Investment frontiers

Space is often referred to as the “final investment frontier”. However, as space is infinite, lumping it all together as a single opportunity or a single challenge is misleading. Space is rather a series of frontiers – from the Earth’s orbit, to the Moon, asteroids and beyond. Each of these frontiers is unique, and from the investment perspective has its own potential, horizon and risk-return profile. The general rule - the further frontier lies from the Earth, the longer its commercial development will take. NewSpace Capital focuses on what we call “Frontier I” – the Earth and its orbits.

Distance: 0 to 36,000 km
Investment horizon: 3 – 5 YEARS

Frontier I – Earth & Orbit

Frontier I is home to 7+ billion consumers and a €75+ trillion market. The €310+ billion space industry currently enables ~14% percent of the global economy. And the industry is expected to reach €2 trillion by mid of the century, as commercial development of Lower Earth Orbit (LEO) drives our society and economy through a structural change powered by the space-enabled applications. The seven-fold growth of the space industry is the biggest investment opportunity in our galaxy.

Distance: 384,400 km
Investment horizon: 10 – 15 YEARS

Frontier II – Moon

The Moon is an important stepping stone towards further exploration and utilization of space’s resources. It provides a low-gravity base closer to the asteroid belt, as well as resources (such as water) for the deep space missions. Moon exploration is a priority focus for governments and space agencies and is gradually becoming interesting from a commercial standpoint.

Distance: 380,000 to 45,000,000 km
Investment horizon: 15 – 20 YEARS

Frontier III – Asteroids

Asteroids contain a wide range of resources, including platinum-group metals, nickel-iron and silicate minerals, as well as trapped or frozen gasses, and water, which could be utilised for propulsion fuel. As the demand for the mineral resources on Earth is growing ever higher, the quality of ore is decreasing, the advances in space technology can soon enable commercially viable extraction of minerals to satisfy demand on Earth and to enable further space exploration.

Distance: 225,000,000 km
Investment horizon: 20 – 25 YEARS

Frontier IV – Mars

Mars is unique in that it has the resources required to support a sufficiently sized population, which may lead to another branch of human civilization in the solar system. Although Mars may lack materials that are directly exportable to Earth, its orbital elements and other physical parameters give a unique positional advantage that may allow it to support mining activities in the asteroid belt and elsewhere in the solar system.

The 60-year-old space industry has been transformed in the last decade by improved access to space, emergence of satellite platforms for Lower Earth Orbit, miniaturization of electronics, changing regulatory environment and growing demand for commercial and consumer applications. The global space industry now spans across multiple markets on Earth and beyond, becoming a key positive element in the technological and economic transformation of our society.

Investment frontiers

Market segments