The venture-backed rocket industry is in a state of flux with many companies shifting their focus toward a more real-world approach. Following their meteoric rise to success over the past few years, companies such as SpaceX and Blue Origin are now looking to become less reliant on private investments and embrace sustainability as they look to become more viable long-term businesses.
In recent years, venture capital investors have poured millions into the promising rocket industry in hopes of riding the wave of space exploration. SpaceX, Blue Origin, and other companies have seen an influx of investment, with some venture capitalists going as far as to label the industry as the “next big thing”. However, in recent months the industry has started to show signs of a slowdown.
The reason for the decreased investment in space exploration businesses is due to the realisation that profitability and sustainability may be more difficult to achieve than companies originally anticipated. Not only are rocket and spacecraft launches expensive, but many companies have also been struggling with how to monetise and make money from these services. Some companies are instead focusing on non-profit space operations, such as helping to deliver packages, and services to station satellites in Earth’s orbit instead of aiming for extra-terrestrial ventures.
Furthermore, many of these new companies face competition from established players in the aerospace industry such as Airbus and Boeing who have more access to government contracts and other sources of revenue. This means that for most venture-backed startups, profitability is a distant dream and their goal is simply to survive.
While the venture-backed space industry may have cooled off in recent times, there is still plenty of potential for the industry to thrive. Companies must focus on finding ways to monetise their services and become sustainable long-term enterprises. Furthermore they should look to partner with larger established companies in the aerospace industry to leverage their existing capabilities. If these companies can achieve this, their potential is still great, and the venture industry will once again take to the skies and soar.
