attracting private investment for lunar commerce: toward economically sustainable development
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Network & Space Systems Space Exploration. Attracting Private Investment for Lunar Commerce: Toward Economically Sustainable Development. Rutgers Symposium on Lunar Settlements 7 June 2007 New Brunswick, NJ. Paul Eckert , Ph.D. International & Commercial Strategist - PowerPoint PPT PresentationTRANSCRIPT
Paul Eckert , Ph.D.International & Commercial StrategistThe Boeing Company – IDS – Space Exploration
Paul Eckert , Ph.D.International & Commercial StrategistThe Boeing Company – IDS – Space Exploration
Rutgers Symposium on Lunar Settlements7 June 2007New Brunswick, NJ
Attracting Private Investment for Lunar Commerce:Toward Economically Sustainable Development
Attracting Private Investment for Lunar Commerce:Toward Economically Sustainable Development
Network & Space SystemsSpace Exploration
Attracting Private Investment7 June 2007 2
Roundtables revealed connections.Roundtables revealed connections.
Roundtable 1 Dallas, Texas – June 2005 Broad survey of lunar-related opportunities
Roundtable 2 Houston, Texas – Oct. 2005 Focus on lunar-related solar power, propellant, media,
robotics
Roundtable 3 Las Vegas, NV – July 2006 Shift focus to entire Earth-Moon economic system
Investment Summits – 2007 and onward
2Boeing Photo
www.spacecommerceroundtable.com
Attracting Private Investment7 June 2007 3
Roundtables expressed global views.Roundtables expressed global views.
3Boeing Photo
www.spacecommerceroundtable.com
Space Commerce Space Commerce RoundtableRoundtable
Space Frontier Space Frontier FoundationFoundation
National Space National Space SocietySociety
Attracting Private Investment7 June 2007 4
Roundtables yielded insights.Roundtables yielded insights.
Increasing Investment While Increasing Investment While Reducing RiskReducing Risk
Ventures
EECCOONNOOMMIICC
GGRROOWWTTHH
Space Companies: Established
Space Companies: Established
Space Companies:
Startups
Space Companies:
Startups
Non-Space CompaniesNon-Space Companies
InvestorsInvestorsExperts/Partners:
Government, Academia,
Associations
Experts/Partners:
Government, Academia,
Associations
DemonstrationsDemonstrations
ResearchResearch
DialogueDialogue
ServicesServices
SurfaceSurface
PlatformsPlatforms
EnergyEnergy
InformationInformation
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Attracting Private Investment7 June 2007 5
More private investment is essential for commercial growth.More private investment is essential for commercial growth.
Problems facing space commerce are financial as much as technical.
Commerce could lower costs and increase availability of products and services, but public funding has not been enough to get things started.
A strategic move is to bring more investors into space commerce.
“Angels” are most likely to be interested in early-stage, high-risk, high-opportunity projects; larger investors usually get involved later.
Angel investors: listen to other investors, more than to analyst reports or
entrepreneurial pitches prefer invitations from people they already know specialize and want opportunities expressed in familiar terms have many opportunities to choose from
Attracting Private Investment7 June 2007 6
Investors are telling uswhat they want.Investors are telling uswhat they want.
Space Investment Summit New York City – Financial District – 16 & 17 April 2007 Co-Hosts: Space Commerce Roundtable, Space Frontier Foundation Supporting Organization: National Space Society
Space Venture Finance Symposium Dallas TX - 24 May 2007 Host: National Space Society Supporting Organizations: Space Commerce Roundtable, Space
Frontier Foundation, and Others
Collaborative Investment Event California - Autumn 2007 Coalition: SCR, SFF, NSS, California Space Authority, Alliance for
Commercial Enterprises in Space (ACES), NASA Space Portal, Etc.
Attracting Private Investment7 June 2007 7
Investors want to manage risk.Investors want to manage risk.
Market Size & Breadth Risk that market will not be sufficiently large or accessible
Residual Value Risk of insufficient value remaining if project fails
Competitive Assessment Risk of competitors’ taking market
Funding Availability Risk that capital will be unavailable when required
Human Factors Risk that management team or staff will be inadequate
Technical Viability Risk that technical approach will prove ineffective
Legal/Regulatory Constraints Risk of adverse government action
Attracting Private Investment7 June 2007 8
Investors want better approaches.Investors want better approaches.
How?How?
Entrepreneurial Entrepreneurial InnovationInnovation
What?What? New product/service Improved cost, performance,
safety, reliability
Who/Why?Who/Why?
