The space race of today is a very different beast to last century’s technological cage-fight between the Cold War superpowers. And few people embody the new order better than Indian rocket man Srinath Ravichandran.
He co-founded Chennai-based aerospace manufacturer AgniKul Cosmos seven years ago, with the dream of making space more accessible and affordable. This year, the company pulled off its first sub-orbital test flight, using a 3D-printed engine.
The entrepreneur thinks space should be a platform for innovative projects, rather than just a destination in itself. His company’s disruptive approach – and its grassroots origin story – are a world away from our typical ideas about the space industry.
Speaking to MONIIFY Playbook, Ravichandran described a colorful early encounter in Los Angeles with a man who would go on to become one of his customers. The man was hauling around a small satellite in a baby stroller, not exactly how they do things at Nasa.
“He was going on and on about not being able to put that satellite in space,” says Ravichandran. “That left its mark on me. I really started thinking: Is it really that hard? Why should so many people struggle to go to space?”
Booming business
It’s a sign of just how much things are changing in the space business, which until recently was a very exclusive, very expensive club. A steep drop in the cost of both satellites, and the rocket technology that gets them to orbit, has burst the sector open, sparking a new space race. Some of the players are from emerging economies that previously were kept out because of the high cost of entry.
As a result, business is booming on the so-called final frontier, with the space economy growing at twice the rate of the one on earth. It’s predicted to be worth $1.8 trillion by 2035, up from $630 billion last year, according to a report by McKinsey and the World Economic Forum.
“We are going through a huge shift,” says Ravichandran.
It all adds up to an intriguing prospect for investors, those who just want to make money, as well as those drawn by the exciting appeal of pushing beyond Earth’s atmosphere.
The satellite revolution
Modern microsatellites are nearly as powerful as the conventional 1970s-era models, but much smaller, and about 100 times cheaper. That’s led to a surge in the number of satellites entering orbit.
“In the past, the cost of access to space was unaffordable, particularly for entrepreneurs from emerging markets,” says Hamza Hameed, chair of the Space Generation Advisory Council, a global non-profit that connects young people with the space industry.
“It’s much more plausible [now] for smaller companies, from different parts of the world, to put up assets into space.”
Denis Kalyshkin is an aerospace engineer and the founder of Space Ambition, a platform that educates people about investing in the sector. He says the sector was also getting major interest from investors who’d had a lifelong fascination with space.
“More people across the globe, investors and entrepreneurs, [are starting] to understand… ‘I’ve always dreamed about space, so it’s time to do something’,” he says.
Earth problems, space solutions
The new wave of private satellite companies is generally using space technology to create solutions to issues here on Earth.
Firms like China’s GalaxySpace and Shanghai Spacecom Satellite Technology, and Singapore’s Kacific Broadband Satellites use satellites to bring faster and cheaper internet to remote areas.
Skylo, Turkey’s Plan-S and China’s CommSat and Guodian Gaoke specialize in connecting devices in far-flung places. Their satellites are used to help businesses monitor their assets from a distance, or let farmers collect data from sensors in their fields, to improve crop yields or track their livestock.
India’s Pixxel, which started as a college project, uses its satellites to give access to pictures of crops at different growth stages, and says it can detect early pipeline leaks. Others like South Africa’s Dragonfly Aerospace and Japan’s Synspective use their images for monitoring climate change and disaster management.
As for getting those satellites up there, Elon Musk’s SpaceX is still the big player in the rocket game. But others want a slice of the pie.
China’s LandSpace is developing reusable rockets and wants to take on SpaceX in offering orbital launch services. Then of course there’s Agnikul Cosmos.
“Today, space is a destination,” says Ravichandran. His dream is that getting to space will eventually become a given for entrepreneurs, as mundane as hopping on a plane to New York City. Then it’ll be what you do there that counts.
“If we can make getting to space a very small entry barrier, I think I’ll be happy.”
So, you want in?
Even Ravichandran admits space is still tricky to get to. For investors, too, it can be just about as difficult to access.
Many of the players are private – so you can’t just buy their shares on a stock exchange.
There are a couple of startups that have become major regional players, though, and are now publicly traded. UAE-based Space42 is a major provider of AI-driven satellite services. Japan-based Astroscale focuses on cleaning up space junk, a crucial service in keeping Earth’s orbit safe.
Keep in mind the risks though. Space tech is an industry that gobbles up huge amounts of capital in R&D and operations, and many companies won’t make it. Just last year, three ventures–Virgin Orbit, SpaceRyde and Kleos Space–went under.
To help reduce that risk, you can look at space-focused ETFs, which hold a diversified basket of stocks and trades on a stock exchange. That way your money’s not tied to the fortunes of just one company.
Kalyshkin, a seasoned space investor, has his own advice for people considering taking the plunge. Research. Research. Then research some more.
Potential investors should read the reports, study the markets, take note of successful deals done by VCs in recent years, he says. The next step: joining online communities and events with other space investors and picking the brains of people who already have skin in the game.
“You need to do your homework,” he says. “And then start investing.”
Here’s the MONIIFY Playbook.
If you want to start investing in space for the first time look for:
- Satellite companies focused on solutions to improve life on earth.
- Space startups that have become successful regional players and are publicly traded.
- Space-focused ETFs for a lower-risk entry point into the market.
