will Roper, the Assistant Secretary of the Air Force for Acquisition, Technology and Logistics, handles about $60 billion worth of budget for the Air Force — a mandate that includes spending money on the new tech initiatives the Air Force deems important.

Historically, the Department of Defense hasn’t been the greatest at working with startups — and many tech companies have been loath to work with the DoD. However, since much of modern civilian infrastructure is based on global positioning systems and other satellite technologies that fall under the Defense Department’s purview, those views on cooperation are changing on both sides.

“Space isn’t a quiet domain of communication and navigation and exploration anymore,” Roper told the audience at TechCrunch’s latest Sessions event, TC Sessions: Space 2020. “It’s increasingly becoming a hostile place… So we’re gearing up a new kind of competition on the military side that could extend to space and that’s creating a lot of new space programs.”

Roper emphasized that the interest from the Air Force and the government more broadly extends well beyond offensive capabilities and military priorities. As space becomes an economic opportunity, Roper sees the Air Force as an engine for driving technology development forward in ways that have commercial benefits.

“It’s a great, great time for innovation in new technologies that could help the military, but we want to do more than just help the military. That’s the old thinking in the Pentagon. That’s all that would help us win the Cold War in the 20th Century, but it’s not going to help us in the 21st, where technology is globalized and accelerating,” Roper said.

“We want to find ways where our military mission and our funding can help accelerate commercial markets too, so it’s competing on a much bigger stage. But we think it’s where we need to aspire to be, so that we’re playing the right catalyst role in this nation and with our partners around the world,” Roper said.

There are several programs that startups can tap to get those federal dollars. Two of the easiest points of entry are through the AFWERX and its recently announced SpaceWERX arm focused entirely on space technology.

“These look like any tech company,” Roper told the audience at the TechCrunch event. “They’re outside our fence lines. They’re easy to walk into… Now you don’t have to know the mission, we will help you find the mission and the customer — the warfighter associated with it. It’s a great model because it keeps the company focused on what they know best, which is their tech.”

Over the last three years, Roper estimated that the AFWERX program had brought 2,300 companies into the Air Force and Space Force programs, and most of them had never worked with the military before, he said.

Within AFWERX there are three programs that particularly relate to integrating startups into the procurement process, Roper said. One is the Spark program, which pairs military with private industry; one is the AFVentures program, which is designed to finance new innovations coming from private industry; and finally there’s the Prime program, which helps commercialize and certify technologies.

Roper pointed to the recent certification the Air Force gave to Joby Aviation for its flying cars. “So there’s a new military market that will hopefully generate a new commercial market,” Roper said.

In 2021, the Prime program will expand to space technologies, according to Roper.

As the demand for new tech grows, there’s no shortage of innovations Roper would like to see from private industry. From new autonomous innovations that could help co-pilot spacecraft to technology for refueling and in-space maneuverability, and reusable equipment from boosters to other components that can bring costs down.

Roper also acknowledged that the Pentagon has a long way to go to “hack the acquisition system” when it comes to dual-use technologies.

Entrepreneurs have pointed out that one of the biggest obstacles to the growth of the commercial space industry has been the inability of the U.S. government to open up the technology for use by private industry.

Roper hopes to change that. “We want to use our military dollars, our mission, and potentially our certifications to help get you there without changing your core product,” he said. “If you succeed as a commercial success, then we succeed as well, because now we’ve got a great tech partner, that hopefully we can continue to come to to solve problems in future. The thing that we’ll want to understand early on is how our military market and all those benefits I just mentioned, how can they help you get to commercial success? And what is it that we not need to do to pull you off that trajectory?”

Contracts with AFWERX are fixed-price and progress as companies hit certain milestones on the product roadmap. These orders increase incrementally as the technology proves itself, so a contract could start with the delivery of a prototype, then experimental usage, then a commercial contract, then broad adoption. “What we’re looking to do is see if you can move the ball forward on your technology, and if you do, then we do another contract. We step you up our process,” Roper said.

Roper sees the project as nothing less than the evolution of the aerospace and defense industry.

“We have a lot of amazing companies today that helped build stealth bombers and space planes and all sorts of awesome stuff. They’re defense companies and we still need them,” Roper said. “What we’re hoping to help build in this century is a set of new companies that are just tech companies. They’re not defense, purely, and they’re not commercial purely. They’re just technology companies and they do a bit of business on both sides.”

Powered by WPeMatico

TC Sessions: Space 2020 launches next week

TC Sessions: Space 2020, our first conference dedicated to galactic endeavors, launches in just one week (December 16-17). We can’t wait to host out-of-this-world experts, innovative agencies and the bold, boundary-breaking startups focused on building a future in space.

