In this episode of Commercial Space Transformers SpaceNews Senior Staff Writer Jason Rainbow speaks with Tess Hatch, Managing Partner, Stifel Venture Banking.
Our conversation with Tess Hatch covers the evolving landscape of space investment and commercialization. Hatch, a former venture investor now in a banking role, discusses the shift in financing for space startups, moving from equity investments to debt financing. She highlights a significant trend where many space companies are now branding themselves as defense tech firms due to updated government contracting methods, making defense-focused business models more attractive to investors.
Hatch provides a historical perspective on space investment, noting that while early high-profile exits like Skybox’s acquisition by Google in 2014 generated excitement, subsequent liquidity events were limited. The 2021 surge of space SPACs (special purpose acquisition companies) provided some returns but did not fully establish space as a consistently profitable venture investment sector.
She observes changes in the industry since 2017, emphasizing vertical integration and an increase in public space companies.
Hatch identifies some overhyped sectors, questioning the market demand, while strongly supporting the future of in-space manufacturing, which she believes could revolutionize industries such as fiber optics and pharmaceuticals. Despite her enthusiasm, she acknowledges that the timeline for profitability in these advanced space technologies remains uncertain.
About Commercial Space Transformers
The SpaceNews Commercial Space Transformers video series gives viewers a behind-the-scenes look at the people and companies driving the space industry’s commercial transformation. The weekly series features 15-minute down-to-Earth interviews with key players in space, ranging from the executives at the helm of some of the market’s biggest disruptors to the bankers and investors helping to finance their journey. Join SpaceNews Senior Staff Writer Jason Rainbow as he embarks on a mission to learn where the fast-evolving space industry is heading next.
Watch a new episode every Tuesday on SpaceNews.com and on the SpaceNews YouTube channel.
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