Attracting Private Investment for Lunar Commerce: Toward Economically Sustainable Development

1. Network & Space Systems Space Exploration Attracting Private Investment for Lunar Commerce:Toward Economically Sustainable Development Rutgers Symposium on Lunar Settlements 7 June 2007New Brunswick, NJ Paul Eckert , Ph.D. International & Commercial Strategist The Boeing Company – IDS – Space Exploration

2. Roundtables revealed connections. www.spacecommerceroundtable.com • Roundtable 1 • Dallas, Texas – June 2005 • Broad survey of lunar-related opportunities • Roundtable 2 • Houston, Texas – Oct. 2005 • Focus on lunar-related solar power, propellant, media, robotics • Roundtable 3 • Las Vegas, NV – July 2006 • Shift focus to entire Earth-Moon economic system • Investment Summits – 2007 and onward Boeing Photo Attracting Private Investment 2

3. Roundtables expressed global views. www.spacecommerceroundtable.com Space Commerce Roundtable Space Frontier Foundation National Space Society Boeing Photo Attracting Private Investment 3

4. E C O N O M I C G R O W T H Space Companies: Established Space Companies: Startups Non-Space Companies Investors Energy Platforms Surface Services Information Experts/Partners: Government, Academia, Associations Roundtables yielded insights. Increasing Investment While Reducing Risk Ventures Multiple-Use Applications Demonstrations Research Entrepreneurial Innovation Dialogue Attracting Private Investment

5. More private investment is essential for commercial growth. • Problems facing space commerce are financial as much as technical. • Commerce could lower costs and increase availability of products and services, but public funding has not been enough to get things started. • A strategic move is to bring more investors into space commerce. • “Angels” are most likely to be interested in early-stage, high-risk, high-opportunity projects; larger investors usually get involved later. • Angel investors: • listen to other investors, more than to analyst reports or entrepreneurial pitches • prefer invitations from people they already know • specialize and want opportunities expressed in familiar terms • have many opportunities to choose from Attracting Private Investment

6. Investors are telling uswhat they want. • Space Investment Summit • New York City – Financial District – 16 & 17 April 2007 • Co-Hosts: Space Commerce Roundtable, Space Frontier Foundation • Supporting Organization: National Space Society • Space Venture Finance Symposium • Dallas TX - 24 May 2007 • Host: National Space Society • Supporting Organizations: Space Commerce Roundtable, Space Frontier Foundation, and Others • Collaborative Investment Event • California - Autumn 2007 • Coalition: SCR, SFF, NSS, California Space Authority, Alliance for Commercial Enterprises in Space (ACES), NASA Space Portal, Etc. Attracting Private Investment

7. Investors want to manage risk. • Market Size & Breadth • Risk that market will not be sufficiently large or accessible • Residual Value • Risk of insufficient value remaining if project fails • Competitive Assessment • Risk of competitors’ taking market • Funding Availability • Risk that capital will be unavailable when required • Human Factors • Risk that management team or staff will be inadequate • Technical Viability • Risk that technical approach will prove ineffective • Legal/Regulatory Constraints • Risk of adverse government action Attracting Private Investment

8. Who/Why? • Creativity • Risk-taking • Intrinsic motivation Investors want better approaches. • New product/service • Improved cost, performance, safety, reliability What? Entrepreneurial Innovation How? • Identifying opportunity • Accumulating resources • Producing product/service • Marketing product/service • Building organization • Responding to government/society Attracting Private Investment

9. Investors above all want markets. • Solar Power: EO satellites, lunar surface ISRU • Propellant: EO depot, lunar surface ISRU • Communications/Navigation: EO satellites, cislunar network • Observation: Imaging of Earth & space, ground & space sites • Media: Advertising, entertainment, archive continuum • Structures: Habitations for EO, L1, lunar surface • Robotics: Orbital Express, lunar surface efforts • Transportation/Travel: Suborbital, orbital, cislunar, lunar Attracting Private Investment

10. Transportation is a market enabler. • International Space Station (ISS) utilization could stimulate demand for transportation. • Transportation availability could encourage ISS utilization. • Fully commercial Earth-orbiting platforms are also in development, which could benefit from the ISS “first step.” • COTS is a NASA public-private partnership for commercial Earth-to-Orbit vehicle development, funding Rocketplane Kistler (RpK) & Space Exploration Technologies (SpaceX). • Many entrepreneurs view Earth-to-orbit transportation as a stepping stone to the Moon and beyond. • Robust ISS utilization could create sufficient demand for non-U.S. as well as U.S. transportation services. Attracting Private Investment

11. Interoperability expands markets. • Increased Supply and Demand • Larger supplier and customer base • Reduced Cost • Shared infrastructure & consumables • Increased competition in commercial markets • Decreased logistics overhead (i.e., fewer unique parts) • Enhanced reuse & reconfigurability (e.g., lander converted to propellant depot) • Enhanced Safety • Rescue • Repair Attracting Private Investment

12. Interoperability involvesstandardized interfaces. • Pressure vessels (any functional volume pressurized for human habitation: landers, habitats, rovers, logistics modules, etc.) • Electrical outlets and plugs • Liquid connectors for each type (e.g., water) • Gas connectors for each type (e.g., oxygen) • Data (e.g., Ethernet cables, RF/WiFi) • Airlock control panels • Spacesuit connections with habitat life support and environment control systems (servicing, recharging, umbilical operations) • Robotic manipulating mechanisms (robot to system interfaces) Attracting Private Investment

13. Assemblies: Life support Power (management, generation, & storage) Waste management Thermal management Crew interface panel (e.g., command & control station) Airlocks Command & data handling systems Components: Microprocessors Valves Tanks Filters Keyboards Software Fans Computers Pumps Batteries Solar arrays Circuit boards Antennas Interoperability involves interchangeable items. Attracting Private Investment

14. Government can encourage early market growth, within limits. • Purchase (anchor tenancy) • R&D investment • Incentives: tax credits, etc. • Legal/regulatory action: liability, property rights, etc. Content & images provided by Howard McCurdy, Roger Launius, & Thomas Matula Attracting Private Investment

15. NASA Image NASA Image Multiple-use facilities attract more customers into markets. • Costs decrease through shared infrastructure, transportation, comm/nav, power, life support, etc. • Anchor tenants (bases, observatories, etc.) pave the way for additional users. Attracting Private Investment

16. Multiple use technologies bring market profitability closer. • Earth & Moon Technology Overlap • same products/services that yield near-term profits on Earth also yield longer-term profits on the Moon • Earth Profits Near-Term • improved undersea and underground robots in the energy and mining industries • Moon Profits Later • lunar robotic factory involving multiple industries Attracting Private Investment

17. Entrepreneurial innovation offers new products and services. Transportation is a key enabler. Interoperability expands customer and supplier base. Government helps markets expand. Multiple-use facilities attract more customers. Multiple-use technologies bring market profitability closer. Market growth attracts investment, enhancing commercial sustainability. Attracting Private Investment NASA Image

18. For More Information Paul Eckert, Ph.D. International & Commercial Strategist Boeing IDS - Space Exploration 703-414-6392 paul.a.eckert@boeing.com Mark Lorimer Administrative Support Coordinator 562-233-6400 (cell) mark@eventivegroup.com Attracting Private Investment