Foust: Economic Downturn to Effect NewSpace

Is there an economic downturn in space?
Jeff Foust
Venture Beat

“Some companies, like Virgin Galactic, SpaceX and Blue Origin (Amazon founder Jeff Bezos’ secretive launch vehicle venture) are funded primarily or exclusively by extremely wealthy founders, and are less susceptible to market forces that could dry up outside investors. For other, less fortunate NewSpace players, the downturn has come at exactly the wrong time. Lining up the ten or even hundred million dollars just got a whole lot harder. Without the money, these companies’ visions of reusable rockets, lunar rovers and the like will probably remain just that — visions — and the organizations themselves will either go into hibernation or out of business entirely.

“So far, the tone hasn’t been that alarmist. At last week’s Space Investment Summit 5 (SIS5) in Los Angeles, NewSpace firms, investors and industry analysts downplayed any immediate effects the country’s economic situation may be having on funding prospects.”