ORIGINAL ARTICLES
The New Space Economy and New Business Models
Rosa Maria Parrella, Germana Spirito, Cristiana Cirina,
and Maria Cristina Falvella
Agenzia Spaziale Italiana, Rome, Italy.
ABSTRACT
The recent change of paradigm in the space sector, due to the
advent of the new space economy and to the entry of several
private actors and investors in a sector, historically mainly
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
funded through institutional investments, has led to a different
approach to financing activities. In particular, the spin-off effect
(the use of technologies from space to nonspace areas) has al-
lowed spreading economic impacts also to nonspace sectors,
creating new business opportunities and pushing a new invest-
ment wave from nonspace actors willing to invest on space
applications and start-ups. Public sector plays a key role in
creating the right conditions for the development of the space
economy and in accompanying the business community in the
innovation path (from the invention to the market product,
application or service). Indeed, the approach to funding research
activities is changing. Also, an institution like the European
Union is adopting new models, an example is given by Horizon
Europe, which, according to recent discussions at the European
level, will foresee private funds among the different investments’
instruments. The Italian model is at the forefront in Europe for
space economy and financial initiatives, as it encompasses
business angels, venture capitalists, corporates, and public pri-
vate partnerships. The article includes a description of activities,
which maximize the space impacts on society, including tools
such as new partnership approaches, development of innovation
ecosystems, and leverage of investments from the private capital
market. The authors provide a focus on the Italian model and a
comparison with the larger European context.
Keywords: Europe, space economy, financial initiatives
INTRODUCTION
Over the past years, with the development of the New
Space and the significant growth of the venture capital (VC)
market, the private investment in space has increased and
reached unprecedented levels, and so have done the number
of private investors and privately funded space ventures.
Article presented at the 71st International Astronautical Congress—The CyberSpace Edition, October 12–14, 2020. ª 2020 by the International Astronautical Federation.
DOI: 10.1089/space.2021.0020
This attractiveness of space companies* has been driven by
technological advancements and lower barriers to entry
(including lower launch costs and the development of small
satellites) as well as by the potential deployment of mega-
constellations.
New domains are also attracting significant private in-
vestments, such as microlaunchers and commercial space-
flight, as demonstrated by the first successful launch of a
venture-backed small rocket by Rocket Lab in 2018. Com-
mercial manned spaceflight might also become a reality in
the coming years with the Blue Origin and Virgin Galactic
projects.
The traditional business model in the space sector is ex-
periencing a disruptive transformation. The traditional
market, characterized by institutional/governmental cus-
tomers, is changing toward a ‘‘mixed’’ space market not
limited to superpowers and multinationals, but open to
emerging countries.
New actors access the space sector and related services:
private investors, start-ups, research institutes, and even in-
dividual users with their smartphones.
This is made possible because reusable space launcher
systems and other technological shifts, such as digitalization,
miniaturization, artificial intelligence, 3D printing, and ad-
vanced materials, are reducing the cost of accessing and using
space.
The public sector has a strong role to play in stimulating
market demand and technology uptake by promoting more
favorable policies and regulatory frameworks.
How public funds in the European Union (EU) could be
deployed to attract private investment and otherwise catalyze
the development of the sector, considering also that such
public funding should be entitled to achieve adequate returns.
Which instruments could help in promoting private invest-
ment in the sector?
*A space company can be described as ‘‘a company involved in the space economy,
and providing goods and services related to space.’’ Space economy, then, has been
defined as ‘‘all public and private actors involved in developing and providing space-
enabled products and services. It comprises a long value-added chaining, starting
with research and development actors and manufacturers of space hardware and
ending with the providers of space-enabled products and services to final users.
MARY ANN LIEBERT, INC.  VOL. 10 NO. 4  2022 NEW SPACE 291
 PARRELLA ET AL.
Although space used to be synonymous with government
spending, today the sector sees the emergence of new private
actors who see commercial opportunities in space exploration
and exploitation.
