Why does space need a government? And how to make money on space for a private investor
More than 60 years have passed since the distant 1957 year of sending the first satellite, and then 1961 year of sending a man into space. Since that moment, not only the technologies for launching a payload into Earth orbit have been improved, but also the methods of financing the development of these technologies. With the advent of SpaceX, private astronautics ceased to be something unrealistic, private capital was able to accumulate sufficient capital to create new technologies. I remember how in 2014 many experts said that landing the first stages and making them reusable would be absolutely not cost-effective, but after 2 years in April 2016, SpaceX landed the first stage, and a month later repeated its success. Since that time, the era of private capital has begun for space, at least for its American part.
The year is 2021, private companies, along with state ones, are developing promising models for putting a payload into orbit, prototypes of lunar and Martian bases are being built, experimental satellites are being designed for mining on asteroids. A huge proportion of new projects are being developed by private companies, the basis of which are large financial giants, or private investments of the largest businessmen of the planet: Jeff Bezos, Richard Branson and of course the discoverer of private space, Elon Musk. Thanks to their investments in the development of space technologies, humanity has accelerated its development in achieving space as a mass phenomenon.
Their investments prove that a private investor can not only work on an equal level in this capital-intensive industry, but also be a much more effective manager of the most high-tech sector of the world economy. And the growth of this industry will grow exponentially in the coming years. Analysts predict an increase in the cost of the space industry to $1.4 trillion by 2030.
From the point of view of a private investor who considers investments in the space industry as a highly profitable part of the economy, there is one significant problem: there are practically no companies that have been represented on the stock market engaged in the development of space technologies.
There are Space, Rocket Lab, which are available on investment rounds that are not available to a wide range of people, and Virgin Galactic, which has grown by more than 500% since its listing on the NYSE. Becoming one of the most discussed promotions of 2021 on all specialized information aggregators.
So why are even more companies not entering the stock market for private investment? The first is the state’s monopoly on space in such countries as Russia, China, and the EU countries. But if you look at the graph below, countries with a state monopoly on space launches are significantly behind the United States, which has long given most of this part of the economy to private hands.
The second is a large input receipt, with a long period of return on investment.
And the third is the lack of proper expertise in the process of selecting an investment object.
In the future, blockchain and decentralized finance will be one of the tools that will allow us to move the state monopoly a little aside in investing in areas of the economy that are closed to private capital. Defi, can allow you to create platforms for accumulating significant amounts invested in projects with a proper share of expertise, which will be paid for by the platform itself.
The first such platform should be Open Galaxy, which aims to make investments in companies related to space development at the early stages of the existence of such companies available to everyone. This will give an impetus to the development of both fundamental and practical developments, while the platform itself will give access to a huge amount of small capital of private investors, to companies standing on the cutting edge of science and technological progress.
Such a decentralized distribution of the financial investment flow will allow developer companies to speed up work on their product, and frequent investors to earn money on investments in the space industry. The most important thing for them is the choice of companies, and providing an investor with a mechanism for exiting investments. Open Galaxy, through smart contracts, accumulates, acquires, sells and redistributes back to investors a share in the company of the developer of a particular space technology.
If today for many, space sounds like a distant word from science fiction films, then thanks to Open Galaxy, investing and equity participation in the companies of the developer of space innovations will be as easy as investing in Tesla, Amazon or Alibaba.
Robotics, new materials, biotechnology, alternative energy sources, meteorology and many other areas related in one way or another to the development of human presence in outer space.
All these areas for investment will not only be available to all investors with a check starting from $10–100, but they will also receive an additional amount of investment to improve the life of humanity not only in outer space, but also on earth.
It is up to you to invest in TikTok through NASDAQ or in oxygen regeneration technology through Open Galaxy!