Summary of "The Space Industry in 2024, and How to Build a Satellite Company" Episode of ACQ2 by Acquired

Release Date: May 24, 2024
Hosts: Ben Gilbert and Austin Link (Guest)

Introduction

In this episode of ACQ2 by Acquired, host Ben Gilbert takes the reins solo as his co-host, David Rosenthal, is on paternity leave. Ben welcomes Austin Link, co-founder of Starfish Space, to discuss the current landscape and future prospects of the space industry. The conversation delves into the economic activities in space, the evolution of satellite technology, launch capabilities, and the innovative approaches of new space companies like Starfish Space.

The Current Space Ecosystem

Austin Link provides a comprehensive overview of the space ecosystem, highlighting both commercial and governmental activities. He categorizes the value derived from space into:

• Commercial Services: Including satellite TV, radio, and especially satellite internet, with SpaceX’s Starlink being a prominent example.
• Government Support: Services that support entities like NASA and the newly established Space Force.
• Scientific and Unquantifiable Benefits: Such as the James Webb Telescope and other scientific missions that offer unique insights from space.

Austin Link [03:40]: "There is both commercial value and that's something that folks are increasingly exploring today with the commercial space industry."

Satellite Orbits and Their Significance

The discussion moves to the different types of satellite orbits and their respective uses:

• Geostationary Orbit (GEO): Approximately 600 satellites, typically large and expensive, providing services like communications and weather monitoring. Located about six times Earth's radius away.

  Austin Link [09:03]: "There are on the order of 5,600 satellites in geostationary orbit."

• Low Earth Orbit (LEO): Around 6,700 satellites, largely consisting of small, affordable satellites forming large constellations (e.g., Starlink, OneWeb) for broadband internet and other applications. Positioned approximately 700 kilometers above Earth’s surface.

  Austin Link [10:18]: "A lot of times, you're running a constellation with a network of 100 or 1,000 satellites."

• Medium Earth Orbit (MEO): Houses essential constellations like GPS and Galileo, which are foundational to modern infrastructure and daily life.

Market Size and Projections

Austin Link discusses the economic scale of the space industry, projecting it to become a trillion-dollar marketplace by the 2030s. This growth is fueled by increasing satellite deployments, advancements in technology, and heightened investments from both commercial and governmental sectors.

Launch Capacity and Providers

A significant portion of the conversation centers on launch capabilities:

• SpaceX Dominance: With over 96 launches in the previous year and a regular cadence of transporter missions every four months, SpaceX has revolutionized access to space. These missions often carry dozens of satellites from multiple customers simultaneously.

  Austin Link [13:36]: "They send up several dozen satellites on any given transporter mission."

• Other Launch Providers: Including Rocket Lab, Firefly, and international entities like the Indian Space Agency, contributing to a more competitive and accessible launch environment.

Evolution from Old Space to New Space

Reflecting on the last 10-15 years, Austin Link contrasts "old space" with "new space":

• Old Space: Dominated by NASA and large prime contractors like Lockheed Martin and Boeing, operating with a traditional, slower-moving approach.

• New Space: Characterized by agility and commercial focus, with companies like SpaceX, Blue Origin, Planet, Rocket Lab, and Starfish Space introducing innovative business models and technologies that accelerate progress and reduce costs.

  Austin Link [15:22]: "There are a lot of awesome success stories to look to, like Planet or Rocket Lab or Spire or Black sky here in the Seattle area."

Starfish Space: Pioneering Satellite Servicing

Austin Link elaborates on Starfish Space’s mission to revolutionize satellite servicing:

• Core Product: An autonomous spacecraft resembling a mini fridge, equipped with electric propulsion and electrostatic docking capabilities.

  Austin Link [22:41]: "We are using... a much more software capable, but a much less hardware, complex vehicle."

• Functionality: The spacecraft can extend the operational life of existing satellites or safely deorbit them, providing significant economic value by reducing space debris and maximizing satellite utility.

  Austin Link [24:43]: "For satellites that are in space, there's a part of you that is going... is there a useful value proposition here in the services that we provide?"