PRIVATE FUNDING OF SPACE ACTIVITIES
AND UTILIZING FINANCIAL INSTRUMENTS
Private investment in space companies continued to grow in
2019, reaching B$5.7 according to the Bryce report Start-up
Space 2020. Current pieces of evidence, then, show unprece-
dented investments from angel and VC funds in space start-ups
and recently established firms, although the amounts still pale
compared with public funding. Commercial satellite telecom-
munications, in particular, have paved the way for private fi-
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
nancing, as the high profitability of satellite services over the
past 15 years has allowed operators to benefit from classic fi-
nancial schemes to develop their activities. Most satellite op-
erators in OECD countries, then, have become publicly traded
corporations, and they also have resorted to project financing,
with syndicates of banks providing loans. This successful trend
in telecommunications has led to similar results in other space
domains. For example, in the past 10 years, several companies
have launched initial public offerings of stocks, using the
proceeds to build their next generation of earth observation
satellites (e.g., Digital Globe in the early 2010s).
The main sources of funding for new firms usually are the
founder’s own funds, with investments from family circles, bank
loans, equity capital (including business angels and venture
capitalists), and then government support. A relatively new
source of private capital comes from large aerospace and defense
firms, which have all set up their own VC funds in the past years,
to invest in start-ups involved in software development, artificial
intelligence, augmented reality, sensors, and autonomous ve-
hicles in particular. Some of the most active actors include, for
example, Boeing’s HorizonX Ventures, Lockheed Martin Ven-
tures, Airbus Ventures, Thales Corporate Ventures, and the
Dassault System Venture Fund.1
Hereby, a panoramic of space investors typologies and
initiatives is offered.
Angel investors typically are individuals or families that have
accumulated a high level of wealth and seek potentially high
returns by investing in companies during their early stages. In
recent years, angels have also participated in syndicates, pooling
investments with other angels, and VC firms to provide more
funding to start-ups. This model enables an angel to invest in more
companies and spread risk. Incubators and accelerators can also
be included in this investor group because they provide equity as
well as mentoring and networking at the preseed or seed stage of a
start-up. Investment by angels into start-up space ventures is
292 NEW SPACE 2022
usually in the form of straight equity into the company and it often
ranges from $50,000 to more than B$1. There is a special category
of angel investor in the space ecosystem, consisting of ultra-
billionaires who have personally staked investment (+M$100
level) in new space companies. They have already made their mark
in technology-driven enterprises, and include Jeff Bezos of Blue
Origin (Amazon), Paul Allen of Stratolaunch (Microsoft), and Elon
Musk of SpaceX (PayPal) who also has recently reached the record
of the first private launch with 2 NASA astronauts on board of
International Space Station. Most of these last companies are
privately funded. According to the available data, their capitali-
zation is considered important in view of their ongoing large
projects (launchers and space exploration modules) and com-
mercial contracts particularly with the U.S. government.
Venture capital firms are groups of investors that invest in
start-up, early stage, and companies with high growth po-
tential, accepting a significant degree of risk. The trade of risk
for potential high returns results in a high failure rate. VC
funding has traditionally come in stages (or rounds), with a
substantial variation in the size of rounds ranging from M$2
to M$10. The form of investment is equity; consequently, the
VC firm has an equity ownership stake in the company, usu-
ally convertible to common stock in the instance of a stock
market launch or initial public offering or sale of the com-
pany, which are the typical instances of a VC’s exit.
Several space-oriented VC funds have emerged from this class
of investors. In 2017, the early stage-focused angel syndicate
space angels announced an M$50 inaugural fund, space capital,
which has invested in 9 start-up space ventures as of the end of
2019. Also, Seraphim Capital launched a space technology fund
in late 2016. Seraphim Space Fund is an M$100 space-focused
fund, whose investors include Surrey Satellite Technology,
Airbus, SES, Telespazio, Teledyne, Rolta, First Derivatives, the
British Business Bank, the European Space Agency, and the
United Kingdom’s Satellite Application Catapult.
Private equity firms manage funds of capital on behalf of
limited partner investors, typically with directly investing in
companies. They traditionally invest in established companies
at large transaction sizes, often acquiring an entire company
or a group of related companies that can merge. The funds
managed by private equity firms primarily consist of capital
commitments made by institutional investors, such as sover-
eign wealth funds, pension funds, and family offices.
