Following the opening ceremony of the International Space Robotics Competition & Conference 2025 Justyna Redelkiewicz, MBA from GoCosmic delivered a keynote on “The Challenges of Space Commercialization” that revealed a sobering reality: 90% of space start-ups fail within their first decade. This statistic, while daunting, presents an opportunity to learn from common pitfalls and chart a course toward sustainable success.
๐๐ก๐ ๐๐ซ๐จ๐๐ฎ๐๐ญ-๐๐๐ซ๐ค๐๐ญ ๐
๐ข๐ญ ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐: ๐๐ฎ๐ข๐ฅ๐๐ข๐ง๐ ๐๐ก๐๐ญ ๐ญ๐ก๐ ๐๐๐ซ๐ค๐๐ญ ๐๐๐ญ๐ฎ๐๐ฅ๐ฅ๐ฒ ๐๐๐๐๐ฌ
The number one reason for New Space start-up failure remains fundamentally human: founders developing solutions for problems that don’t exist or markets that aren’t ready. This challenge extends beyond start-upsโeven established organizations occasionally fall into the “build it and they will come” approach, co-investing in projects without confirmed market demand.
๐๐๐ฌ๐ก ๐
๐ฅ๐จ๐ฐ: ๐๐ก๐ ๐๐ข๐ฅ๐๐ง๐ญ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒ ๐๐ข๐ฅ๐ฅ๐๐ซ
The second most common failure point involves cash flow management.
Successful New Space companies put an advance payment in contracts to cover 3rd party orders. They understand that relying solely on friends, family, or single-source funding creates vulnerability when that support inevitably reaches its limits. Also, some founders focus mainly on revenues rather than cash income.
๐๐๐๐ฉ๐ญ ๐จ๐ซ ๐๐๐ซ๐ข๐ฌ๐ก
New Space companies possess a unique advantage over traditional space organizations: agility. When founders discover that customers want a different product or service, the successful start-ups adapt quickly. This adaptability mirrors natural selection – companies that respond effectively to market feedback survive, while those that ignore customer needs join the 90%.
๐๐ก๐ ๐๐๐ญ๐ก ๐
๐จ๐ซ๐ฐ๐๐ซ๐: ๐๐๐ฏ๐๐ซ๐๐ ๐ข๐ง๐ ๐๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ฒ ๐๐ฑ๐ฉ๐๐ซ๐ญ๐ข๐ฌ๐
For New Space entrepreneurs, the failure statistics are not meant to create fear. Industry consultants and advisors bring valuable perspective on market dynamics, customer needs, and common pitfalls. Their experience can help founders navigate the gap between technical capability and market demand.
๐๐ฎ๐ซ๐จ๐ฉ๐๐๐ง ๐๐๐ฐ ๐๐ฉ๐๐๐: ๐ ๐๐ซ๐จ๐ฐ๐ข๐ง๐ ๐๐๐ซ๐ค๐๐ญ
Despite the high failure rate, European New Space valuations continue their upward trajectory across both upstream and downstream sectors. European sovereignty concerns are creating new opportunities, with government backing increasingly supporting companies that build for both private and public sector needs.
This trend suggests that the overall market opportunity continues expanding. New Space companies that address real market needs while maintaining financial discipline can capitalize on this growing ecosystem.
๐๐ก๐ฒ 90% ๐จ๐ ๐๐ฉ๐๐๐ ๐๐ญ๐๐ซ๐ญ-๐ฎ๐ฉ๐ฌ ๐ ๐๐ข๐ฅ: ๐ ๐๐๐ฐ ๐๐ฉ๐๐๐ ๐๐๐๐ฅ๐ข๐ญ๐ฒ ๐๐ก๐๐๐ค