If you have not yet secured your seat on the space-race express, do so now while late-registration prices remain in play — prices go up December 15. You’ll also find discounts for groupsstudents and active military/government employees.

Ready to place your early-stage startup in orbit with industry movers and shakers — and pitch your startup to attendees during the event? Buy a Space Startup Exhibitor Pass. We even offer a super budget-friendly, expo-only pass for $25 (Note: This does not include networking, access to the main-stage programming or the free Extra Crunch membership).

Pro Tip: Not all virtual conferences are created equal. Michael McCarthy, the CEO of Repositax, found unexpected benefits:

The online experience was far more efficient than I anticipated, and the video on demand was a huge benefit. I could attend without disrupting my customer work by moving between the main stage and breakout presentations knowing I could catch anything I missed later.

The two-day event agenda practically vibrates with opportunity. Let’s look at just a few of the many sessions waiting for you:

  • Fast Money Breakout Sessions: Learn about the different accelerators, incubators and grant programs available to help you fund and grow your startup. You’ll find six of these breakout sessions spanning the two days. Check the agenda for exact days and times and plan your schedule accordingly. Don’t miss out on this opportunity to find money, um, fast.
  • Founders in Focus Series: TechCrunch editors will sit down and talk with four different founders poised to be the next big disruptors in the space industry. Don’t miss this four-part series with Araz Feyzi, co-founder of Kayhan Space; Will Edwards, CEO of Firehawk Aerospace; Pawan Chandana, co-founder of Skyroot; and Yotam Ariel, co-founder of Bluefield Technologies.
  • Pitch Feedback Session: Join us for a pitch feedback session open to all startups exhibiting at TC Sessions: Space 2020 and moderated by TechCrunch staff.

This may be our first foray into space technology, but we’ve hosted many TC Sessions. Here’s what Karin Maake, senior director of communications at FlashParking, told us about her experience:

TC Sessions isn’t just an educational opportunity, it’s a real networking opportunity. Everyone was passionate and open to creating pilot programs or other partnerships. That was the most exciting part. And now — thanks to a conference connection — we’re talking with Goodyear’s Innovation Lab.

TC Sessions: Space 2020 runs from December 16-17. You have just one week left to buy your pass, join your global community of bold boundary breakers and move your space-based business forward.

Is your company interested in sponsoring TC Sessions: Space 2020? Click here to talk with us about available opportunities.

Powered by WPeMatico

Student discount passes available for TC Sessions: Space 2020

Whether space is the final frontier remains to be seen, but it’s certainly the next one as far as we’re concerned. On December 16-17, we’re hosting TC Sessions: Space 2020, a two-day online conference and our first event focused squarely on space technology and the early-stage startups and investors that make it possible.

The future of this industry is wide open, and it’s going to require cultivating a deep bench of visionaries to sustain it. And it starts with affordable access for students eager to turn science fiction into fact. Grab your $50 student pass here and get ready to shift your career into warp speed.

Pro Tip: We offer a range of ticket options for nonstudents (including discounts for government, military and nonprofits). Buy yours before early-bird pricing ends on November 13 at 11:59 p.m. PST. Also, current Extra Crunch subscribers receive an additional 20% discount on passes.

This is your chance to hear from the best and brightest people leading this universal expedition. You’ll meet and engage with engineers, founders, investors, executives, military and government officials.

We’re talking officials like NASA administrator Jim Bridenstine and Space Command’s General John W. Raymond. We’re talking founders like Relativity Space’s Tim Ellis and Rocket Lab’s Peter Beck. We’re talking investors like Bessemer Venture Partners’ Tess Hatch and SpaceFund’s Meagan Crawford. And that’s just the tip of the rocket, so to speak.

We’re packing the two-day event with top-notch programming. Set coordinates for the main stage for fireside chats and moderated panel discussions. TechCrunch editors ask the tough questions and dig deep on topics like launch services, orbital operations, ground station networks, broadband communications, earth observation data, manufacturing and military operations in space.

Don’t miss the breakout sessions and Q&As. Breakouts let you explore specific topics. Main stage events always generate lots of questions, and the Q&A sessions give the audience a chance to pose questions to speakers who appeared on the main stage.

Searching for a stellar internship or a job that’s out of this world? Ouch. Explore the expo area where you’ll find early-stage space startups and sponsors showcasing their tech and talent.

That brings us to networking. Remember, this virtual conference reaches thousands of people around the world. It’s prime territory for expanding your network — an essential part of startup success. You’ll have free use of CrunchMatch, our AI-powered networking platform.