Larger investment firms, which typically have multi-billion-
dollar investment funds from which they draw funds, have
shown interest in space over the past 15 years, especially in the
telecommunications industry or government contracting. This
is the case of Blackstone, Columbia Capital, Permira, Apax, and
the Carlyle Group. These firms tend to invest magnitudes over
MARY ANN LIEBERT, INC.
 THE NEW SPACE ECONOMY AND NEW BUSINESS MODELS
M$100, usually in firms that are ideal candidates for debt re-
structuring. This trend has been the case for several large
commercial satellite operators.
Corporations have often provided the funding necessary to
bring space-based programs to initial operating capability, as
well as to sustain ongoing programs. Corporations usually
invest internally, in R&D, in manufacturing, in operations and
processes, and in many other areas to enhance capabilities to
create or strengthen an existing expertise or advantage. A
corporation may also provide funding for a venture, usually in
the form of straight equity. Recently, the industry has seen a
variety of corporations investing in space, with ESRI and
Airbus and others investing $70 million in Hawkeye 360.
Then, SoftBank, Virgin, Coca-Cola, Intelsat, Airbus, Qual-
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
comm, and Hughes Network Systems, Totalplay, and Bharti
Enterprises invested a total of B$3 in OneWeb from 2015 to
2019. In February 2015, Google invested M$900 in SpaceX,
‘‘to support continued innovation in areas of space transport,
reusability, and satellite manufacturing.’’
Corporations may also acquire firms. An example is Northrop
Grumman that acquired Orbital ATK for B$7.8 in mid-2018.
These transactions are more typical of the merger and acquisi-
tion activity for established companies, even if corporations
have recently also acquired firms that fit the model of start-up.2
Banks have been heavily involved in providing and facili-
tating funding for space-based programs of large established
firms, such as Geostationary Earth Orbit satellite operators,
during the past 20 years. Commercial banks based in the United
States, such as Wachovia, Wells Fargo, and Citibank, and Eu-
ropean banks, such as Deutsche Bank, BNP Paribas, and ABN
AMRO, have provided debt financing at a magnitude of maxi-
mum B$1 per funding event. Most of the companies financed
are companies with large satellite CapEx requirements, such as
Intelsat, SES, and Inmarsat, for which multiple GEO satellites are
required at a cost of *M$300 each to build, launch, and insure.
In addition, government banks, such as U.S. Export-Import
Bank and COFACE of France, have provided debt funding for
several satellite systems. The purpose of these banks is to sup-
port deals benefiting domestic enterprises. For example, the
Export-Import Bank may provide financing to benefit an export
deal involving a U.S. satellite manufacturer, and it has provided
multihundred million-dollar debt financing satellite operators,
including ViaSat of the United States, AsiaSat and Asia
Broadcast Satellite in Asia, and Spacecom in Israel. COFACE has
backed the debt obligations of several satellite constellations,
including O3b, GlobalStar, and Iridium. Banks are less likely to
have a major role in providing financing for start-up ventures.
Public private partnership (PPP) is used as a term to de-
scribe schemes that are ‘‘partnerships between the public
sector and the private sector (industry), for the purpose of
delivering a project or a service traditionally provided by the
public sector.’’ PPPs can come in many forms dependent on a
number of variables that are defined in the contract, including
the designation of responsibilities, costs, risks, and the degree
of involvement of the public and private actors at the different
stages of a project. Four common characteristics of PPP can be
drawn from their use in practice: (1) a long-term relationship
between public and private partners, (2) funding is sourced
from both the public and private sector, (3) an important de-
cisional role is placed on the private entity, and (4) partial
transfer of risk from public to private parties.
PPP models have been traditionally employed by public in-
stitutions in a number of public infrastructures such as road
transportation and water management, but they do not con-
stitute a novelty in the space sector either. However, their in-
creasing rate of adoption by space agencies, and their structure
in certain regards, marks a significant change in public–private
space sector relationships. Under the PPP model, the private
sector is further incentivized to optimize its design and build
methods, finance, life-cycle, cost of operations, and mainte-
nance, as well as maintaining a high customer/market focus to
maximize revenue.3 These new dynamics offer an interesting
opportunity for governments to consider more ambitious
partnerships with industry and to better share costs and risks
with the private sector provided that a more profitable business
can be developed and that agencies can preserve their strategic
role.
A proof of this positive trend is given by NASA that, in July
2019, to encourage the new ideas and technologies required to
make the Artemis and subsequent Moon to Mars programs
viable, has selected 13 U.S.-based companies for 19 partner-
ships in 7 categories: advanced communications, navigation
and avionics, advanced materials, entry, descent and landing,
in-space manufacturing and assembly, power, propulsion,
and other exploration technologies. The selected companies
range from small businesses to massive aerospace corpora-
tions. The selections were not necessarily made based on
specific NASA needs, but with the intent to advance the U.S.
space sector as a whole.4
NEW PUBLIC SUPPORT INSTRUMENTS
IN EUROPE
Thus, supporting investment and entrepreneurship in the
space sector has become a high-level objective of most Eu-
ropean and national institutions and several new initiatives
have been recently introduced (Fig. 1).
Figure 1 shows an overview of space-focused financial
instruments in Europe, gathering both European Space
MARY ANN LIEBERT, INC.  VOL. 10 NO. 4  2022 NEW SPACE 293
 PARRELLA ET AL.
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
Fig. 1. Overview of space-focused financial instruments in Europe and estimated annual funding volume. ESA funding represented in this
graphic does not include technology developments carried out as integral part of specific development programs. Source: European
Commission.5 ESA, European Space Agency.
Agency (ESA) and EU’s instruments, together with private
sources. It is soon evident the importance of the public
help for companies at the early stages when they rely more
on the support of programs such as the EU Horizon 2020 or
ARTES or other ESA projects, while later in life they tend
to consider a larger and more various range of opportu-
nities, such as accelerators, incubators, business angels,
and VCs.
In 2019, space agencies continued to introduce new pro-
grams building on new procurement schemes and public–
private partnerships. More in detail, in Europe, ESA continued
to explore new approaches to procurement involving a more
prominent role for private actors. For example, following the
SPACE19+ ministerial council, the agency took the decision to
engage in active space debris removal in an innovative way.
ESA adopted a service-oriented approach, also to encourage
the development of In Orbit Servicing (IOS) solutions at large
and demonstrate the feasibility of commercial IOS missions.
ESA will eventually award space debris removal services
contract to the Swiss start-up ClearSpace with the objective to
294 NEW SPACE 2022
deorbit a 100 kg Vega secondary payload (Vespa) upper stage
in Low Earth Orbit.
ESA also continues its long-standing support to start-ups in
the space sector that encompasses incubators, competitions,
funding, and other support mechanisms.
ESA’s Business Incubation Centers (BICs) have long sup-
ported start-ups in the space sector. The program now counts
20 centers across Europe and >300 start-ups currently in in-
cubation. Historically, a total of 700 start-ups have been in-
cubated and have been provided with financial, technical, and
business support. ESA’S BIC program remains one of the
primary sources of European start-up support.
Multiple ESA funding schemes including ‘‘Kick-start ac-
tivities’’ have also been launched since 2017 to help small and
medium enterprises (SMEs) or start-ups looking for early
funding (up to Me 60).
The European Investment Bank and the European Com-
mission6 introduced a fund of Me 200 involving a mixture
of funding mechanisms to boost investment in the sector
including:
MARY ANN LIEBERT, INC.
 THE NEW SPACE ECONOMY AND NEW BUSINESS MODELS
. Me 100 loan earmarked to partially support ArianeGroup’s
share of development costs through an innovative fi-
nancing structure that will be contingent on Ariane 6’s
commercial success, once operational.
. Me 100 investment in VC funds across the EU that
support companies commercializing new products and
services in the space sector. This space equity pilot is
funded under the EU InnovFin program to support in-
novation and growth in European SMEs.
The EU, then, from a more general perspective, is more
prominently integrating objectives related to supporting private
investment and entrepreneurship throughout its involvement in
the space domain. For example, the European Commission
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
considers ‘‘improving access to risk financing for space SMEs,
including innovative start-ups, and emerging business models’’
as a core objective of the EU Space Programme.7 The EU mul-
tiannual financial perspectives for the 2021–2027 period in-
clude the financing instrument namely InvestEU, which has
been further integrated with some funds made available within
the next generation EU funding. The main objective of the In-
vestEU fund is to mobilize public and private investment using
an EU budget guarantee. The fund will support 4 main policy
areas: (1) sustainable infrastructure; (2) research, innovation,
and digitization; (3) small and medium businesses; and (4) social
investment and skills, and it is expected to mobilize at least
650Be in additional investments between 2021 and 2027.