Creativity Risk-taking Intrinsic
motivation
Identifying opportunity
Accumulating resources
Producing product/service
Marketing product/service
Building organization Responding to
government/society
Attracting Private Investment7 June 2007 9
Investors above all want markets. Investors above all want markets.
Solar Power: EO satellites, lunar surface ISRU
Propellant: EO depot, lunar surface ISRU
Communications/Navigation: EO satellites, cislunar network
Observation: Imaging of Earth & space, ground & space sites
Media: Advertising, entertainment, archive continuum
Structures: Habitations for EO, L1, lunar surface
Robotics: Orbital Express, lunar surface efforts
Transportation/Travel: Suborbital, orbital, cislunar, lunar
Attracting Private Investment7 June 2007 10
Transportation is a market enabler.Transportation is a market enabler.
International Space Station (ISS) utilization could stimulate demand for transportation.
Transportation availability could encourage ISS utilization.
Fully commercial Earth-orbiting platforms are also in development, which could benefit from the ISS “first step.”
COTS is a NASA public-private partnership for commercial Earth-to-Orbit vehicle development, funding Rocketplane Kistler (RpK) & Space Exploration Technologies (SpaceX).
Many entrepreneurs view Earth-to-orbit transportation as a stepping stone to the Moon and beyond.
Robust ISS utilization could create sufficient demand for non-U.S. as well as U.S. transportation services.
Attracting Private Investment7 June 2007 11
Interoperability expands markets.Interoperability expands markets.
Increased Supply and Demand Larger supplier and customer base
Reduced Cost Shared infrastructure & consumables Increased competition in commercial markets Decreased logistics overhead (i.e., fewer unique parts) Enhanced reuse & reconfigurability (e.g., lander converted to
propellant depot)
Enhanced Safety Rescue Repair
Attracting Private Investment7 June 2007 12
Interoperability involvesstandardized interfaces.Interoperability involvesstandardized interfaces.
Pressure vessels (any functional volume pressurized for human habitation: landers, habitats, rovers, logistics modules, etc.)
Electrical outlets and plugs
Liquid connectors for each type (e.g., water)
Gas connectors for each type (e.g., oxygen)
Data (e.g., Ethernet cables, RF/WiFi)
Airlock control panels
Spacesuit connections with habitat life support and environment control systems (servicing, recharging, umbilical operations)
Robotic manipulating mechanisms (robot to system interfaces)
Attracting Private Investment7 June 2007 13
Interoperability involves interchangeable items.Interoperability involves interchangeable items.
Assemblies: Life support Power (management,
generation, & storage) Waste management Thermal management Crew interface panel (e.g.,
command & control station) Airlocks Command & data handling
systems
Components: Microprocessors Valves Tanks Filters Keyboards Software Fans Computers Pumps Batteries Solar arrays Circuit boards Antennas
Attracting Private Investment7 June 2007 14
Government can encourage early market growth, within limits.Government can encourage early market growth, within limits.
Content & images provided by Howard McCurdy, Roger Launius, & Thomas MatulaContent & images provided by Howard McCurdy, Roger Launius, & Thomas Matula
Purchase (anchor tenancy)
R&D investment
Incentives: tax credits, etc.
Legal/regulatory action: liability, property rights, etc.
Attracting Private Investment7 June 2007 15
Multiple-use facilities attract more customers into markets.Multiple-use facilities attract more customers into markets.
NASA Image
NASA Image
Costs decrease through shared infrastructure, transportation, comm/nav, power, life support, etc.
Anchor tenants (bases, observatories, etc.) pave the way for additional users.
Attracting Private Investment7 June 2007 16
Multiple use technologies bring market profitability closer.Multiple use technologies bring market profitability closer.
Earth & Moon Technology Overlap same products/services that yield near-term profits on
Earth also yield longer-term profits on the Moon
Earth Profits Near-Term improved undersea and underground robots in the energy
and mining industries
Moon Profits Later lunar robotic factory involving multiple industries
7 June 2007 Attracting Private Investment 17
• Entrepreneurial innovation offers new products and services.
• Transportation is a key enabler.• Interoperability expands customer and
supplier base.• Government helps markets expand.• Multiple-use facilities attract more customers.• Multiple-use technologies bring market
profitability closer.
Market growth attracts investment, enhancing commercial sustainability.
NASA Image
Attracting Private Investment7 June 2007 18
For More InformationFor More Information
Paul Eckert, Ph.D.
International & Commercial Strategist
Boeing IDS - Space Exploration
703-414-6392
Mark Lorimer
Administrative Support Coordinator
562-233-6400 (cell)