Paul Eckert , Ph.D.International & Commercial StrategistThe Boeing Company – IDS – Space Exploration

Paul Eckert , Ph.D.International & Commercial StrategistThe Boeing Company – IDS – Space Exploration

Rutgers Symposium on Lunar Settlements7 June 2007New Brunswick, NJ

Attracting Private Investment for Lunar Commerce:Toward Economically Sustainable Development

Attracting Private Investment for Lunar Commerce:Toward Economically Sustainable Development

Network & Space SystemsSpace Exploration

Attracting Private Investment7 June 2007 2

Roundtables revealed connections.Roundtables revealed connections.

Roundtable 1 Dallas, Texas – June 2005 Broad survey of lunar-related opportunities

Roundtable 2 Houston, Texas – Oct. 2005 Focus on lunar-related solar power, propellant, media,

robotics

Roundtable 3 Las Vegas, NV – July 2006 Shift focus to entire Earth-Moon economic system

Investment Summits – 2007 and onward

2Boeing Photo

www.spacecommerceroundtable.com

Attracting Private Investment7 June 2007 3

Roundtables expressed global views.Roundtables expressed global views.

3Boeing Photo

www.spacecommerceroundtable.com

Space Commerce Space Commerce RoundtableRoundtable

Space Frontier Space Frontier FoundationFoundation

National Space National Space SocietySociety

Attracting Private Investment7 June 2007 4

Roundtables yielded insights.Roundtables yielded insights.

Increasing Investment While Increasing Investment While Reducing RiskReducing Risk

Ventures

EECCOONNOOMMIICC

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Space Companies: Established

Space Companies: Established

Space Companies:

Startups

Space Companies:

Startups

Non-Space CompaniesNon-Space Companies

InvestorsInvestorsExperts/Partners:

Government, Academia,

Associations

Experts/Partners:

Government, Academia,

Associations

DemonstrationsDemonstrations

ResearchResearch

DialogueDialogue

ServicesServices

SurfaceSurface

PlatformsPlatforms

EnergyEnergy

InformationInformation

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Attracting Private Investment7 June 2007 5

More private investment is essential for commercial growth.More private investment is essential for commercial growth.

Problems facing space commerce are financial as much as technical.

Commerce could lower costs and increase availability of products and services, but public funding has not been enough to get things started.

A strategic move is to bring more investors into space commerce.

“Angels” are most likely to be interested in early-stage, high-risk, high-opportunity projects; larger investors usually get involved later.

Angel investors: listen to other investors, more than to analyst reports or

entrepreneurial pitches prefer invitations from people they already know specialize and want opportunities expressed in familiar terms have many opportunities to choose from

Attracting Private Investment7 June 2007 6

Investors are telling uswhat they want.Investors are telling uswhat they want.

Space Investment Summit New York City – Financial District – 16 & 17 April 2007 Co-Hosts: Space Commerce Roundtable, Space Frontier Foundation Supporting Organization: National Space Society

Space Venture Finance Symposium Dallas TX - 24 May 2007 Host: National Space Society Supporting Organizations: Space Commerce Roundtable, Space

Frontier Foundation, and Others

Collaborative Investment Event California - Autumn 2007 Coalition: SCR, SFF, NSS, California Space Authority, Alliance for

Commercial Enterprises in Space (ACES), NASA Space Portal, Etc.

Attracting Private Investment7 June 2007 7

Investors want to manage risk.Investors want to manage risk.

Market Size & Breadth Risk that market will not be sufficiently large or accessible

Residual Value Risk of insufficient value remaining if project fails

Competitive Assessment Risk of competitors’ taking market

Funding Availability Risk that capital will be unavailable when required

Human Factors Risk that management team or staff will be inadequate

Technical Viability Risk that technical approach will prove ineffective

Legal/Regulatory Constraints Risk of adverse government action

Attracting Private Investment7 June 2007 8

Investors want better approaches.Investors want better approaches.

How?How?

Entrepreneurial Entrepreneurial InnovationInnovation

What?What? New product/service Improved cost, performance,

safety, reliability

Who/Why?Who/Why?

Creativity Risk-taking Intrinsic

motivation

Identifying opportunity

Accumulating resources

Producing product/service

Marketing product/service

Building organization Responding to

government/society

Attracting Private Investment7 June 2007 9

Investors above all want markets. Investors above all want markets.