Furthermore, the EU put in place dedicated instruments to
SMEs such as the COSME instrument, and also dedicated
measures for SMEs within the research programs, both in the
past ones and also in Horizon Europe, the EU research pro-
gram for the next 7 years 2021–2027. This program, also
foresees a close cooperation with Invest EU.
In this context, it is important to recall also the important
EU initiative introduced in 2018, Copernicus and Galileo
Masters. In 2019, these initiatives counted >3100 partici-
pants from >70 countries and led to *Me 4.3 in financial
prizes. The masters have been a standout method to finance
innovative Earth Observation (EO) and Global Navigation
Satellite System (GNSS)-based solutions, developments, and
business ideas.
National actors are also engaged in supporting investment
and entrepreneurship in the space sector. The French space
agency (CNES) launched the CosmiCapital fund that will be
managed by CapDecisif Management and aims to raise Me
100 that will then be invested in European space start-ups
starting early 2019. This VC fund in partnership with ESA and
IFREMER will focus on private companies related to the space
economy. The first 5 investments are expected to occur in
2020. Other countries such as Germany hold similar initiatives
to accelerate the development of start-ups in accessing com-
mercial viability. The INNOspace Masters initiated by DLR, for
example, provides an annual competition to promote the
development of space technologies. In 2019, 316 participants
submitted 117 ideas out of which 15 were selected as winners.8
ESA (ARTES PARTNERSHIP PROJECTS)
The key objective of the Partnership Projects Generic Pro-
gramme Line is to develop and validate/demonstrate inno-
vative satellite telecommunication systems, spacecraft,
platforms, payloads, and ground segments in line with ESA
long-term plan and in partnership with a partner (hereinafter
referred to as ‘‘Partner’’). The Partner will share the project’s
costs and risks and will bring the system into a representative
operational environment with the aim of introducing new
capabilities and/or developing new services.
The innovative features developed under a project con-
ducted within the Partnership Projects Generic Programme
Line are essential for the realization of strategic needs and/or
the Partner’s short or longer term business case.
In particular the projects aim at:
. federating industry around large-scale projects achieving
competitive leap forward and economic impacts,
. derisking partners investments answering to market
needs,
. developing sustainable end-to-end systems up to in-orbit
validation, where applicable, and
. using efficient management approach, supporting in-
dustry, tailored to commercial practices, adapted to the
target market or partner needs and the needs and goals of
the project.
Each project initiated in the frame of the Partnership Pro-
jects Generic Programme Line will be based on a partnership
between ESA and a Partner, whereby that Partner will be
expected to cover the funding for its part of the project and
assume the corresponding market risks.
Partnership Projects enable greater risk sharing where ESA
bears the risks related to the development of innovative so-
lutions and the operators assume the commercial risks in
answer to market needs. Without this partnership approach,
many projects would not have emerged because they would
have been perceived as being too technically or commercially
risky.
ESA’s involvement ensures high quality and performance,
supporting primes and subcontractors while offering a tai-
lored and efficient approach based on commercial best
practices.
MARY ANN LIEBERT, INC.  VOL. 10 NO. 4  2022 NEW SPACE 295
 PARRELLA ET AL.
In line with the objectives of the Partnership Projects Generic
Programme Line, each project will introduce an innovative
contribution, forming a functional part of the satellite system
that is essential to enable the mission. Each project may cover
the satellite system design, the development activities for phases
B/C/D/E1 including a testing/validation/pilot phase activities.
ARTES Partnership Projects assist in identifying, defining,
and undertaking major new ARTES programmatic activities to
develop innovative satellite telecommunication systems and
items in line with ESA strategic objectives and in partnership
with a private or public partner to support a strong and
competitive space industry. They also aim to develop projects
that span the length of the value chain from new infrastruc-
ture development through to the provision of new services.
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
Potential partners are satellite operators and service pro-
viders, satellite/system integrators, primes and their entire
supply chains, ground equipment manufacturers and their
supply chains, and user communities.
