“We have lift-off.” The spiking interest in space technology and travel has coincided with Luxembourg’s adoption of rules allowing space resources to be privately owned. Space is a hot topic and NewSpace Capital is seizing this opportunity to invest in down-to-earth companies that are developing space technologies for which there are useful and profitable applications on Earth.
Bogdan Gogulan (NewSpace Capital): Down-to-Earth Investments
Who is NewSpace Capital?
NewSpace Capital is a private equity firm based in Luxembourg that is identifying the potentially stellar investment opportunities offered by the growth in deep-tech, space companies. The space industry now spans multiple markets; has become integral to our everyday lives and is critical to the growth of the global economy. The technology in satellites orbiting our planet provides the essential space infrastructure for our communications, networking, imaging, weather monitoring and navigation to only name a few. The 60-year-old space industry has been significantly transformed in the last decade by cheaper access to space, the emergence of satellite platforms for lower earth orbit, the miniaturization of electronics, the changing regulatory environment and the booming demand for commercial and consumer applications. NewSpace Capital focuses on investing in technologies that are valuable to customers on Earth.
“Space holds the key to further digital transformation and is becoming a major positive element in the technological and economic transformation of our society.”
What attracted NewSpace Capital to Luxembourg?
Space holds the key to further digital development and is becoming a major contributor to the technological and economic transformation of our society. Luxembourg has led the way with its space law that came into effect on 1 January 2021. The Duchy is Europe’s first adopter of a legal and regulatory framework that provides the launchpad for space resources utilisation. Luxembourg is creating an ecosystem that benefits a broad range of space start-ups including private equity investors like NewSpace Capitalwhich also benefits from the long-standing expertise of the country in the operations of satellites with the presence of SES, one of the worldwide leading operators of geostationary satellites.
What has been your experience of Luxembourg?
NewSpace Capital has the advantage of Fuchs Asset Management acting as its AIFM. FAM’s entrepreneurial spirit significantly helps our operations in Luxembourg. At the heart of Europe, the Duchy offers stability and a robust regulatory environment that is attractive to the establishment of innovative private equity funds. Luxembourg is certainly an expensive jurisdiction and imposes some administrative burdens that could be alleviated through the digitalization of processes, but the advantages greatly outweigh. The image of Luxembourg internationally is also very important for investors. The fact that Luxembourg is at the heart of Europe, home to the European Court of Justice and the European Investment Bank confirms that the right ecosystem is in place. International cooperation between Luxembourg and other countries plays an important role in the choice of jurisdiction too. Many countries look towards Luxembourg and the way it placed itself at the heart of the global space economy, so establishing our headquarters here was a very natural choice.