Technical Innovations and Cost Reductions

Starfish Space achieves cost efficiency by emphasizing software over hardware:

• Electric Propulsion: Utilizes ionized xenon particles for propulsion, achieving high momentum exchange with minimal mass. This reduces the need for multiple thrusters, lowering mass and cost.

  Austin Link [27:37]: "We can do transactions with as close to real life physics as possible."

• Guidance, Navigation, and Control (GNC): Advanced autonomous software manages the complex maneuvers required for satellite docking, ensuring precision and safety with minimal hardware.

Austin Link [26:21]: "We solve problems with software instead of hardware."

Government vs. Commercial Customers

Austin Link discusses the dynamics of serving different customer bases:

• Government Contracts: Essential for funding and credibility. Starfish Space’s selection for the STRATFI contracting program with the Air Force exemplifies the importance of government partnerships.

  Austin Link [53:44]: "Having the US Government as a customer and allied governments as a customer is really key in the space industry."

• Commercial Customers: Provide diverse opportunities and often involve quicker decision-making processes compared to governmental counterparts.

Challenges in the Space Industry

Despite advancements, the industry faces several bottlenecks:

• Time Constraints: Long lead times for component orders (up to 12 months) and scheduling launches can delay missions.

  Austin Link [70:37]: "There are a lot of components that we order that have 12 month lead times."

• Regulatory Hurdles: Navigating approvals from bodies like the FCC adds complexity and time to launching satellites.

• Supply Chain Limitations: Ensuring a steady supply of components and establishing deep liquid markets for suppliers are ongoing challenges.

Advice for Entrepreneurs in Hard Tech

Austin Link offers valuable insights for startups in the hard tech sector:

1. De-risking Early: Engage in real-world testing, such as sending demonstration satellites, to validate technologies and build customer confidence.

2. Deep Customer Engagement: Establish strong relationships with customers early on to refine product offerings and ensure market fit.

3. Efficient Operations: Maintain economic incentives to operate efficiently, especially when dealing with large contracts that could influence company direction.

4. Leverage Relationships: Building and nurturing relationships is crucial due to the high-stakes nature of space missions.

Austin Link [61:07]: "You have to find ways to de risk along the journey to that end point."

Future Prospects: Vision for 2044

Austin Link envisions a future where Starfish Space plays a pivotal role in expanding human capabilities in space:

• Autonomous Robotics: Enabling the construction and maintenance of expansive space infrastructures, such as large telescopes and resource extraction systems.

• Resource Utilization: Extracting rare materials from celestial bodies like the Moon to support Earth’s needs, thereby increasing economic value.

• Human Expansion: Facilitating human exploration and establishment of permanent bases on the Moon and other celestial bodies.

Austin Link [76:02]: "Humans can visit other objects in the solar system and find resources that are uncommon here on Earth..."

Conclusion

This episode of ACQ2 offers a deep dive into the evolving space industry, emphasizing the transformative impact of new space companies like Starfish Space. Through technological innovation, strategic partnerships, and overcoming significant industry challenges, the space ecosystem is poised for unprecedented growth and economic value in the coming decades. Austin Link’s insights provide a roadmap for entrepreneurs and stakeholders aiming to navigate and contribute to this dynamic field.

Notable Quotes

• Ben Gilbert [01:22]: "People ask me what I like about Starfish and my first answer is usually that board meetings are about 40% physics lessons and then we have to do a bunch of approvals."

• Austin Link [03:40]: "There is both commercial value and that's something that folks are increasingly exploring today with the commercial space industry."

• Austin Link [09:03]: "There are on the order of 5,600 satellites in geostationary orbit."

• Austin Link [22:41]: "We are using... a much more software capable, but a much less hardware, complex vehicle."

• Austin Link [26:21]: "We solve problems with software instead of hardware."

• Austin Link [53:44]: "Having the US Government as a customer and allied governments as a customer is really key in the space industry."

• Austin Link [61:07]: "You have to find ways to de risk along the journey to that end point."

• Austin Link [76:02]: "Humans can visit other objects in the solar system and find resources that are uncommon here on Earth..."

This detailed summary encapsulates the key discussions, insights, and forward-looking statements made during the episode, providing a comprehensive overview for listeners and those interested in the rapidly evolving space industry.