So far, ESA has implemented several partnership projects
through its ARTES program including Alphasat, SmallGEO,
Hylas-1, and EDRS.
THE ITALIAN MODEL
The role of the Italian Government in the space industry has
always been crucial both as stimulator of programs and ac-
tivities and as direct investor.
Italy participates in European space programs through the
contribution to the EU budget and to ESA, where it currently is
the third contributor. Only in 2020 the country invested in
space activities Me 680 (2020 contribution to ESA and in-
vestment in national initiatives).
The Italian Government is also playing its role in stimu-
lating the born of new initiatives, with private actors and
investors, trying to attract private capitals.
Italian PPP: Ital GovSatCom—Italian Space Economy
Strategic Plan
The new program for satellite telecommunications called
Ital-GovSatCom represents 1 of the 5 pillars in the Italian
Space Economy Strategic Plan and it is considered the first
real example of PPP in the field of space activities. The legal
framework foresees a stable mechanism for sharing risks and
responsibilities between public and private actors.
The assignment of the contract has been announced in July
2019. The temporary groups of companies, which awarded the
contract for the first phase (R&D), are formed by Thales Alenia
Space Italy, Leonardo, Sitael, and Space Engineering. Thales
will build the satellite and will lead a consortium of domestic
companies.
296 NEW SPACE 2022
It is based on a private and institutional participation, de-
fined in a collaboration agreement signed between MISE and
the Italian Space Agency (ASI), and by a memorandum of
understanding signed by MISE and by 12 regions (Abruzzo,
Basilicata, Campania, Emilia Romagna, Lazio, Lombardy,
Piedmont, Puglia, Sardinia, Tuscany, Umbria, and Valle
D’Aosta) and by the Autonomous Province of Trento, to en-
courage the development and competitiveness of the Italian
space system and guarantee innovative services for institu-
tions and for the commercial market.
The Space Economy Strategic Plan provides for an invest-
ment of *Be 4.7, of which *50% is covered with public
resources.
Ital-GovSatCom integrates into a single system action, a
multiregional cooperation program, focused on the pro-
motion of innovative technologies, services, and products
by companies in the respective territories, acting mainly on
the side of innovative demand through the activation of
innovation partnership mechanisms (art. 65 of the DL n. 50/
2016 in Italy’s legislation).
ASI has launched a partnership for innovation (PPI) with the
aim of creating and activating an innovative satellite system,
called Ital-GovSatCom, for the provision of telecommunication
services with security, resilience, and reliability characteristics,
such as to allow its use for institutional purposes, in defense,
security, humanitarian aid, emergency response, or diplomatic
sectors. The mass-market ComSatCom services do not guar-
antee sufficient robustness and availability, whereas MilSat-
Com services are both too expensive and too difficult to be
implemented for conventional use.
The project requires a public qualified demand for services
and products. New studies show that the use of bandwidth will
grow in the next years. In fact, a study commissioned by the
European Commission to PWC, the ‘‘Satellite Communication
to Support EU Security Policy and Infrastructures Final Re-
port,’’9 analyzes the necessary requirements to offer secure
and reliable communication services for EU institutions. The
result is that from 2020 to 2030, there will be a bandwidth use
growth for all user community and the market solution will
not guarantee sufficient security, whereas MilSatCom solu-
tions’ cost of service is very high.
As SATCOM capabilities are scarce and imply significant
public investments by member states, their development re-
quires affordable opportunities for innovative governance,
R&D, and procurement schemes ensuring synergies among
different types of actors.
To this end, the National Smart Specialization Strategy
(SNSI) identifies priorities for investment in research, de-
velopment, and innovation that complement the resources
MARY ANN LIEBERT, INC.
 THE NEW SPACE ECONOMY AND NEW BUSINESS MODELS
and productive capacity of territories to build comparative
advantage and sustainable growth in the medium and long
term. In 2014–2020, research and innovation strategies for
smart specialization are an ex ante conditionality for the
use of European structural and investment funds resources
devoted to the objective ‘‘strengthening research, tech-
nological development, and innovation.’’ The SNSI is im-
plemented through specific initiatives of the National
Operational Programmes 2014–2020 for research and in-
novation (NOP R&I) and for enterprise and competitiveness
(NOP I&C) and through strategic plans funded by public
resources from cohesion policy, national and regional or-
dinary funds, and private resources.
