In a recent fireside chat, Bogdan Gogulan, CEO and Managing Partner of NewSpace Capital, shared his insights on the burgeoning space economy and its investment landscape. Hosted by Giovanni Amodeo, the discussion delved into the growth of the space industry, investment strategies, and the potential of space technology to address global challenges.

Background and Career Path: Bogdan Gogulan, originally from Estonia, has a rich background in financial economics and capital markets, with experience in both the finance and defense industries. His journey into the space sector was sparked by his work in defense, particularly in intelligence, surveillance, and reconnaissance, highlighting the critical role of earth observation data and satellite communication.

NewSpace Capital’s Investment Focus: Gogulan introduced NewSpace Capital’s unique investment thesis, targeting growth capital in the space industry. This strategy aims to support companies that have surpassed technical, market, and financing risks and require working capital to scale operations. This approach offers investors a lower-risk entry point into the growing space market.

Space Economy Outlook: The space industry, valued at over $450 billion, has seen continuous growth over the past 10-15 years. Gogulan emphasized the shift towards commercial activities, which now constitute 80% of the space sector, driven by demand from traditional industries like transportation, communication, finance, and insurance.

Investment Strategy and Portfolio Management: Gogulan detailed NewSpace Capital’s investment criteria, focusing on growth-stage companies with scalable, repeatable revenue and a clear problem-solving proposition for their customers. The fund, targeting a size of $250 million, aims for concentrated investments of $10 to $20 million in companies that can benefit from NewSpace Capital’s expertise and network to drive additional revenue.

Sustainability and Productivity: Sustainability and productivity emerged as key themes, with Gogulan highlighting investments in companies like Kayrros, a leader in global environmental intelligence and asset observation technology, and ICEYE, which offers critical data for addressing climate change and natural disasters. These examples underscore the space industry’s potential to enhance productivity across various sectors, including agriculture and insurance, through space-enabled technologies.

Future Directions: While NewSpace Capital currently focuses broadly on the space sector, Gogulan did not rule out the possibility of specializing in specific verticals like space for agriculture or finance in the future. He also noted the importance of bridging the knowledge gap between space technology capabilities and industrial challenges, suggesting that future hires might include professionals with expertise in the industries served by space technology.

In summary, Bogdan Gogulan’s fireside chat offered a comprehensive overview of the investment opportunities and challenges within the space economy. With a focus on growth capital, sustainability, and productivity, NewSpace Capital is positioning itself at the forefront of this exciting and rapidly evolving industry.

Key timestamps:

00:09: Introduction to ION Influencers’ Fireside Chats
00:34: Background of NewSpace Capital and Investment Thesis
02:50: Investment Criteria and Due Diligence
07:09: Investment Example: Cailabs
09:16: Pitching Investors and Investment Strategy
11:59: Fund Size and Investment Strategy
13:24: Fundraising and Future Plans
14:11: Exit Strategies and Potential Buyers
16:22: Buyers in the Space Technology Market
17:57: Impact on Productivity and Sustainability