Alpine Space Ventures: Investing in the Future of Space
In the late 2010s, Bulent Altan and Joran Voelklein, former SpaceX engineer and investor respectively, noticed striking similarities between the European space sector and the early days of American NewSpace. Intrigued by the potential for growth in both the US and Europe, Altan and Voelklein established Alpine Space Ventures in Munich, Germany in 2020. Their goal was to capitalize on the burgeoning space industry by investing in innovative startups.
To kickstart their venture, the duo closed their first fund at a remarkable $184 million, making it the largest first-time VC fund dedicated to space globally. Their impressive list of limited partners includes over 20 early SpaceX employees, as well as renowned institutions such as the European Investment Fund and the NATO Innovation Fund. With this capital, Alpine Space Ventures plans to make 10-15 strategic investments, with a particular focus on European companies.
Alpine Space Ventures’ investment philosophy is heavily influenced by SpaceX’s success. Altan highlights that they seek to align themselves with SpaceX’s accomplishments and invest in sectors that benefit from its satellite technology. By focusing on component builders and satellite manufacturers, Alpine aims to tap into the growing demand for satellite buses and components driven by telecommunications and Earth observation. This approach allows them to avoid direct competition with SpaceX while capitalizing on the expanding space industry.
The current portfolio of Alpine Space Ventures consists of five companies, including K2 Space, a Los Angeles-based startup aiming to build massive satellites for a Starship-enabled future. With almost 1,000 pitches received in the past two years, Voelklein emphasizes the team’s ability to identify missing links in the value chain due to their strong technical background. This expertise is evident in Alpine Space’s technical director, Catriona Chambers, who led avionics for Starship during her time at SpaceX.
Venture investing in the space sector presents unique challenges. Altan acknowledges that aligning technical promise with venture timelines is the most difficult aspect. However, Alpine Space Ventures’ industry experience and understanding of the space sector have convinced their investors to trust their expertise. Furthermore, the firm takes on the responsibility of educating politicians and prospective limited partners about the industry’s rapid hardware iteration approach, which may seem unconventional to some.
Another obstacle faced by deep tech investors is the substantial upfront capital required by space startups. In the US, companies often rely on funding from the Department of Defense and NASA to advance their technology from research and development to minimum viable product stage. More established companies, like SpaceX, benefit from significant contracts that drive innovation and enhance the nation’s capabilities. Europe is now recognizing the importance of investing in its own indigenous space sector and is starting to follow suit.
Closing the fund took longer than expected due to geopolitical events and the end of the zero-interest rate phenomenon. Nevertheless, Alpine Space Ventures surpassed its target mark of €160 million, indicating strong investor confidence in their vision. Altan sees this as a positive outcome, emphasizing the importance of Europe developing its own capabilities to foster a successful partnership with the US.
Alpine Space Ventures is well-positioned to make a significant impact on the future of space. With their substantial fund, strategic investments, and a focus on key sectors, they are poised to support the growth of the space industry in both Europe and the US. As the demand for satellite technology continues to rise, Alpine’s portfolio companies stand to benefit from their association with SpaceX and contribute to the evolving supply chain in the space sector.
