Starburst Accelerator lands in Singapore to help aerospace startups fly

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The aerospace sector is the latest one to be introduced to the nimbleness and innovation that are a startup’s signature elements. As new technologies like drones, internet of things (IoT), and data analytics bring their impact to this massive industry, it’s only natural that there are people whose mission is to connect startups with large corporations and agencies in that space, from Airbus and Boeing to NASA.

Starburst Accelerator was started in Paris in 2012 by former Airbus electrical engineer and aerospace strategy consultant Francois Chopard. Business development consultant Vandad Espahbodi joined him there to build up an avenue for corporates to meet smaller entrepreneurs.

Starburst now has offices in Los Angeles and Munich. Its latest stop is Singapore.

A ‘Shark Tank’ for aerospace

The accelerator follows a different model than other programs, in that corporations pay it an annual fee so it can source and incubate promising companies. When the accelerator identifies such businesses, it helps them scale on behalf of the industry that is looking for new ideas.

Starburst then organizes pitching events showcasing the startups. “We’ve been referred to as a sort of Shark Tank for aerospace,” Van tells Tech in Asia. “Instead of having five multi-millionaires, it’s 150 to 200 industry leaders, half from the corporate side, a quarter from the investment side, and a quarter from what we refer to as public research – labs, economic development boards, and so on.”

Corporations pay Starburst an annual fee so it can source and incubate promising companies.

Besides facilitating contact between small businesses and corporates, Starburst also provides inroads for investors who want to come into this space. “There are a lot of stereotypes in the aerospace industry – sales cycles take too long, things are too slow-moving, it’s impossible for things to happen,” Van says.

So Starburst helps filter out a lot of the noise for investors. “We can tell them what the industry is looking for, or at least provide an assessment – so if you’re a VC looking for more radical ideas, this is what the industry thinks about this idea right now,” he adds.

The accelerator hasn’t been investing in startups itself so far, but that will change with the establishment of its own venture capital fund, which will be completed before the end of the year.

It has also piqued the interest of private equity players who can provide more value to its startups. “Those that are very experienced in mergers and acquisitions in the aerospace and defense industry want to treat us as a possible vehicle for investments in some of those businesses, and using the data we’ve accrued to justify those investments,” Van says.

The opportunity in Asia

Singapore is going to be a center of operations for Starburst in Asia, as it looks to familiarize itself with the ecosystem both in the country and the region. “A lot of [Asian] hubs like Japan, India, even the Philippines, have businesses that need this kind of exposure,” Van says. “Here in Singapore it’s been a fun conversation with some of the local industry. We have to make sure we nuance what we offer here, reflect on the fluidity of venture capital in Singapore specifically, and tap a lot of the talent coming out of university.”

The accelerator will launch its own venture capital fund before the end of the year.

Starburst’s Singapore operation is headed by Alvin Chan, who was previously working with Singapore’s SPRING business development agency.

Launching in Singapore