TLDR:
- Investors at ISSRDC conference in Boston shared how their investment strategies are adapting to new technologies and shifting market conditions in LEO.
- Network effects in LEO have driven growth in the number of businesses that can make money in the industry.
After nearly a decade of steady growth in venture capital investment into space startups, the market sentiment seemed to cool down in the aftermath of the pandemic. Investors shared how some startups were trying to generate extra profits by simply taking terrestrial business models or technologies and placing them in space. As access to LEO has increased, the number of objects in orbit has grown exponentially, driving further growth in the industry.
With the deorbit of ISS in the early 2030s and the potential shift of US government spending towards commercial space stations, the industry may see a significant impact. Investors also discussed the exit strategies for space startups, with IPOs potentially becoming less attractive due to disclosure requirements. Selling to strategic investors or into secondary markets may be a more preferred exit strategy going forward.
The future of the space industry, as discussed by investors at the conference, relies on adapting to new technologies, leveraging network effects in LEO, and exploring alternative exit strategies for startups.
