Billionaire entrepreneurs using their wealth to launch successful space companies have made the industry much more accessible to small start-ups.
The reliability of space launches by Richard Branson, Jeff Bezos and Elon Musk, in part thanks to their extensive financial support, has driven down insurance prices for small businesses in the sector.
“What the entrepreneurs have done … is completely change the space economy,” Robert Desborough, managing partner of Seraphim Space, told City AM, which means companies can build “mega -constellations “of satellites to solve the problems of navigation, telecommunications and climate change.
âA lot of people criticize the Bezos and Musks for being extravagant. But they have helped drastically reduce start-up costs and insurance costs, âAnthony Baker, founder and CEO of London-based Satellite Vu, also told City AM.
After spending some $ 50,000 for launches, Musk – who struck a $ 2.9 billion deal with NASA earlier this year – brought that number down to around $ 5,000, Baker said.
âWhether it’s good or bad with what they do in their spare timeâ¦ the payoffs are great for small businesses.
âHe’s pretty damn reliable. When i was planning [launches], you had to assume that you lost 1 in 10 satellites. I paid a 25 percent insurance premium on an entire project just because of the risk of things going wrong. Now it’s single digits, as Elon’s satellites rarely, rarely, rarely fail. “