Making  the  Business  Case  for  Sustainable  Space  Enterprise  

Eva-­‐Jane  Lark  Waikoloa,  November  2014  

•  Making  the  Business  Case  – Company/OrganizaHon  – Concept  – Business  Plan  

•  “Sustainable”  Space  Enterprise  •  Giant  Leaps  vs  Small  AcceleraHng  Steps  •  ObservaHons  from  an  Investment  PerspecHve  

•  Thoughts  on  The  Emerging  “Cis-­‐Lunar  Space”  Economy  

Making  the  Business  Case  

•  What  does  this  mean?  •  Business  Case  Closing  for  an  Actual    Business  

vs  •  Business  Case  Closing  for  a  Concept  •  Business  Plan  –  Making  the  Case  

Sustainable  Space  Enterprise  •  Words/Language  CriHcal  •  Sustainable  vs  Growing  Momentum,  AcceleraHng  or  ExponenHal  Growth  

•  Commercial  ParHcipaHon  CriHcal  •  Sustainable  

– Environmental  Issues  could  eventually  help  make  business  case  for  some  concepts  

Giant  Leaps  

•  Goal?  Or  Result?  •  Energy  Expenditure  •  Investor  Leaps  of  Faith  •  Ecosystem  and  Re-­‐usability  •  R  &  D  Enabling  Technologies  •  Our  Moon  vs  Mars  

Pre-Leap

•  Series of small, accelerating steps precede successful “Leaps”

•  “Leaps” versus “Bridges” •  Motivations and Drivers •  Enabling Environment including Legal

Regime and Government Incentives

Initial Steps •  Inexpensive, reliable ACCESS

to Space IS still the Deal Breaker

•  Most Business Plans ASSUME this is available and are contingent upon it

•  Elon pre-SpaceX ideas •  Recent Setbacks •  The Moon

Business Plans  “I have always found that plans are useless,

but planning is indispensable” Dwight D. Eisenhower

•  Solution to a Problem •  Value Proposition •  Current Reality •  Market Analysis vs Action Plan •  Assumptions •  Milestones and Future Cash Needs •  Insight into real competition •  Dual use technologies/other applications

l  Depends on the Investor/Soft Science l  What’s In It For Me? l  Business Plans l  Assumptions and Foundations l  Risk Factors of the Business* and Mitigation l  Markets l  Competition l  What else is enabling by this? l  Other Alternatives* l  Time Horizon*, Liquidity Concerns*, Exit Strategy* l  Passion and Practicality l  Approach to Investor

What Criteria Influence Investors’ Decisions?

Industry  IS  Being  Observed  “The  secret  to  success  in  any  sector  is  watchfulness,  

usually  over  a  period  of  many  years.”      “Virgin’s  sudden  emergence  as  a  leader  in  cu=ng-­‐edge  technologies  was  decades  in  the  making”.    

Richard  Branson  

l PTMSS/CIM  2013  l Excitement  l Unique  OpportuniHes  l First  to  Market/  First  Mover  Advantage  

Risk  MiHgaHon  

•  Private/public  partnerships  •  Government  IncenHves  

– R&D  Financing  – SBIRs  – LocaHon  

•  MulHple  Investors  •  MulHple  Markets  •  Tax  credits  

Emerging  “Cis-­‐Lunar”  Space  Economy  

•  Importance  of  Ecosystem  Development  •  Solving  the  li\le  problems  

If  we  are  going  to  Space  to  stay,  Space  has  to  pay.    

•  What  sHll  needs  to  be  created  •  The  ``Right  Stuff``  vs  Open  Architecture/Inclusivity  

If  not  us  (me),  then  whom?    If  not  now,  then  when?    John  E  Lewis    

THANK  YOU!!!  MAHALO!  

   

   

     

Any  QuesHons?