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Featured In Fully informing your critical business and research decisions Those seeking global business and investment opportunities in the Some Companies We Track NewSpace industry have been significantly disadvantaged by the lack of a complete source for industry-specific expert information and analysis. Today, their source is NewSpace Global. Products Observer Observer is a company-by-company database of information and analysis. Available for every company on Some Investors We Follow the NSG 100 and NSG OTB, Observer integrates with Thruster, NewSpace Watch, and the NSG Indices to offer a one-stop shop for information on NewSpace companies. Thruster Thruster, NSG’s monthly market tracking report, details the important events and other business activity in the NewSpace industry, including: ter of all things marketing, P.T. LETTER FROM THE EDITOR Barnum, allegedly approached Leading Investors in NewSpace the Akron duo with an offer of From Knieval to Canaveral: $100,000 (inflation-adjusted would Why NewSpace Must Leverage Media Markets be several million dollars today) to perform aerial tricks in Barnum’s famous traveling circus. The Years before Felix dia. Unfortunately, there is much skepticism by se- Wrights refused to sign the con- Exclusive Interviews with NewSpace Leaders Baumgartner amazed rious “engineurs” who tolerate marketing experts tract because, as they explained, millions with Red only slightly more than corporate lawyers. (Please “we are not circus performers.” Bull Stratos, and Nik see “Exit Strategy / Escape Velocity” in the April Wallenda tightrope 2012 issue of Thruster.) But therein lies the rub: you For the NewSpace industry to walked across the might build a cutting edge smallsat or engineer a grow properly, NSG 100, NSG OTB, and NSG PTC leaders Publicly Traded Companies in NewSpace Richard M. David Grand Canyon, there hyper-efficient micro-thruster but if you don’t com- Richard Phillips speaking at NewSpace 2013 was Mr. Evel Knieval. municate it properly, will your story – like the fate- must understand that the media Photo credit: Franklin Moore When I was a child, Knieval was the man. Knieval, ful tree that falls in solitude – even be heard? should not be feared. (Please see who desired to be the first “LargeCap Review” in this issue sors, et cetera. Now is the time to rethink corporate to jump a motorcycle over Knieval’s marketing prowess and of Thruster.) The good news is that, for the intro- goals and create and deliver messages designed to Large / SmallCap Review the Grand Canyon, once verted NewSpace executive who fears marketing resonate with the right audiences.” said: “I don’t care if they ability to leverage mass media more than an acrophobe fears base jumping, all is say, ‘Look, kid, you’re go- were perhaps as impressive as the not lost. Or as Caroline Venza, founder of Mission Richard Phillips, President of Phillips & Company ing to drive that thing off Control Communications, advises: “Unfortunately, an Austin-based communications strategy firm, the edge of the Canyon motorcycle jumps and the dozens of the majority of NewSpace companies are in the adds that “NewSpace companies do not under- and die,’ I’m going to do weeds when it comes to branding. For the most stand that a good communication strategy requires Real Estate bones he broke performing them. that you position yourself as a leader on the issues it. I want to be the first. part, they’ve gotten to where they are with little to If they’d let me go to the no branding, focusing instead on meeting highly that are driving the market. And most NewSpace moon, I’d crawl all the way to [Cape Canaveral] just The Wright brothers faced a similar dilemma. complex technical milestones.” As the NewSpace companies are still focused on driving media mes- to do it. I’d like to go to the moon, but I don’t want Following the success of the Wright Flyer, the mas- industry matures from a state of nascency into a sages on ‘fire and smoke’ announcements or key- to be the second man to go there.” thriving innovation economy, corporate leaders note speaker placements.” Phillips, who intro- Technologies “Scaled” to Space His daredevil stunts, Elvis-like must learn to think beyond innovation. Venza con- duced me to his “Leadership Momentum Model” wardrobe and poetic name were a tinues, “In this new phase, technologies are com- at the NewSpace conference last month, believes metaphor of courage for kids of my ing to market and these companies need to attract that NSG-tracked companies must build so-called generation. As an adult today, I re- outside stakeholders be it media, investors, spon- market momentum (as a byproduct of Speed times alize Knieval’s marketing prowess Direction). While Phillips is Space-Derived Technologies Used on Earth and ability to leverage mass media “In the next 10 years...a few generally bullish on the com- were perhaps as