Is The New Space Business 2008 The Internet 1994?

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New Space 2008

The New Space Business – The Internet, 1994?

The buzz is on. The New Space business is starting to, sorry, take off. It's starting to look like the internet/multimedia industries of the early 1990's. Or is it?

Working in the New Space business, and coming from the "Multimedia" business of the early 1990's, it is interesting to note the similarities and differences between the two. What follows are some of each. First, the similarities:

1. What Are You Talking About? People were confused when early adopters tried to explain websites, the power of email, digital transmission of media files and the obsession we all had with these subjects. Today, New Space encounters the "Giggle Factor" when the conversation turns to space tourism, space elevators, space hotels, the Lunar X Prize, and other subjects with which we are obsessed. In order to explain to someone what one does in New Space, first, one has to explain what New Space is.

2. Building the Infrastructure. Right now, other than Earth-based simulations, New Space is primarily about getting to a low cost launch. Without relatively easy access to space, much of the opportunity will remain untapped. In the early '90's, the internet/multimedia industry was about faster computers, CD-ROM drives in every box, faster modem speeds, better routers – all of the infrastructure that ultimately allowed Yahoo!, Amazon, EBay, Google, YouTube and Facebook to happen.

3. Bridging the Gap between engineers and investors. Does this sound familiar? As with the early programmers, the techies and the money people don't get together much. They don't speak the same languages. The engineers don't understand what is valuable to the investors. Only a few early investors have already opened their wallets to New Space ventures. And, just like the Internet, 1994, investors are starting to pay attention. Events such as the Space Investment Summit (note: MC Squared is involved in the production of this event, and Michael Leventhal will be speaking early in the day) have been designed to bridge the gap, just as Digital Hollywood was originally designed for the same purpose in the Digital Media business.

The Differences:

1. Budgets. Back in the day, 2 guys in a garage, several cases of Jolt Cola and a pile of Pizza Hut pizzas, and the next billion dollar company could be born. It still takes $100 million to put a rocket into space. That having been said, there are many New Space businesses that require far less funds than that to be viable.

2. The Government. Far more than the initial oversight by DARPA or the original management of the internet by Federal Government proxies like Network Solutions and IANA, many space companies have, as their primary customer, the U.S. Government. This affects business models, work cultures, growth potential and other factors that are key to the growth of fully functioning private enterprise.

At MC Squared, we are applying our experience from the early days of "New Media" to "New Space" and trying to draw lessons that will enable the success of our clients in the Space business.