Commercial Space Travel Too Risky For Venture Capitalists? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

Airborne Hi-Def On YouTube

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

Tue, Apr 15, 2008

Commercial Space Travel Too Risky For Venture Capitalists?

Analyst Says Several Companies Could Turn Profits Relatively Soon

There have been many parallels noted between the high-tech boom of the late 90s, and what many expect will be the coming boom in commercial space exploration and tourism. But so far, there's one big difference.

Investor's Business Daily reports the new era of commercial spaceflight has yet to attract meaningful participation by venture capital firms.

It's not for lack of promising business plans. George Whitesides, executive director of the National Space Society, notes "Space is not cheap... but if you look at the business models, some of these companies could be making money relatively quickly."

So far, the money driving the commercial space projects underway has come from veterans of the tech sector... no strangers to taking big risks, or in weathering setbacks.

Microsoft co-founder Paul Allen has $30 million invested in Scaled Composites, much of which came in to fund SpaceShipOne, the winner of the $10 million Ansari X-Prize. PayPal co-founder Elon Musk has more than $100 million of his personal fortune in Space Exploration Technologies, or SpaceX, which is building rockets for space travel.

Last year, Google announced the Google Lunar X Prize, offering $30 million in prize money for teams that successfully land a robot on the moon.

Peter Diamandis, chairman of the X Prize Foundation, says 10 teams have signed up so far, and another 10 likely will. He expects the 20 teams collectively will spend more than $400 million on the contest.

Guillermo Sohnlein, co-founder of Space Angels Network, which helps commercial space ventures find funding, observed the efficiency of the X Prize in moving the sector forward. "All they had to do was dangle $30 million dollars in prize money and they get maybe a half-billion dollars in innovation. Where else could you get that kind of return?"

Analysts agree that some successful headlines from private space companies could get the attention of venture capital firms, and start the money flowing soon.

Get their attention? Gee... if only there was some way to combine the excitement of kerosene-liquid-oxygen rockets with the proven model of NASCAR. Hmmm...

FMI: www.scaled.com, www.spacex.com, www.xprize.org

Advertisement

More News

Toledo Police Helicopter May Be Grounded

Department Seeks Grants To Help Keep Aircraft Flying The police department in Toledo, OH may be forced to ground its helicopter unless it is able to identify a grant for the $300,0>[...]

Bill Gordon Lost In Hudson River P-47 Ditching

Despite What Appeared To Be A Decent Ditching Effort, An Outstanding Pilot Was Lost The airshow community has suffered its second tragedy in nearly as many weeks as long-time warbi>[...]

Aero-News: Quote Of The Day (05.29.16)

"Putting the world's largest satellite constellation into orbit is an enormous task and Arianespace is ideally suited to launch the initial constellation, allowing OneWeb to start >[...]

ANN FAQ: How To Get YOUR News Out On Aero-News

Good News, Bad News... It's ALL News As the preeminent online aviation news resource out there, the editorial staff at Aero-News sees a large number of news releases. We look at al>[...]

Dubai-Based Business Jet Operator Enhances In-Flight Wi-Fi Services

Empire Aviation Group Selects Honeywell Technologies For Its Entire Fleet Honeywell has signed an agreement with Empire Aviation Group to provide its full suite of GoDirect connect>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC