The space tech industry has entered a dynamic phase of rapid growth, with innovations pushing the boundaries of what’s possible in sectors ranging from telecommunications to agriculture. As the space industry matures, it presents significant opportunities for investment, particularly for companies at the growth and scale-up stages. These companies, which have already developed breakthrough technologies and secured initial market traction, are generally looking to scale their operations, expand their customer base, and increase their impact.
However, as exciting as the potential is, the space industry is also navigating a complex landscape of financial, technical, and operational hurdles. For many companies, transitioning from a small, technology-driven start-up to a fully operational, market-leading enterprise demands a careful balance of innovation and executive expertise.
The Space Insider team had the opportunity to sit down with Bogdan Gogulan, CEO and Managing Partner of NewSpace Capital, where he shared his insights on how companies can successfully navigate this balance, the critical role of investment, and how the space industry’s evolving needs will shape its future. As Gogulan, puts it, “The space industry has immense potential, but to fully realize that potential, companies must combine technological brilliance with a clear commercial strategy. Without that balance, growth can be difficult, and opportunities may be missed.”
The Importance of Continued Investment in Space Tech
To fully grasp the potential of the space industry and the challenges it faces, it’s crucial to first understand the importance of continued investment in space tech.The space industry remains a highly specialized and complex field, and as Gogulan points out, “is still underfunded compared to other sectors.” Despite its promise, many space-related technologies—essential for addressing global issues such as climate change, resource management, and sustainable development—are not receiving the financial backing they need. Space technologies can improve efficiencies in industries like agriculture, healthcare, and telecommunications, making the sector an attractive option for long-term investment. As Gogulan notes, “We’re talking about an industry that has been growing above the economy for the last decade, and it is expected to triple in size in the next decade.”
However, traditional investors, especially those from sectors like real estate or consumer products, often struggle to navigate the technical complexities of space technologies. The intricacies of space tech, combined with its non-traditional asset class status, make it difficult for investors to assess risks and growth potential. “Space is becoming an asset class in its own right, but most traditional investors still don’t understand its unique dynamics,” Gogulan explains. “Investors who are not familiar with the market need to develop a deep understanding of its technological complexities and growth cycles in order to make informed decisions.”
This gap in understanding, along with the fragmented nature of the space industry, can result in overlooked opportunities or miscalculated risks. For growth-stage companies, the need for investors who grasp the nuances of both technology and commercial scalability is essential. NewSpace Capital, for example, is bridging this divide by combining technical expertise with financial insight, helping investors make more informed decisions as the space sector evolves.
Bridging the Gap Between Technology and Business Acumen
For space tech companies at the growth stage, one of the most significant hurdles is the gap between groundbreaking technology and the commercial acumen required to scale. While many space tech founders excel in technical innovation, translating that innovation into scalable business operations is a distinct skill set that not all technical experts possess naturally. As Gogulan emphasizes, “The most successful CEOs in the space sector are not just technology experts—they are also visionaries who can scale their companies. They know when to step back and allow others to take the reins in certain areas, which is essential for scaling effectively.”
Scaling from a technology-focused start-up to a fully operational enterprise demands a combination of innovation and strong leadership with the ability to delegate strategically as the company grows. “What separates the most successful companies from others is leadership—the ability to inspire teams, execute a vision, and scale rapidly. The ability to delegate, let go of certain responsibilities, and trust others to carry the torch is crucial,” says Gogulan.
Gogulan further points out that great leaders understand their role evolves as their companies grow. “A good leader is someone who adapts. Every couple of years, they need to reinvent themselves. From being a technical expert, to a strategist, to a people leader, and finally, a visionary—each step requires new skills and a new mindset.” This ability to evolve alongside the company is critical for successful scaling in the space tech sector, where companies must continuously shift their focus as they move from product development to market dominance.
Space Tech as a Geopolitical Asset
Gogulan’s insights also challenge traditional ideas of national sovereignty in space, advocating for more cross-border collaboration to drive innovation and efficiency. Space, he argues, should not be viewed solely as a national competition but as a global asset that benefits from international cooperation. “Space is not an industry; it’s a geography,” he says. “Every global industry will have a space component, whether it’s agriculture, defense, transportation, or insurance.” This broad view of space technology reflects its growing integration into global infrastructure, impacting multiple sectors and economies.
“No single country can fully control or dominate space anymore,” Gogulan explains. “The challenges we face in space—whether it’s satellite communications, climate monitoring, or even deep space exploration—require a global effort. Space is inherently international, and the future of space innovation lies in collaboration across borders, leveraging the best capabilities from different countries and industries.”
That being said, Gogulan is realistic about the barriers to international collaboration, particularly when it comes to government policies. He stresses that geopolitical tensions and national security concerns can create uncertainty that hinders investment in the sector. “Investors hate uncertainty,” he states, adding that a clearer, more cohesive global strategy for space could alleviate some of these issues and allow for more effective international partnerships.
The Role of Space in Addressing Global Challenges
As the world faces an increasing range of global challenges, including climate change and resource shortages, space technologies offer potential solutions. Gogulan notes that space can help improve productivity and efficiency across industries, thereby supporting sustainability goals. For instance, precision agriculture, which relies on satellite data, can increase crop yields while using fewer resources. Similarly, satellite-based communications systems are far more resource-efficient than traditional infrastructure. “The space industry is incredibly resource-efficient,” he explains, comparing satellite-based communications to traditional broadband infrastructure. “If we tried to build the same amount of infrastructure on the ground, we would run out of resources like copper and steel.”
With that in mind, for Gogulan, the biggest question isn’t whether space is a good investment—it’s how to allocate resources effectively within the sector. He stresses that investors should focus on companies that are solving real-world problems and not just creating new technology for technology’s sake. “The key to successful investment in space is identifying companies that are addressing actual challenges, not just those with cool tech. Technology should be a means to an end—solving a problem or improving an existing system. Investors need to look beyond the novelty of the technology and evaluate its real-world impact,” Gogulan explains. By focusing on companies with real-world impact, investors can direct financial resources toward businesses that are not only profitable but also contribute to solving critical global issues.
The Future of Space Tech Investment
Looking ahead, Gogulan is optimistic about the growth potential of space technologies, particularly in low Earth orbit (LEO). He highlights the importance of innovations in onboard processing, materials, and satellite communications, which will pave the way for more advanced space applications. “We’re seeing a convergence of space and non-space supply chains,” he explains, referencing industries like medical devices, automotive, and agriculture, which are increasingly incorporating space technologies into their operations.
As for NewSpace Capital’s role, Gogulan emphasizes the firm’s focus on growth-stage companies. “We’re not looking for early-stage tech startups,” he says. “We invest in companies that have already proven their technology, have a customer base, and are ready to scale globally.” The firm’s portfolio includes market-leading companies in areas like synthetic aperture radar, laser communications, and optical sensors, all of which are well-positioned for rapid growth in the coming years.
Gogulan’s insights highlight the need for continued financial backing in space tech to unlock its full potential. With the right combination of technical expertise, business acumen, and strategic leadership, the space industry is poised to become a key driver of economic growth and societal impact. For investors, the opportunity to support companies that not only promise significant financial returns but also contribute to solving global challenges is an enticing one. As Gogulan puts it, “Space is not just an investment opportunity; it’s an opportunity to make the world a better place.”
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