The public innovative demand-side policy plays an im-
Downloaded by 81.203.115.242 from www.liebertpub.com at 03/05/23. For personal use only.
portant role, in fact the strategy identifies the innovation
partnerships and the precommercial procurement as suitable
tools for the implementation of the operational plans drawn
up for each area of identified interest.
Primo Space VC
Primo Space, the early stage fund launched by Primomiglio
sgr in summer 2018, originally under the name of Astra
Ventures, with a collection target of Me 80, is the first Euro-
pean fund that was selected by the European Investment Fund
to obtain the support of the new Me 100 VC program, called
InnovFin Space Equity Pilot, envisaged as part of the InnovFin
initiative to support innovation and the growth of European
SMEs specializing in space technologies.
The fund received an investment of Me 30 from the Eur-
opean Investment Fund (FEI). The fund will have as advisory a
management team, supported in the scouting and advisory
activities by the E. Amaldi Foundation (focused at promoting
and supporting scientific research aimed at technology
transfer, starting from the space sector).
The InnovFin Space Equity Pilot program is 1 of the 2
components of the close partnership between the European
Commission and EIB to finance Me 200 of investments in the
European space sector. It is the first ever space equity pilot and
first EIF fund based in Italy.
CONCLUSIONS
Space becomes a significant driver of innovation in Europe.
Public funds in the space sector can be used to attract private
investments and catalyze the development of the sector. The
private capital can contribute to the development and eco-
nomic growth.
The disruptive change caused by the New Space phenom-
enon has brought to an emergency of new business models
able to accompany the development of space activities and the
need of space actors, in this new framework.
The arguments shown in the article demonstrate that Eur-
ope and Italy are reacting. Public actors, in particular, are
trying to accept the challenge, modifying their previous role,
and adapting to what private actors are requiring. Agencies
and governments, in fact, are changing their position of being
only investors of the national markets and are moving toward
the role of confidence builder, meaning the creators of ini-
tiatives, instruments, business models, and opportunities
aiming at facilitating the supply and demand matching
among private actors in the space sector.
AUTHOR DISCLOSURE STATEMENT
No competing financial interests exist.
FUNDING INFORMATION
No funding received.
REFERENCES
1. Organization for Economic Cooperation and Development (OECD), The ongoing
transformation in ‘ The Space Economy in Figures: How Space Contributes to the
Global Economy’’, OECD Publishing, Paris, https://doi.org/10.1787/c5996201-en, 2019.
2. BryceSpace and Technology, Start-up Space, A BryceTech Publication, Washington,
DC, Mar 9, 2020.
3. ESPI. ESPI Report 70—Evolution of the Role of Space Agencies, ESPI, October 2019.
4. https://newatlas.com/nasa-public-private-partnerships-accelerate-us-space-
sector/60865/, (Lat accessed on October 2020).
5. Innovation Finance Advisory, European Investment Advisory Hub, European
Investment Bank’s advisory services for:The European Commission, The Future of
European Space Sector, DOI: 10.2867/484965, European Investment Bank, 2019.
6. European Investment Bank. https://www.eib.org/en/press/all/2020-013-european-
commission-and-european-investment-bank-group-join-forces-to-boost-space-
sector-investment-with-eur-200-million-of-financing, (Last accessed on October 2020).
7. European Commission. The New EU Space Programme at a Glance. https://
ec.europa.eu/commission/sites/beta-political/files/budget-june2018-space-
policy_en.pdf, (Lat accessed on October 2020).
8. ESPI, ESPI Report 73-Space Venture Europe 2019, ISSN: 2218-0931 (print)$2076-
6688 (online), ESPI, July 2020.
9. PWC, Ecorys, European Commission. Satellite Communication to Support EU
Security Policy and Infrastructures Final Report, DOI: 10.2873/48575, European
Commission, 2016.
Address correspondence to:
Rosa Maria Parrella
Agenzia Spaziale Italiana
Via del Politecnico snc
Rome 00133
Italy
E-mail: rosa.parrella@asi.it
MARY ANN LIEBERT, INC.  VOL. 10 NO. 4  2022 NEW SPACE 297