I made a stop into Gotham recently for the  2009 Space Business Forum presented by The Space Foundation in association with Toffler Associates (a strategic consulting firm).

After a networking break fast, the day started welcome remarks by Hoyt Davidson Managing Memnber of Near Earth, LLC who specializes in telecom, satellite and media investment banking and Lon Levin, President of SkySeven ventures which works with, helps manage, and invests in new technology companies, particularly space-based businesses. Levin notably was a co-founder of XM Satellite Radio.

The opening Keynote was given by Tom Hendricks, President of Aviation Week who emphasized how large and wide the space industry is.

Highlights from Tom’s Keynote:

  • ” Space business is growing and prospering.”
  • The U.S. Space Industry employs more than 262,00 people.
  • 2007 revenues were $251 Billion and in 2008 revenues were $257 billion. Slower growth is expected between 2009-2010 but growth is still expected in weak economy.

First panel of day

Sector Performance, Trends, and Expectations

With more than 70 percent of global space revenues now generated by the commercial space sector, understanding how space sectors are differentiated and what trends and expectations characterize the sectors is key to analyzing, rating and forecasting what’s ahead for established players, new ventures and entrepreneurs alike.

Moderator:

Panelists:

  • Mr. Andrew D. Africk, Senior Partner, Apollo Management, L.P.
  • Ms. Heidi Wood, Managing Director and Senior Equity Analyst, Aerospace, Defense and Defense Electronics, Morgan Stanley


Highlights from pane which was mostly focused on satellite companies but there was reference made to ‘New Space’ efforts.

  • Wood said that Aerospace is traditionally a long cycle business.
  • Potential  upside on NASA related to Obama administration.
  • “Wall Street interested in new ideas, sizzle.”
  • Early stage (space) companies are not yet ready for public markets.
  • Need innovators. Roots and learning curve need to be more embedded.
  • One purpose of this forum is to educate NYC finance about space.
  • Communication Satellite sector currently has most investor comfort followed by mobile satellite and then more satellite integration services.
  • Communication (satellite) market is a volume based business
  • Financing New Space deals will still be challenging until revenue models become predictable.

Key Question regarding if space is yet big enough to attract retail investors and if not, what does the industry need to do?

For space to have broad based, retail investors, space industry needs to do  the following:

  • Do a better job at making the esoteric understandable.
  • Become  more mainstream (i.e.Apple’s Ipod).
  • Creation of direct applications that would excite the markets.

Second panel of day

Moderator:

Panelists:

Highlights:

  • Space will become more and more an integral part of the next generation.
  • Space could connect emerging economies.
  • High speed Internet access, teleeducatiaon, telemedicine enabled by space assets.
  • Leveraging space so that we and our businesses can operate more efficiently.
  • Obama Administation has begun space policy review.

Featured Speaker

Mr. Thomas B. Pickens III, President and Chief Executive Officer, Astrotech Corporation

Highlights

  • Saving Lives on Earth by developing products in space
  • Astrogenix is an International Space Station National Lab Pathfinder bsuiness which gives it access to the Space Station.
  • Astrotech has studied over 2000 space manufacturing experiments to see what does and does not work; Salmonella vaccine target identified; researching MRSA.
  • Vaccines could cost less to develop in space.
  • Sub-orbital vehicle systems could be used for short term micro-gravity experiments in such areas as  metallurgy.

I was unable to stay for the afternoon session but there is an excellent newsletter available for down from our friends at Near Earth,LLC available here (From the Ground Up, June 2009).

Afternoon sessions See Near Earth LLC newsletter available the link above for highlights.

New Space Comes of Age
No longer the strictly the province of traditional corporate giants, “new space companies” are finding their space technology and business successes. This panel draws together some of the most notable of the new crop of companies who are changing the face and the practices of the space market.

Panelists:


The Business of Space Tourism

Two high profile space travel business experts will discuss the financial opportunities of private space travel. This lucrative industry is already an almost $40 million business with the potential to increase more than 10-fold in the near future.

  • Mr. Richard Garriott, Entrepreneur, Famed Video Game Developer, and Private Space Explorer
  • Mr. Tom Shelley, Vice President of Marketing, Space Adventures, Ltd.

Featured Speaker – View from the Publically Traded

Government Acquisition – Where Are Dollars Flowing for Space?

Reprising one of last year’s most popular panel discussions, some of the largest government procurers of space systems, services and hardware take a look ahead at which space business opportunities will command the attention and shape future business opportunities for the traditional aerospace sector in years to come.

Moderator:

Panelists:

  • Mr. Ken Davidian, EFP Program Lead, Federal Aviation Administration, Office of Commercial Space Transportation
  • Mr. Alan Ladwig, Senior Advisor, NASA Headquarters
  • Mr. Gary E. Payton, Deputy Under Secretary of the Air Force for Space Programs
  • Ms. Maureen Wylie, Chief Financial Officer, National Oceanic Atmospheric Administration


I’d recommend this forum to those who want a broad overview of financial issues related to the broader space market including but not limited to New Space, Satellite, and government involvement. Let’s hope the excitement and interests builds for this and similar events, so that space can be seen less as a black  unknowable void and more as an potential enabler of  new wealth creation here for us down on Earth.