Spotlight: Bulent Altan - Founding Partner @ Alpine Space Ventures
All things space tech with Bulent Altan: Alpine's €100M+ ambition, start-up assessment, Europe's edge, and a billion-dollar idea.
Colony No 64. Astronauts 9625.
Why space investments are crucial for the development of our species?
Investing in space is investing in technologies that have far-reaching implications, from improving Earth-based communications to addressing large-scale environmental challenges. Space technologies play a crucial role in monitoring climate change, managing natural disasters, ensuring global connectivity, providing navigation services, and assisting armed forces. For us at Alpine Space Ventures investments in space are not about expanding humanity’s frontier of space exploration; they are about harnessing the potential of space-based solutions to solve some of the most pressing issues we face as a global community down on Earth.
Amidst a challenging VC landscape, you've successfully raised a €100M+ fund. What is your edge?
I believe our success can be attributed to two core factors: our unique investment ethos and our team's unparalleled NewSpace expertise.
Investors are drawn to our strategy of concentrating on businesses that serving existing space industry verticals that have been deprived of innovation so far. We steer clear of lofty, high-risk ventures like human spaceflight, and asteroid mining, or business models that rely on the development of, for example, a lunar economy or space tourism that may open new markets but also have a lot of associated technical, regulatory, and schedule risk. Instead, we focus on space tech applications with existing markets, significant growth potential, and which benefit of the fundamental market dynamics of commercialization in the sector. This approach appeals to investors looking for outsized returns that the disruption of the space industry offers without adopting much of the speculative risk.
Secondly, our team's expertise is a cornerstone of our success. Unlike teams laden with corporate backgrounds from the old guard, our team consists exclusively of individuals who have actively redefined categories and built markets in the NewSpace sector. In my 12 years with SpaceX, I was already leading technical teams and building systems for the Falcon 1, Falcon 9, Dragon, and later Starlink when space was not yet an investment theme. My colleagues boast similar experiences. Each member has a proven track record of developing teams, products, and companies that have disrupted and continue to disrupt the legacy space industry. This hands-on experience in pioneering and scaling successful NewSpace ventures is something unique about us that resonates well with our investors. It is the reason we have many industry insiders among our investors including more than 20 early employees of SpaceX.
As a Series A investor, how do you assess start-ups? Do you look at traction, technology readiness level, valuation, and team dynamics?
We look for startups that have a clear product-market fit with their initial offerings. Traction isn’t just about revenue; it's about having a growing customer base, strategic partnerships, and evidence of demand for their solution.
A high technology-readiness level isn't always a prerequisite as we have the technical experience in the team needed to validate technical concepts even pre-demonstration, and hence reduce our investment risk.
We seek realistic valuations that reflect both the current state of the venture and its future potential. We avoid crowded and much-hyped investment rounds, focusing instead on those where our investment can catalyze significant growth. And we like to build strong positions when we have conviction about a certain company.
Perhaps most crucially, we evaluate the team. We look for founders and leaders who have not just the vision but also the experience and grit to navigate the commercialization of the space industry. A strong team is often characterized by a blend of technical expertise, industry experience, and a track record of overcoming challenges.
What kind of commercial value proposition do you seek in investment opportunities?
Our focus on disrupting business models in the space industry is centered on fostering the commercialization of space. This shift is characterized by a move away from the traditional, consolidated market dominated by a few legacy players, towards a more open and competitive environment.
We are witnessing a paradigm shift in the industry, that was spearheaded by initiatives like NASA's Commercial Orbital Transportation Services and the Space Development Agency's procurement strategies in the United States. These models emphasize fixed-firm price contracts and encourage open competition, allowing multiple vendors to participate simultaneously.
By investing in companies that operate under this new paradigm, we're championing a future where competitive forces drive innovation and efficiency. This approach not only breaks down monopolies but also lowers costs, increases access, and accelerates technological advancement. Our goal is to back ventures that are at the forefront of this commercialization wave, reshaping the space industry into a more dynamic, accessible, and solution-oriented sector.
