As Bessemer Venture Partners decided to invest in a captivating start up way back in 2010, which have built and started up a network of small satellites for as less as of the fraction of the typical cost usually takes place.
After a period of four years, that small satellite and remote imaging company, Skybox Imaging, was then purchased by Google for $500 million in cash. The company was renamed as Terra Bella, has developed to launch seven satellites into orbit.
Terra Bella’s lucrative way out, which featured with the well-publicized development of SpaceX, not only helped to spur increased investments in space and space-related start ups by top venture capital firms better but known for their support of technological companies like Yelp, LinkedIn and Jawbone as through with gateway on growth that pulled up in a variety of platforms.
“When we have seen that Google, a mainstream technology company by the surprise of having the interest in space, which was a big step to realize that space is currently important to a lot of companies,” said Sunil Nagaraj, Vice president at Silicon Valley based Bessemer.
However, SpaceX Chief Executive Elon Musk made clear that he’s interested to spend billions to establish a base on Mars as an intriguing factor for us to know as such these VCs have more down to earth ambitions.
“Well, it not only of passion projects or philanthropists”, continued saying Nagaraj alongside he also mentioned that “we are there to make money, and we are in actual watching what happens.”
In 2015 alone or singularly the most happening year making as more than 50 venture capital firms to invest in space or space related companies, the highest number in the past 15 years was as surveyed by consultant Tauri Group, which has been tracking the data.
The amount as much as $1.8 billion been invested in space companies last year also was a very high figure, although that might mostly be a sign of two big investments ala $1-billion stake in SpaceX by Google and Fidelity Investments, and $500 million in satellite assemblage firm OneWeb by a group of investors are mind blowing.
Even if without these two deals, venture capital investments in space reached $300 million in 2015, a major increase from $94.3 million in 2014, which speaks volumes about the latest ventures.
Venture capital on an overall gain flushed with money seeking decent returns in a low yielding World. U.S. venture funds raised a total $32 billion from January onwards through till September, almost as much as in all of 2015 and a record breaking achievement, according to the National Venture Capital Association.
As much as of the interest in the space sector at present for small satellite start ups, which captured images of the Earth and by data analytics companies that rely on feeds from small satellites on the whole to move ahead.
And the data is valuable to industries such as agriculture, energy and forestry, according to venture capitalists and industry experts’ repertoire.
“You have the confluence of privatization of the space sector, minimal costs of the space sector versus the past, and these large venture funds that look to create opportunities to deploy capital,” said Robert Siegel, a lecturer in management at Stanford University and Partner at XSeed Capital.
Advancements in technology such as in batteries and the efficiency of processors have allowed satellites to shrink dramatically. Well, this could take the advantages as they come over such advancements above all in technology.
While in the 1990s and even until today, satellites could be made as large as a school bus, for example. Now that, they are sized like a mini-fridge, or even a shoebox for interpreting to discuss in a lively way, while taking total care to unleash what’s happening today.
“Earth observation deals in your needed capabilities for very big satellites,” as such according to Sven Strohband, partner and chief technology officer at Khosla Ventures, where in they already invested in Skybox, Los Angeles based Rocket Lab and agricultural data firm Climate Corp that was acquired by Monsanto Company, in 2013 for $930 million. “You can do an astonishing amount of work with a smaller satellite as well.” He held a relief of breathtaking valuable suggestion to assert this in such a smart way.
Smaller sizes in the sense are of cheaper manufacturing costs, which allowed companies like Terra Bella and the San Francisco based Earth imaging firm Planet to launch so-called satellite assemblage that just in case ensure that one or two failures won’t knock out remote sensing or Earth observation abilities to make up with what needs to get out of the trouble of trouble shooting for such investments will never cause any disarray.
Building a shoebox sized satellite can cost between $100,000 and $300,000, as it was continued of the sayings of Nagaraj of Bessemer, who is a pioneer in such projects’ know how.
“It might cost about as much to launch an app as it does to make and launch a satellite,” he however, also claimed that: “We have reduced the cost of entry to start tinkering.”
The firm as reported invested of about more than $50 million across three space companies Skybox, Rocket Lab and small satellite maker Spire.
Venture capitalists represent that these new satellite assemblage are more successful than those envisioned in the 1990s that were intended to provide telecommunications coverage across the World, which speaks that actually there are many reasons to go ahead with this ventures.
And it is a known fact that communications networks cannot offer complete service with just one satellite, those assemblage an “all or nothing proposition,” further Nagaraj added.
However, with remote sensing or Earth observation satellites, “you can derive value starting with satellite No. 1,” he also quoted as saying.
Nagaraj and Strohband conclusively appreciated on a high note that they see one to three space related pitches every week.
“There seems to be a new attraction to this because it is technologically possible and there is some early proof indications that the economics can also be boosted,” Strohband, finally disclosed that. “I think that will work to continue for more than a little while.”
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