It makes quick, efficient work out of finding, scheduling and meeting people. Not just any people — people who align with your startup interests. People who can help you build a business or a career. Answer a few quick questions when you register and CrunchMatch goes to work for you.

We’ll have plenty more to announce over the next two months, so stay tuned. TC Sessions: Space 2020 blasts off on December 16-17. Don’t wait, buy your $50 student pass today and boldly go!

Is your company interested in sponsoring TC Sessions: Space 2020? Click here to talk with us about available opportunities.

 

Powered by WPeMatico

All eyes are on the next liquidity event when it comes to space startups

At the FAA’s 23rd Annual Commercial Commercial Space Transportation Conference in Washington, DC on Wednesday, a panel dedicated to the topic of trends in VC around space startups touched on public vs. private funding, the right kinds of space companies that should even be considering venture funding, and, perhaps most notably, the big L: Liquidity.

Moderator Tess Hatch, Vice President at Bessemer Venture Partners, addressed the topic in response to an audience question that noted while we’ve heard a lot about how much money will flow into space-related startups from the VC community, we haven’t actually et seen much in the way of liquidity events that prove out the validity of these investments.

“In 2008, a company called Skybox was created and a handful of years later Google acquired the company for $500 million,” Hatch said. “Every venture capitalist’s ears perked up and they thought ‘Hey, that’s pretty good ROI in a short amount of time – maybe the space thing is an investable area’ and then a ton of venture capital investments flooded into space startups, and all of these venture capitalists made one, or maybe two investments in the area. Since then, there have not been many — if any – liquidity events: Perhaps Virgin Galactic going public via the SPAC (special uprose vehicle) on the New York Stock Exchange late last year would be the second. So we’re still waiting; we’re still waiting for those exits, we are still waiting for companies to pave the path for the 400+ startups in the ecosystem to return our investment.”

Hatch added that she’s looking at a number of companies who have the potential to break this somewhat prolonged exit drought in 2020, including five who are either quite mature in terms of their development, naming SpaceX, Rocket Lab, Planet and Spire as all likely candidates to have some kind of liquidity event in 2020, with the mostly likely being an IPO.

Space as an industry was described to me recently as a ‘maturing’ startup market by Space Angels CEO Chad Anderson, by virtue of the distribution of activity in terms of the overall investment rounds in the sector. There is indeed a lot of activity with early stage companies and seed rounds, but the fact remains that there hasn’t been much in the way of exits, and it’s also worth pointing out that corporate VCs haven’t been as acquisitive in space as some of their consumer and enterprise technology counterparts.

The panel touched on a lot more apart from liquidity, which actually only came up towards the end of the discussion, which included panelists Astranis CEO and co-founder John Gedmark; Capella Space CEO and founder Payam Banazadeh and Rocket Lab VP of Global Commercial Launch Services Shane Fleming. Both Gedmark and Banazadeh addressed aspects of the risks and benefits of seeking VC as a space technology company.

“Not every space business is a venture-backable business,” said Banazadeh earlier in the conversation. “But there are a lot of space businesses that are specifically going after raising venture money, and that’s dangerous for everyone – because at the end of the day venture is looking at high risk, high return. The ‘high return’ comes from being able to get substantial amount of revenue in a market that’s big
enough for those revenues to be coming from. But if your idea is to go build, maybe, some very specific part in a satellite, then you have to make the case of why you’ll be able to make those returns for the investors, and in a lot of cases, that’s just not possible.”

Banazadeh also concedes that doing any kind of space technology development is expensive, and the money has to come from somewhere. Gedmark talked about one popular source, government funding and grants, and why that often isn’t as obviously a positive thing for startups as it might seem.

“Small government grants can be great, and obviously a fantastic source of non dilutive capital,” Gedmark said. “But there is a little bit of a trick there, or something to be aware of: I think people are often surprised how much time is spent in the early days of a startup refining the exact idea and the product, and if you’re not certain that you have the that product market fit […] then, the government grant can be extremely dangerous, because they will fund you to do something that is sort of similar to what to what you’re doing, but it really prevents you changing your approach later; you’re going to end up spending time executing on the specific project of the program manager on the government side and you’re executing on what they want.”

VC funds, on the other hand, come with the built-in expectation that you’re going to refine and potentially even change direction altogether, Gedmark says. Depending on the terms of the public funding you’re seeking, that flexibility may not be part of the arrangement, which ultimately could be more important than a bit of equity dilution.

Powered by WPeMatico