Solar Power: EO satellites, lunar surface ISRU

Propellant: EO depot, lunar surface ISRU

Communications/Navigation: EO satellites, cislunar network

Observation: Imaging of Earth & space, ground & space sites

Media: Advertising, entertainment, archive continuum

Structures: Habitations for EO, L1, lunar surface

Robotics: Orbital Express, lunar surface efforts

Transportation/Travel: Suborbital, orbital, cislunar, lunar

Attracting Private Investment7 June 2007 10

Transportation is a market enabler.Transportation is a market enabler.

International Space Station (ISS) utilization could stimulate demand for transportation.

Transportation availability could encourage ISS utilization.

Fully commercial Earth-orbiting platforms are also in development, which could benefit from the ISS “first step.”

COTS is a NASA public-private partnership for commercial Earth-to-Orbit vehicle development, funding Rocketplane Kistler (RpK) & Space Exploration Technologies (SpaceX).

Many entrepreneurs view Earth-to-orbit transportation as a stepping stone to the Moon and beyond.

Robust ISS utilization could create sufficient demand for non-U.S. as well as U.S. transportation services.

Attracting Private Investment7 June 2007 11

Interoperability expands markets.Interoperability expands markets.

Increased Supply and Demand Larger supplier and customer base

Reduced Cost Shared infrastructure & consumables Increased competition in commercial markets Decreased logistics overhead (i.e., fewer unique parts) Enhanced reuse & reconfigurability (e.g., lander converted to

propellant depot)

Enhanced Safety Rescue Repair

Attracting Private Investment7 June 2007 12

Interoperability involvesstandardized interfaces.Interoperability involvesstandardized interfaces.

Pressure vessels (any functional volume pressurized for human habitation: landers, habitats, rovers, logistics modules, etc.)

Electrical outlets and plugs

Liquid connectors for each type (e.g., water)

Gas connectors for each type (e.g., oxygen)

Data (e.g., Ethernet cables, RF/WiFi)

Airlock control panels

Spacesuit connections with habitat life support and environment control systems (servicing, recharging, umbilical operations)

Robotic manipulating mechanisms (robot to system interfaces)

Attracting Private Investment7 June 2007 13

Interoperability involves interchangeable items.Interoperability involves interchangeable items.

Assemblies: Life support Power (management,

generation, & storage) Waste management Thermal management Crew interface panel (e.g.,

command & control station) Airlocks Command & data handling

systems

Components: Microprocessors Valves Tanks Filters Keyboards Software Fans Computers Pumps Batteries Solar arrays Circuit boards Antennas

Attracting Private Investment7 June 2007 14

Government can encourage early market growth, within limits.Government can encourage early market growth, within limits.

Content & images provided by Howard McCurdy, Roger Launius, & Thomas MatulaContent & images provided by Howard McCurdy, Roger Launius, & Thomas Matula

Purchase (anchor tenancy)

R&D investment

Incentives: tax credits, etc.

Legal/regulatory action: liability, property rights, etc.

Attracting Private Investment7 June 2007 15

Multiple-use facilities attract more customers into markets.Multiple-use facilities attract more customers into markets.

NASA Image

NASA Image

Costs decrease through shared infrastructure, transportation, comm/nav, power, life support, etc.

Anchor tenants (bases, observatories, etc.) pave the way for additional users.

Attracting Private Investment7 June 2007 16

Multiple use technologies bring market profitability closer.Multiple use technologies bring market profitability closer.

Earth & Moon Technology Overlap same products/services that yield near-term profits on

Earth also yield longer-term profits on the Moon

Earth Profits Near-Term improved undersea and underground robots in the energy

and mining industries

Moon Profits Later lunar robotic factory involving multiple industries

7 June 2007 Attracting Private Investment 17

• Entrepreneurial innovation offers new products and services.

• Transportation is a key enabler.• Interoperability expands customer and

supplier base.• Government helps markets expand.• Multiple-use facilities attract more customers.• Multiple-use technologies bring market

profitability closer.

Market growth attracts investment, enhancing commercial sustainability.

NASA Image

Attracting Private Investment7 June 2007 18

For More InformationFor More Information

Paul Eckert, Ph.D.

International & Commercial Strategist

Boeing IDS - Space Exploration

703-414-6392

paul.a.eckert@boeing.com

Mark Lorimer

Administrative Support Coordinator

562-233-6400 (cell)

mark@eventivegroup.com