Space

 Space is undergoing textbook disruption. While the term has since lost its intended meaning, disruption as defined most notably by Clayton Christensen describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.

Perspective

In the space market, new entrants are able to launch assets for 1/10th, 1/100th, and sometimes even 1/1000th of the cost of existing incumbents—creating a tremendous shift in cost structure that cannot be ignored. With dramatically improved unit economics, new space companies are not only competing for existing market share but expanding the market as a whole. Capital costs for going to space are down, Moore’s law is kicking in, and demand for Earth data is as high as ever. We’re seeing amazing companies taking advantage of the opportunity to create businesses that are fundamentally changing the way our world operates.

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