From retail to space: Jeff Bezos will fly next month
“Ever since I was five years old, I’ve dreamed of traveling to space. On July 20th, I will take that journey with my brother. The greatest adventure, with my best friend,” Bezos announced on Instagram. He will join the first crewed spaceflight from his private rocket company just 15 days after stepping down as CEO of retail behemoth Amazon.
Blue Origin’s New Shepard rocket is designed to carry up to six tourists per flight, and in May, the company announced that it would auction off one seat to the highest bidder.
The Amazon founder will be the first of the “space billionaires” – entrepreneurs who are funding space industry innovations – to personally visit outer space.
Since founding Blue Origin in 2000, Bezos has allocated an estimated $7.5 billion of his own cash into the aerospace company. His dream flight is scheduled to cross the Kármán line, the internationally recognized border to outer space, more than 60 miles above the Earth’s surface, before making its descent.
Space tourism is a rapidly evolving industry supported by serious investors and a growing field of technological expertise.
Amid the COVID-19 crisis, the global market for space tourism estimated at $651 million in 2020, is projected to reach a revised size of $1.7 billion by 2027, growing at 15.2% over the period 2020-2027.
The market is driven by suborbital tourism, which will accelerate once Virgin Galactic and Blue Origin launches take place in 2021. While the high-visibility orbital space tourism market, where movie stars and wealthy individuals are paying over $55 million dollars for a ride, will rake in the highest tally cumulatively; a more low-key role – the parabolic flight tourism market – will offer zero-G rides to aficionados who dream of going to space, but do not have the money to pay for the trip.
“The space tourism & travel market continues, despite COVID-19 delays and decades of development,” states Dallas Kasaboski, NSR senior analyst. ‘Confidence in the technology has grown, especially after SpaceX’s commercial crew launches this year, but it will take some time for the market to truly begin to take off.”
Until now, space missions were primarily operated by space agencies. However, private sector involvement was vital for supplying hardware and expertise. As commercial satellite operators, and recently SpaceX and Blue Origin (supported by billions of investments from their owners) have become more active, the “high-cost barrier to entry” to operate missions has begun to lower. Specialists say that as missions become ongoing commercial operations, the sector is going to be stable and profitable for the next wave of investors.
Space as an investment theme is also likely to affect a number of industries beyond aerospace & defense, such as IT hardware and telecom sectors. Morgan Stanley estimates that satellite broadband will represent 50% of the projected growth of the global space economy by 2040, and as much as 70% in the most bullish scenario. Launching satellites that offer broadband Internet service will help to drive down the cost of data, just as demand for that data explodes.
The largest opportunity comes from providing Internet access to under- and unserved parts of the world, but there is also going to be increased demand for bandwidth from autonomous cars, the Internet of things, artificial intelligence, virtual reality, and video.
All these advances are creating amazing opportunities for investors. However, you have to know what you are doing or work with the right fund advising you.
“We believe that the private market is the best space for investors right now,” says Kris Bort, founding partner of Sakal Ventures. “Our approach is to buy best-in-breed companies in disruptive sectors. We purchase every security for cash and employ zero leverage. The private market has been transformed over the past decade. Private companies can receive proper financing without the public markets. This allows companies to come public at the right time. We see so much opportunity here, because most investors do not have access to invest in the private market or the ability to research these companies.”
You have a chance to connect with the founder or head of capital development at this venture capital fund. Take this opportunity to talk to some of the brightest minds and best investors in the late-stage private space: visionaries, MIT and NYU Stern School of Business graduates. Book a FREE CONSULTATION with Sakal Ventures.