July
13, 2016
Euroconsult's latest report, Top
NewSpace Startups to Watch,
assesses 20 startups via
business-based criteria in
robust individual profiles in
order to track their current
standing, challenges, and future
potential within the
rapidly-evolving space/satellite
value chain.
The trajectory of these
startups' impact can be
described as either incremental
(e.g., adding launch capacity to
a supply-constrained market),
disruptive (e.g., shifting the
fundamental economic model for
their own segment), or enabling
(e.g., shifting a fundamental
economic model for an upstream
or downstream market).
Contemplation of exit strategies
and impacts provide frameworks
for tracking these startups over
time.
"All NewSpace startups that
qualified for this report were
North-American-based, with
clusters in Seattle, Silicon
Valley, and Washington D.C.
Based in Vancouver, UrtheCast is
the only one not located in the
U.S.," said Sima Fishman,
Managing Director of Euroconsult
U.S.A. and editor of the report.
"More than 40 different
investors hold stakes in these
20 companies, with a handful
investing in more than one."
Functional areas attracting a
great deal of startup interest
include Earth observation,
satellite communications
(satcom) constellations, and
space transportation (i.e.,
launch) and exploration. Some
balance between these three
allows for inclusion as well of
two companies distributing
equipment whose new technology
may enable different economic
models.
Several themes have emerged as
success factors. Market and
application development are
predictably prevalent. Companies
who are struggling to raise
funding would generally benefit
from an anchor customer to
provide some comfort to
investors about the market
possibility; this seems to
manifest in partnering
approaches being taken to
distribution (and supplier
relationships as well for that
matter). In looking at overlap
between these operations, as
well as overlap with other
existing businesses, it is
noticeable that there are some
areas in which the first to
launch could stop a competing
startup from completing their
investment, rewarding the first
mover with a sustainable
advantage.
One of the focal areas for the
report is watching what comes
next for these NewSpace actors.
All of the constellations
anticipate multiple launches
between 2016 and 2019, with some
launch schedules extending even
beyond that time frame.
Fundraising will continue to be
an issue, particularly for the
expensive satcom constellations,
in some cases on a make-or-break
basis. Prototypes, initial
customer trials, and scaling for
production are on the calendar
for both profiled
equipment-based startups.
Finally, operational testing and
research and development toward
next generation product
refinements round out the
consolidated list of what to
watch for from these companies
in the next few years.
While Euroconsult's recently
published
Prospects for the Small
Satellite Market takes a
consolidated approach by
presenting the various factors
that will drive/inhibit growth
in demand for small satellites
over the next ten years,
categorizing by
mass/client/application/region,
Top NewSpace Startups to Watch
focuses on the specific
companies within the
space/satellite value chain,
giving highly detailed
individual profiles covering the
outlook, innovations,
environment and success factors
that must be achieved for each
company to move beyond the
startup phase. Taken together,
these two reports bring a
detailed view of both existing
and potential business
opportunities in this explosive
new sector.