With the U.S. being the leading market, how do you envision Europe's role in the industry?
Europe's evolving role in the space industry is increasingly defined by its ambition for technological sovereignty. This drive is not just about advancing space capabilities but also about ensuring strategic autonomy in critical technologies. Europe's focus on building its space infrastructure and capabilities is crucial, especially in areas like satellite communication and navigation systems, where dependence on non-European systems is increasingly considered a risk.
The European space industry's relatively nascent stage in commercialization presents a unique investment opportunity. Unlike the U.S. market, which has seen a significant evolution over the past decade with private enterprises taking a leading role, Europe's space sector is just beginning to embrace this shift. This presents a landscape rife with potential for disruptive innovation and new market entrants.
What are the most promising opportunities in space tech for investors?
Alpine Space Ventures focuses on foundational technologies fueling the space industry's commercialization. We invest in the essential infrastructure – like advanced satellite manufacturing, components, software, and ground infrastructure – necessary for this sector's growth. Our strategy is to target these crucial, underlying components, which are key to the sustainable expansion of the commercial space industry.
If you were to attempt to build a space tech unicorn, which sector would you choose?
I'd probably zero in on satellite manufacturing at scale. It’s no coincidence that at Alpine Space Ventures, we've already placed bets on two satellite manufacturers, Reflex Aerospace and K2 Space, each targeting distinct segments of the satellite market.
Reflex Aerospace is doing some exciting work with small satellites, which are perfect for a variety of applications in lower Earth orbits. Then there’s K2 Space, which is gearing up for the Starship era, focusing on much larger satellites. This diversification is strategic; it's about covering all bases in a market that's rapidly evolving.
This field, satellite manufacturing at scale, is where I see a lot of untapped potential. It’s crucial, it’s in demand, and most importantly, it’s foundational for the growth we’re anticipating in the space industry.
What advice would you give to investors considering a shift from other sectors to space?
It's crucial to recognize the unique challenges of this sector. Space isn't just another investment area; it's a complex field with its own set of advanced technologies and regulatory intricacies. My key piece of advice? Don’t go it alone. The learning curve in space tech is significant with feedback loops that are many years.
If you’re considering entering the space sector, think about collaborating with experts who have a proven track record. Whether that’s through direct investments or co-investing, leveraging expert insights is crucial. In space tech, it’s not just what you invest in; it’s also about how and with whom you navigate this dynamic and intricate industry.
This is where I believe the value of partnering with specialists like Alpine Space Ventures comes into play. Our team has a deep-rooted understanding of the NewSpace landscape, honed by decades of experience at SpaceX and other category leaders. We’re not just following trends; we're identifying sustainable, impactful investment opportunities in space tech that are set to benefit from industry dynamics.
What is the most pressing issue in the industry, and how can we collectively address it?
The sustainability of space operations is a critical issue in the industry – and a significant market opportunity. The increasing number of satellites and the risk of space debris pose a significant challenge. Addressing this demands a collective approach – it’s about the entire industry adhering to sustainable practices and regulations.
At Alpine Space Ventures, our focus is on investing in companies that prioritize sustainable space operations, from debris mitigation and avoidance to effective satellite management. We also emphasize the importance of collaboration across the industry to develop and implement comprehensive solutions, ensuring that our space activities are responsible and sustainable for the long term.
“SpaceTech! SpaceTech! SpaceTech!” - Steve Ballmer in a parallel universe
We aim to ignite a passion for space exploration. Whether you're a VC, angel investor, scientist, or launching a company — reach out to our research hub at hello@spaceambition.org. We’d love to chat with you!
Excellent!
As a former employee of Mynaric, it is astonishing to me that despite of his experience with leading teams at SpaceX, Bulent failed so gloriously at Mynaric. After just a few years of him at the helm, the place lost all of its good engineers and employee retention is just ridiculously low.