Growing defense budgets and geopolitical shifts are creating new investment opportunities for early-stage development of the European space industry, investors said at the satellite conference. Investors point to parallels between the development of the European space industry and that, how the sector has flourished in the United States, where the investment eventually led to large returns, which did not happen on the other side of the Atlantic.
Europe is experiencing a stir around investment in defense, which could fuel a commercial space boom, - said the investment partner of Alpine Space Ventures Bulent Altan, speaking at a conference 12 March. His report was preceded by a public announcement by the President of the European Commission, Ursula von der Leyen, to the ReArm Europe Plan, initiatives to strengthen defense and resilience, worth 800 billions of euros (872 billions of dollars), as the US changes its role in global security.
Such programs, like IRIS², European multi-orbital broadband cost over 10 billions of dollars, also reflect the shift to integrating commercial space into defense—a strategy of using civilian manufacturers, for military tasks, which became key in the development of space capabilities of the US government.
This is the first time for Europe, because previously the initiatives relied exclusively on the public sector, said Altan.
Philip Kochian, an investor from Expansion Ventures, expresses optimism, citing increased defense spending and a more holistic approach to procurement, which are key factors in the space dynamics of Europe. He also noted, that increased funding and strategic initiatives can help Europe attract more engineers and entrepreneurs.
However, Kochian also issued a warning, that Europe will need at least another seven years, to see massive returns on investment, which have already materialized in the USA.
Source: https://spacenews.com/investors-bet-on-europes-space-sector-as-geopolitical-winds-shift/