Paul Eckert , Ph.D.

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Attracting Private Investment for Lunar
CommerceToward Economically Sustainable
Development
Network Space Systems Space Exploration
Rutgers Symposium on Lunar Settlements 7 June
2007New Brunswick, NJ

• Paul Eckert , Ph.D.
• International Commercial Strategist
• The Boeing Company IDS Space Exploration

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Roundtables revealed connections.
www.spacecommerceroundtable.com

• 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

Boeing Photo
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Roundtables expressed global views.
www.spacecommerceroundtable.com
Space Commerce Roundtable Space Frontier
Foundation National Space Society
Boeing Photo
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Roundtables yielded insights.
Increasing Investment While Reducing Risk
Ventures
Multiple-Use Applications
Demonstrations
Research
Entrepreneurial Innovation
Dialogue
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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

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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.

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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

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Investors want better approaches.

• New product/service
• Improved cost, performance, safety, reliability

What?
Entrepreneurial Innovation
How?

• Identifying opportunity
• Accumulating resources
• Producing product/service

• Marketing product/service
• Building organization
• Responding to government/society

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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

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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.

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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

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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)

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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

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Government can encourage early market growth,
within limits.

• Purchase (anchor tenancy)
• RD investment
• Incentives tax credits, etc.
• Legal/regulatory action liability, property
  rights, etc.

Content images provided by Howard McCurdy,
Roger Launius, Thomas Matula
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Multiple-use facilities attract more customers
into markets.

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

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

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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

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Market growth attracts investment, enhancing
commercial sustainability.

• 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.

NASA Image
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For More Information

• Paul Eckert, Ph.D.
• International Commercial Strategist
• Boeing IDS - Space Exploration
• 703-414-6392
• paul.a.eckert_at_boeing.com
• Mark Lorimer
• Administrative Support Coordinator
• 562-233-6400 (cell)
• mark_at_eventivegroup.com