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What is the rocket fuel that is going to allow for such growth? Money Talks Historically, government institutions were the piggy bank for R&D of all things space, but over the past 15 years globally private investment has grown tremendously in the space sector at a cumulative investment of $339.3 bn (51% in the US, 25% in China). Amongst private equity investments venture capital continues to lead the way in total investment accounting for approximately $14.7B in FY-2024. The overall reduction in peaks and valleys in Total Equity YoY change does provide a counterpoint to the bull case by suggested by SMEs at the WEF suggesting that money is tightening up and not as plentiful as perceived. This may be An important insight to note is that satellite technology is eating the lion's share of all investment, which aligns with reason number 2. It's a Bird. It's a Plane. It's a Satellite? Satellites are the super highway of data flow when it comes to space, so it comes to no ones surprise that satellites are creating opportunities. Technological advancements have been a major driver behind the increase in satellite deployments, particularly in the development of smaller, more efficient satellites. The miniaturization of satellites, such as CubeSats and nanosatellites, has revolutionized the industry by making it more cost-effective to build and launch these devices. These smaller satellites can perform many of the same functions as traditional, larger satellites but at a fraction of the cost, enabling more organizations, including startups and academic institutions, to participate in space exploration and data collection. Individual satellites have their benefits but scale is the mission, and there is nothing quite like a like a constellation when it comes to scale. Satellite Constellations projects are sprouting up all over the world, but it's a prodominently a horse race between China and the United States. SpaceX’s Starlink, launched in 2019, leads the pack with over 6,300 satellites in orbit and plans for up to 40,000, while Amazon’s Kuiper project aims to deploy over 7,000 satellites, with commercial launches starting in 2025. China is also making significant strides, with projects like the Qianfan constellation, targeting over 15,000 satellites by 2030, and Geespace planning nearly 6,000 satellites. In Europe, Eutelsat, bolstered by its acquisition of OneWeb, operates the second-largest fleet after SpaceX, and the EU is developing its sovereign Iris2 constellation, comprising 300 satellites. However, this rapid expansion raises critical concerns about space debris, collision risks, and light pollution, which could impact astronomical research and the sustainability of Earth’s orbit. Look for the Pickaxe Salesmen The past few years, we have seen the AI craze take over, and this is largely fueled by the availability of hardware that has enable rapid development of models. Chips have been the proverbial pickaxes to the AI gold rush. The same is true in the space industry with the increase in competition driving down costs. The costs for heavy launches in low-Earth orbit (LEO) have fallen from $65,000 per kilogram to $1,500 per kilogram. Principally this is a result of advancements in reusable rockets, simplification of vehicle designs, and scale up of production rates. Additionally,t he shift from government-dominated launch systems towards competitive commercial markets has played a crucial role. SpaceX, for example, has achieved cost efficiencies through vertical integration, a smaller workforce, and a commercial development philosphy of the philosophy of “test-early, fail-early, move fast and break things”. This contrasts with traditional government-funded programs, which often faced higher costs due to bureaucratic inefficiencies and political considerations. The military has embraced these lower costs to enhance space security, while NASA has been slower to adapt, particularly in human spaceflight planning. Overall, the decline in launch costs is expected to enable more robust and cost-effective space missions, benefiting commercial, military, and scientific sectors alike.