A SpaceX rocket launch / Photo credit: Unsplash
Singapore is not the first place that comes to mind when people think of the space industry. But an increasing number of spacetech startups are planting its flag there – from companies building low-cost rockets to tech teams innovating in telecommunications, blockchain tech, and more.
Government support is growing and foreign companies are also setting up shop in the island nation to take advantage of the impending groundswell.
As a new industry, however, it faces challenges. Talent can be hard to find, and cautious investors hesitate to back space startups because they take longer to build a functioning product compared to software companies.
But the opportunity seems to be there. Morgan Stanley values the global space industry at US$350 billion and predicts this figure will skyrocket US$1.1 trillion by 2040.
This growth is partly driven by large private space ventures like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin. But it also has to do with the ever-lower barriers to entry for entrepreneurs building technology like satellites and drones. Dropping component costs, easier access to manufacturing, and a market that promises a wealth of use cases and applications are attracting more founders and investors.
Investors aiming for the stars
Dr. Bidushi Bhattacharya, a former NASA rocket scientist, has established Bhattacharya Space Enterprises (BSE) in Singapore. The company is fostering a spacetech ecosystem through science projects, training workshops, and community building.
She also started Astropreneurs Hub, an incubator aiming to help spacetech startups get off the ground and launch their prototypes – something that should make them more attractive to investors. “I think VCs will be much more comfortable coming in when you have flight heritage,” she explains.
The investment community in Asia Pacific lacks a lot of space experience but it’s getting better.
Bhattacharya arrived in Singapore in 2014 after two decades of working in the aerospace industry and has been instrumental in growing the local market. “2018 is a very different picture than even a year ago,” she tells Tech in Asia.
For one, the Singapore government is a lot more enthusiastic about the sector. Local and foreign companies are getting support from the Economic Development Board and SPRING Singapore, while SGInnovate invests in deep-tech startups and frequently organizes spacetech-related events that draw in founders and investors.
Venture capital firms are also taking notice. For instance, 500 Startups has backed rocket builder Gilmour Space Technologies (GST). Space debris startup Astroscale has raised US$53 million in total from investors including Taizo Son’s Mistletoe.
“I had to walk [our investors] through the technology, our business plan, our customer market,” GST founder and CEO Adam Gilmour says. Gilmour is developing a proprietary hybrid fuel to power rockets that can transport small satellites in orbit cheaply and efficiently. Its first suborbital rocket is slated to launch in 2019.
“Once we got our message across, it was worth the effort. The investment community in Asia Pacific lacks a lot of space experience and is gun-shy, but it’s getting better,” he adds.
Head in the clouds, feet on the ground
Singapore shows promise for space
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