VCs in Space Wow – “In 2018 alone, 114 VC […]

VCs in Space

Wow – “In 2018 alone, 114 VC funds made their first space investment” and 70% of the dollars invested happened in the past 3 years.

So far, I have led two space investments — SpaceX and Planet — both in the nascent 2009-2011 period (the far left bar in the bar chart). They have gone on to raise $2.6B.

From the Space Angels interview: Why did you initially invest in Space and why do you continue to do so?

SJ: Quite simply, it’s my job to make money through VC investments and make the world a better place while we’re at it.

On the investment side, I have followed a simple rule for the past 24 years as a venture capitalist—I invest in companies that are unlike anything I have seen before, yet adjacent to an area of prior expertise. And like most VCs, I also look for inspirational leaders, a motivational mission, and a large market size. So, you can imagine why I was smitten with SpaceX when we first invested, back before they had put a satellite in orbit with the Falcon 1. I had a prepared mind as a long-standing space geek—launching my own supersonic rockets for 16 years, flying in zero gravity, supporting space philanthropies like B612 and a lunar non-profit (still in stealth), and turning the office into a veritable space museum full of rocket engines and a piece of every Lunar Module from Apollo 10 to 17.

As for making the world a better place, democratizing and easing the access to space benefits many other businesses, and Planet is a great example of a beneficiary—better Earth observation allows us to be better stewards of this planet. Every entrepreneur seeks to change the world. But why stop there? There are other worlds out there, beyond the frontiers of the imagination.

What are the key milestones you are looking for to sustain your space investment thesis?

SJ: I continue to focus on organic growth from customer cash flows. These flows have been quite healthy at SpaceX and Planet, and the broadband data business, which will be commencing soon, is the largest business opportunity I have ever seen. Now that the U.S. and China have a new space race to the Moon underway, there will be multiple approaches seen to establish a permanent lunar presence in the next five years, and from years of preparatory analysis, we figure that it will cost less than $5B, all in, for an agile, commercial, new space approach to moon base alpha. The future is quite bright indeed!

From: https://www.spaceangels.com/post/venture-capital-investment-in-space