The company invests in a new industry that promises a large and wealthy market, plus the excitement of a new frontier for civil participants Just
The company invests in a new industry that promises a large and wealthy market, plus the excitement of a new frontier for civil participants
Just like Jeff Bezos, Elon Musk and Richard Branson have done before individually, now Porsche goes into the space race
Gto News presents this story by CNN about Porsche and its venture into the Space industry investing in Germany’s Isar Aerospace.
Porsche SE, the family holding company that controls Volkswagen Group, is the latest big investor to bet on space’s cricial role in developing future technologies, reported CNN.
The company, controlled by the related Porsche and Piëch families that turned Volkswagen into a global powerhouse, have unveiled an investment into Germany’s Isar Aerospace, a space startup attempting to rival Jeff Bezos’ Blue Origin and Elon Musk’s SpaceX with rocket production and satellite launch services.
Ready to compete
Blue Origin and SpaceX are backed by billionaires and already racing ahead with manned space missions, and Isar Aerospace believes it can compete in the growing market for launching small satellites into Earth’s orbit. The first test flight is planned as early as 2022.
Porsche SE is investing alongside other venture capitals to inject $75 million into the company, as part of a $165 million funding round that includes existing investors. Porsche SE informed it would receive a “a low single-digit percentage stake.”
In operation
“The funding will allow Isar Aerospace to further invest in its launch, testing, and manufacturing infrastructure for its largely automated rocket production and commercial operations,” Isar Aerospace informed in a statement.
It is expected that the commercial demand for the launch of small satellites will grow significantly in the coming years, as companies in traditional and emerging industries come to rely more heavily on satellite technology to run software applications, reported CNN.
“Space will become a key technological platform for many industries worldwide, from the automotive to the telecoms sector, bringing advances and new capabilities of (Internet of Things), data encryption and storage, as well as smart farming applications and surveillance for tackling climate change,” declared Isar Aerospace.
An attractive market
According to the company, the global space launch services market is expected to increase to over:
- 35.4 billion dollars by 2027
almost a third of which will stem from the deployment of small and medium-sized satellites.
New frontiers
Although a relatively small deal for Porsche SE, it’s a notable move for a business that’s invested overwhelmingly in automotive businesses and is the latest example of the space race taking hold between private companies and their billionaire backers. Volkswagen Group owns brands including Porsche, Audi and Skoda.
Enabling innovation
“We are convinced that cost efficient and flexible access to space will be an enabler of innovation in many industry sectors,” Lutz Meschke, the Porsche SE executive in charge of investment management, said in a statement.
“With Isar Aerospace, we are investing in a company that is well positioned to establish itself as a leading European manufacturer of launch vehicles,” said Meschke as reported by CNN.
