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Don't panic if you want to invest in space. Here’s everything you need to know.

March 16, 2023
minute read

There have been a lot of crises over the past week.

Given Virgin Orbit's precarious financial condition, its 700 or so employees had long feared: A halt to operations, with most employees on unpaid furlough. A series of loans from Richard Branson have kept Virgin Orbit from burning out cash in the meantime as it looks for a financial lifeline and explores options. It has yet to find an investor or buyer, and the reality of its situation has finally hit.

In the past 24 hours, I have received a variety of emails from executives at other companies who were hiring, although employees are awaiting an update and understandably fear layoffs. A number of rocket and space companies are located nearby Virgin Orbit's headquarters and factory in Long Beach, which is nicknamed "Space Beach". 

Even in the face of an uncertain future, Virgin Orbit workers should be reassured that talent is very competitive.

Next, we have Silicon Valley Bank. In the hours after SVB failed, I was concerned that the level of exposure to space companies in my portfolio would be much higher than it was, as reported by several venture capitalists I spoke with recently. However, on an individual company basis, the exposure turned out to be much lower than I had originally anticipated. According to Rocket Lab and Astra, respectively, both rocket companies have a cash exposure of about 8% and 15% to SVB.

As a result of the SVB situation, other banks may be pressured and startup fundraising could be more cautious in the future. As a result, some of the near-term threat to space firms is being diluted by effects that are having a broader impact on global banking rather than industry-specific venture capital risks. 

Additionally, a lone wealthy individual owns a large stake in multiple space companies, large and small. It could provide some security in the event of cascading bank failures such as those we have seen over the past few days. 

The tech giant revealed a trio of antennas for its Project Kuiper satellite internet. It also revealed its ultra-compact antenna weighing about one pound, which will take on SpaceX's Starlink. As Amazon prepares to launch a pair of prototype satellites in May, SVP Dave Limp updated the company about its progress.

During this year's launch of SpaceX's second-generation Starlink satellites, SpaceX plans to test satellite-to-cell service with T-Mobile. Satellites are currently being manufactured at a rate of six per day by the company. 

  • Aerojet Rocketdyne's planned acquisition by L3Harris is being investigated by the FTC: Aerojet Rocketdyne said in a filing that the Federal Trade Commission requested additional information and documents, extending the deadline for closing by 30 days.

  • With just 0.5 seconds left before liftoff, relativity's system triggered an abort, shutting off Terran 1's engines after briefly firing them up. After coming within minutes of getting Terran 1 off the ground, relativity postpones debut launch attempt: A second launch attempt is expected soon by Relativity. 

  • According to CEO Neil Masterson, OneWeb has moved on from the 36 satellites left behind in Kazakhstan. He knows that he will not be able to get them back anytime soon, and spends "no time thinking about" them. As a whole, the satellites are worth $50 million, said Masterson.

  • An Axiom spokesperson teased a spacesuit prototype at a NASA event, even though the black color was just a cover concealing the design details.

  • Amazon SVP Dave Limp believes the rocket market is well-served at the moment with new vehicles on the way. This is despite reports that United Launch Alliance is for sale.

  • After completing its fifth operational crew flight for NASA, SpaceX returns Crew-5 astronauts to Earth.

  • 7% increase in NASA's budget from the previous year: The Biden administration is requesting a 7% increase for NASA, with increased funding for Artemis lunar mission and Mars space mission.

  • In order to return the suborbital rocket to flight by the end of the year, Blue Origin is continuing to investigate New Shepard's failure. An executive at the company declined to provide details on the investigation, citing coordination with the FAA. However, the FAA stresses that companies are not prohibited from discussing ongoing investigations. 

  • In addition to SpaceX's delivery of 40 satellites to orbit for OneWeb, India's ISRO is ready to launch the last 36 satellites as part of the first-generation constellation.

  • The CRS-27 mission sent over 6,200 pounds of experiments and supplies to the space station aboard the SpaceX Dragon capsule. 

  • As the company prepares to launch its Vulcan rocket, ULA conducts rocket testing in Florida. The company said it completed a demonstration at the launch pad that demonstrated the first stage of tanking. 

  • Ochinero noted that SpaceX expects to receive its FAA license “very shortly” in order to announce a launch date for its Starship orbital launch. 

Mobilization of the industry

  • As part of the CLPS program, NASA awards Firefly a $112 million contract for its lunar mission: The company announced that it would debut its Blue Ghost spacecraft in a two-stage version for its second cargo mission to the moon, delivering both payloads to the surface and satellites to lunar orbit. 

  • Using Varda's re-entry capsule as a hypersonic test bed, the Air Force awards the company a $60 million contract.

  • ZIN Technologies has been acquired by Voyager Space for an undisclosed sum to assist in the development of the Starlab space station. 

  • Two satellites will be operated by Astranis for Mexico's Apco Networks starting next year. 

  • As co-founder brothers Karan and Neel Kunjur seek to leverage the promise of new rockets like SpaceX's Starship, K2 Space emerges from stealth with plans to build massive satellite buses.

  • The New Zealand-based Dawn Aerospace will provide Lynk Global with propulsion systems that would "improve deployment, life extension, collision avoidance, and de-orbiting capabilities." 

  • For Earth-imaging satellite missions scheduled to begin in late 2025, ESA has purchased two Vega C rockets from Arianespace on behalf of the Italian government. 

  • EchoStar's ground system is selected by Malaysian satellite operator

  • Hughes is deploying the MEASAT-3d satellite to deliver high-speed broadband services across Malaysia, serving more than 2 million people within 3 years with speeds of up to 100 Mbps. 

  • Global satellite internet provider OneWeb signs an agreement with Amazon Web Services for cloud services: OneWeb is exploring providing cloud-based connectivity to customers worldwide and delivering innovative services through the Amazon division. 

  • Sierra Space hires Tim Keating as its Chief Strategy Officer and Senior Vice President of Global Government Operations: Keating is former Boeing's top lobbyist. 

  • Having served as president and CEO of the state's aerospace development authority for 14 years, Frank DiBello retires from Space Florida.

The market movers

  • A pause in operations and nearly a shutdown of Virgin Orbit's operations result in a stock decline of more than 30%

  • After fourth-quarter results, Bank of America reiterated a sell-equivalent rating for Virgin Galactic, with a $3 price target, a 35% drop from its current price. As a result of “lower projected flight volumes” for VSS Unity, as well as its “vulnerable” strategy of leaving VSS Imagine idle, the firm said its lower price target was due to these factors.

  • The company plans to report its fourth-quarter results about two weeks from now. In the meantime, it has hired a firm to investigate "possible illegal short selling" in its stock. 
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Valentyna Semerenko
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