The Investor’s Guide to the Galaxy: Why the Space Industry Should Be Your Next Investment


By satellite archive photo.

The commercialization of the space industry has opened the door to mass innovation, research and development. Modern businesses are developing game-changing technologies that will be key to meeting the greatest challenges of the 21st century; climate change, connectivity, transport, etc. As a result, the global space economy — valued at $424 billion in 2020 – is expected to reach $1 trillion by 2040.

The current democratization of space and its subsequent economic growth make the space industry a prime opportunity for investors. Investors have always realized that the best investments are often those in disruptive industries and technologies because they have the greatest potential to create big impact and drive massive gains.

However, misconceptions persist about investing in space. The space industry needs open-minded investors to overcome these misconceptions and secure smart investments to secure the future of the industry.

A common misconception is that space is too theoretical and “out of this world”. This is, of course, in the literal sense, but when it comes to space business models, businesses in space should be understood through the same lens as those on Earth. The only variable is accessibility, but as noted earlier, start-up costs – the barrier to entry – are falling rapidly. Therefore, investors must apply the same mentality that they use to invest in businesses on Earth. Business models that work on Earth should work in space. Tourism business models are already being applied to the space, and manufacturing could likely follow. Software as a Service (SaaS) in the space is evolving just as the current SaaS industry has grown to keep pace with technological advancements in the field.

Another misconception about the space industry is that futuristic technologies are still far away, in the realm of science fiction. In reality, transformative technologies are already being developed and deployed, and entrepreneurship can further enhance this innovation. By partnering with space companies, investors can enable engineers to capitalize on modern technology to usher in an unprecedented era of economic expansion in space. Space is being misrepresented to society as a niche industry when it will have a significant impact on the global market due to its global reach. Advances in space will have a huge impact on civilization on Earth.

Investors should take their previous experience and knowledge of investing on Earth and apply it to potential investments in space. As in any growing industry, investors should seek companies with historical expertise and institutional knowledge. This experience is crucial in assessing whether a company has the ability to deliver on its promise.

In addition to this experience and knowledge, potential partners must demonstrate a genuine passion for their industry and their solutions. In a rapidly changing and transforming industry, it is important to work with people who are committed to success. A balance between dreaming big and thinking practically is ideal, and both ingredients are equally necessary. The corporate culture should reflect the industry as a whole: optimistic yet pragmatic.

Additionally, organizations that want to harness the power of space for the benefit of humanity and the planet itself are ideal. Space has the potential to address some of the most pressing challenges facing society, and those who wish to foster a prosperous future will have the best chance of success in an industry that encompasses our entire world.

Finally, it is important to keep in mind the larger infrastructure requirements for space. As the industry grows and additional space missions are conducted, there will be a parallel increase in the amount of data generated in space. This data will need to be stored, transported and processed to capitalize on its value. Increased activity in space, whether experimental or recreational, will require computational skills.

The space industry is complex, but that means it attracts some of the greatest minds on Earth to solve its challenges, making it an attractive industry for investors. The greater the challenge, the greater the potential gains, as no one can easily achieve the desired result. A growing number of people are recognizing these potential gains, as the last decade has seen phenomenal growth in the space ecosystem.

The growing number of new space ventures and the presence of large private companies in the space industry signal the impending explosion of what is sure to be a dynamic industry with significant implications for Earth’s economy. Once the common misconceptions are dispelled, it becomes clear that the right investment in this pioneering field can be invaluable to investors, businesses and society.

Avi Shabtai

Avi Shabtai is the CEO of Ramon.Space, a leader in space-resilient computing infrastructure. With extensive experience in business and technology leadership, from startups to publicly traded companies, his career spans various industries including wireless, data center, networking and space. Avi holds an MSc and BSc in Electrical Engineering from the Technion, Israel Institute of Technology and is an SMP graduate from the Technion Institute of Management.


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