impressive as the mercialization of space, he ad- motorcycle jumps and the dozens of NewSpace companies will rise vises like Venza who spent a de- bones he broke performing them. to the challenge and those that cade marketing for clean tech companies in Silicon Valley, Public Policy While many hard-nosed NewSpace communicate with vision and that understanding analogs to executives may question the val- successful companies in oth- ue produced by Baumgartner, passion will win.” er industries can prove useful Wallenda, or Knieval, one thing is for NewSpace market strategy. for certain: all three generated (and – Richard Phillips, President, “When Cisco Systems entered continue to generate) vast sums of Phillips & Company the market with a competitive Point-to-Point: Western Europe, Asia, Canada, Evel Knievel preparing for his Snake River Canyon jump money for many of those in the me- router, Lucent and 3Com were 4 Thruster • September 2013 © 2013 NewSpace Global, LLC • (855) NSG-INDEX www.newspaceglobal.com • [email protected] September 2013 • Thruster 5 Russia and Eastern Europe, Brazil PRINT ONCE - DO NOT FORWARD - DO NOT COPY PRINT ONCE - DO NOT FORWARD - DO NOT COPY NewSpace Watch NewSpace Watch (www.newspacewatch.com) reports daily on the latest events, technical progress, company announcements, conferences, investment activity, and other developments in the NewSpace industry. NewSpace Watch is read regularly by industry leaders, academics, government agents, investors, students, and enthusiasts. Its legacy goes back over a decade and contains over 25,000 articles. The NSG Indices NSG Analysts track over 600 privately and publicly held companies across the following three live indices: NSG 100: Top 100 privately held companies in NewSpace NSG OTB: Privately held “On the Bubble” companies NSG PTC: Top “Publicly Traded Companies” in NewSpace NewSpace Global, LLC | 855.NSG.INDEX / 855.674.4633 14-Day Free Trial 244 5th Avenue #1609, New York, NY 10001 Available www.newspaceglobal.com | www.newspacewatch.com New York Cape Canaveral Los Angeles Salt Lake City Washington, D.C. San Francisco Hong Kong Boston Beijing Seattle Toronto © Copyright 2014 NewSpace Global, LLC. All Rights Reserved. www.newspaceglobal.com [email protected] June 2014 • Thruster 1 PRINT ONCE - DO NOT FORWARD - DO NOT COPY Contents I. LETTER FROM THE EDITOR Te 2nd Vertical: No Longer the 1st Place Loser 4 Richard M. David II. LARGECAP REVIEW LargeCap Battles: And We Haven’t Even Brought in the PTCs 13 David Bullock III. SMALLCAP REVIEW Today’s LVPs’ Impact on Tomorrow’s Dedicated Small Payload Vehicles 16 Cory Harrigan IV. OBSERVER SNAPSHOT Sierra Nevada Corp. 20 Sequoia Space 21 V. NEWSPACE TIMELINE Te Past Month in Review from NewSpace Watch 22 Clark S. Lindsey VI. INDEX REVIEW Benjamin Strevy 24 VII. SMALLSAT REVIEW First Law of Launchdynamics: You Can’t Get Something for Nothing 28 Jigar Patel 2 Thruster • June 2014 © 2014 NewSpace Global, LLC • (855) NSG-INDEX PRINT ONCE - DO NOT FORWARD - DO NOT COPY VIII. POINT-TO-POINT CANADA: Are Canadian Payloads “Tumbing a Ride” to Orbit? 31 Chuck Black RUSSIA AND EASTERN EUROPE: Where Tere is Established Space’s Loss, Tere is NewSpace’s Gain 34 Andrew Tytarenko WESTERN EUROPE: 2nd Vertical Opportunities Beyond Russia and the US 37 Viacheslav Pronskyi IX. PUBLICLY TRADED COMPANIES A Disruption in the Launch Paradigm 40 Clark S. Lindsey X. LEADERS OF NEWSPACE First Mover: An Interview with NewSpace Trailblazer Andrew Beal 43 David Bullock XI. FUTURE STARS Rockets Fly High Down Under: An Interview with Rocket Lab’s Peter Beck 49 Tara Halt XII. EXIT STRATEGY / ESCAPE VELOCITY Te Background on Rockets: Te Music One, Tat Is... 53 James Douglas XIII. GLOSSARY www.newspaceglobal.com [email protected] June 2014 • Thruster 3 PRINT ONCE - DO NOT FORWARD - DO NOT COPY LEADERS OF NEWSPACE First Mover: An Interview with David Bullock NewSpace Trailblazer Andrew Beal Perhaps more important than the technology that Beal Aerospace de- veloped was the founder’s philoso- phy: i.e. that an entrepreneur could build and capitalize a launch vehicle company that cost-efectively prof- ited from sending commercial pay- loads to space. (Please see “Letter from the Editor” in this issue of Truster.) For those unfamiliar with Beal’s work, today’s NewSpace leaders like Jef Bezos, Elon Musk, and Richard Branson owe much to the man who laid it all on the line – i.e. his time, Andrew Beal, founder of Beal Aerospace his money, and his reputation – to prove that the commercialization of Andrew Beal made his billions by owning and op- launch can and should be done. erating banks and real estate in the greater south- Tus, when the opportunity to interview one of the western part of the United States. With years original launch vehicle mavericks became avail- of business experience, in 1997 he formed Beal able, NewSpace Global editors seized on the op- Aerospace, arguably one of the frst NewSpace portunity.