Again “Newspace Industry Report Germany” shows, the 92 startups in the New Space ecosystem in Germany generated revenues of 873 million euros in 2018. This means that the New Space sector now accounts for around 30 percent of total space technology revenues in Germany.
In 2020, exactly half of the 46 startups were active in the upstream part of the value chain. These include companies whose core business is manufacturing hardware or developing software for it, conducting and supporting rocket launches, further exploring space, extracting resources in space, and supporting logistics. A total of 38 German New Space Hardware projects were launched into space between 2015 and 2021.
In contrast, the 35 downstream startups (38 percent) focus on activities such as further analyzing data acquired in space, developing products for end users, or organizing the downlink of communication data from satellites. The report classifies the remaining 11 startups (12 percent) as "other" business activities, focusing on consulting services related to space, engineering, project management, R&D, or defense.
Who founds spacetech startups?
The German research and higher education landscape offers fertile ground for startups, as 25 percent of the companies were founded as spin-offs from German universities, research institutions, or companies. The academic environment in southern Germany plays a particularly important role, with over half (57 percent) of the spin-offs originating from there. Another 26 percent of the companies surveyed are or were participants in an incubator or accelerator program such as Exist or ESA BIC. And 12 percent of New Space ventures are both spin-offs and incubatees.
Who invests in New Space?
A look at the investment rounds completed by the New Space startups examined reveals a picture dominated by business angels. The study examined a total of 54 financing rounds completed over the past 20 years. According to the findings, angel investors, friends and family, or the founders themselves account for 50 percent of all investors. The other half consists of institutional investors. Of these, 22 percent are considered corporate investors, which primarily encompasses parent-subsidiary relationships or majority stakes as well as external corporations. Another 10 percent of investors are banks and private lenders, 9 percent are venture capital firms, and 4 percent are government investors.
Munich startups lead the new space industry
According to the study, the greater Munich area is the Hotspot for new space companies in Germany. 35 percent of all new space startups are part of the Munich ecosystem. Across the three value-added sectors, 33 percent of upstream startups, 34 percent of downstream startups, and 45 percent of young companies in the "other" sector are located in the state capital.
The next largest clusters in the upstream sector are located in Berlin (22 percent) and Stuttgart (11 percent). In the downstream segment, the Rhine-Main region (20 percent) and the greater Bremen area (14 percent) play an important role. Startups in the "Other" sector are evenly distributed, with 18 percent each located in the greater Cologne area, the Rhine-Main region, and Berlin.
About the study
The “Newspace Industry Report Germany” The report includes over 100 German new space companies, 92 of which were financially analyzed. The companies were selected based on several criteria, including being founded in 2000 or later and having published annual financial statements for the 2018 fiscal year by November 2020. The data underlying the report comes from various sources, such as databases and company announcements. In addition, a survey of German new space startups was conducted between December 2020 and February 2021.
