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Welcome to the 59th edition of Deep Tech Catalyst, the channel by The Scenarionist where science meets venture!
The space industry is on the cusp of a revolutionary era, with the Low Earth Orbit (LEO) economy expanding rapidly and microgravity manufacturing promising unprecedented innovations. These advancements are set to transform various sectors, from biomedicine to materials science.
To explore these exciting developments and provide invaluable insights for founders and investors, we are excited to welcome Fathi Karouia, Senior Researcher at NASA!
⏳ Quick Facts:
🚀 The Space Economy is Booming – The World Economic Forum projects that the space economy could reach $1.8 trillion by 2035, with in-space manufacturing playing a major role.
🧪 Microgravity Enables Breakthroughs – Key applications include regenerative medicine, stem cell expansion, advanced alloys, and high-quality semiconductors.
📉 Launch Costs Are Plummeting – SpaceX has lowered launch costs from $50,000/kg to ~$3,000/kg, with future costs potentially dropping to $100/kg or less.
💡 Startups Face Key Challenges – Companies must overcome technical hurdles, commercialization barriers, and supply chain logistics to scale in-space manufacturing.
💰 Funding Opportunities Exist – Non-dilutive funding sources like NASA’s InSPA, SBIR, and STTR programs can help de-risk early-stage space ventures.
🌍 From Lab to Market – Space manufacturing innovations are set to transform biomedicine, electronics, and materials science, creating high-value commercial opportunities on Earth.
KEY INSIGHTS FROM THE EPISODE
🛰️ Understanding the Low Earth Orbit (LEO) Economy and the Role of Advanced Manufacturing in Microgravity
The low Earth orbit (LEO) economy refers to the growing commercial activities and services taking place in low Earth orbit, which extends from approximately 200 kilometers to 2,000 kilometers above the Earth’s surface.
This economy encompasses a wide range of industries, including:
Telecommunications
Earth Observation
Space Tourism
Scientific Research
In-Space Manufacturing
The LEO economy is expanding rapidly due to advances in space technology, the decreasing cost of access to space, and the availability of commercial platforms such as the International Space Station (ISS).
The Unique Value of Manufacturing in Microgravity
One of the most significant aspects of space-based manufacturing is the microgravity environment, a key factor in producing next-generation materials and medical solutions that are impossible to create on Earth.
In orbit, the effects of Earth's gravity are greatly reduced, creating unique conditions that impact various physical and chemical processes.
Some key differences in microgravity include:
No Buoyancy Forces
No Thermal Convection
No Sedimentation
Reduced Hydrostatic Pressure
In these conditions, diffusion and surface tension become dominant forces at the molecular level. These properties influence biological and material processes, making microgravity an important factor in life sciences and materials research.
Current and Future Applications of Space Manufacturing
Several promising applications take advantage of microgravity to develop new materials and medical advancements. Some of the key areas include:
Biomedical Applications
Regenerative medicine – Research in stem cell production benefits from the unique conditions in microgravity, allowing for better cell growth and differentiation.
Tissue engineering – The absence of gravity enables the creation of 3D tissue structures that would be difficult to develop on Earth.
Materials Science Applications
New alloy development – Microgravity allows for the production of high-performance alloys with improved properties.
Semiconductor films and optical fibers – The absence of sedimentation and convection leads to higher-quality materials for advanced electronics and communication systems.
🔭 4 Emerging Innovation Areas in the In-Space Manufacturing Sector
The rapid expansion of LEO commercial activity is creating unprecedented opportunities for startups and researchers.
The intersection of biotechnology, advanced materials, and space technology is leading to groundbreaking discoveries that could transform industries on Earth.
Let’s first explore 4 real-world applications currently being developed to frame the key opportunities and challenges for startups in this space.
1. Biomedical Advancements: Growing Organs in Microgravity
One of the most promising applications of microgravity is its potential to grow human organs in space. This could provide a transformative solution to the ongoing global organ transplant shortage. Developing this capability could revolutionize regenerative medicine and create entirely new pathways for healthcare innovation.
2. Expanding Stem Cells for Therapeutic Use
A major research area in space biomanufacturing involves stem cell expansion.
Research has shown that stem cells grow significantly faster in a microgravity environment while maintaining their key characteristics.
To harness this potential, a new stem cell expansion facility is being developed for the International Space Station (ISS). This facility will eventually transition to upcoming commercial space platforms, enabling companies to scale stem cell production. The ability to increase the yield and quality of stem cells in space could have enormous implications for therapeutic treatments on Earth.
3. Improving Semiconductor Films for Electronics
Space manufacturing also has significant benefits for semiconductor production.
Due to the absence of gravity and dust particles, semiconductor films produced in space have shown a 10,000-fold improvement in quality compared to those made on Earth.
This advancement is critical for developing more efficient electronic devices, paving the way for next-generation computing, telecommunications, and energy solutions.
4. Next-Generation Fiber Optics: Fluoride Glass ZBLAN
There is significant interest in the production of fluoride glass ZBLAN fiber optics in space. Early research suggests that these fibers could reduce signal loss by 90% compared to traditional fiber optics. This breakthrough has the potential to revolutionize global communications by enabling faster and more efficient data transmission.
🧗 Key Considerations for Startups Entering In-Space Manufacturing
1. Technical Challenges
While microgravity offers unique advantages for manufacturing and research, it also presents significant technical challenges that must be addressed.
Some key areas include:
Fluid dynamics
Heat transfer
Material mixing
Automation and AI
2. Launch Costs
One of the biggest historical barriers to in-space manufacturing has been the cost of launching materials and equipment. However, launch costs have dropped significantly in recent years, making space manufacturing more feasible for startups.
Space Shuttle Era: $50,000+ per kilogram
Falcon 9 (SpaceX): ~$3,000 per kilogram
Future Starship Potential: $100–$10 per kilogram
The continued reduction in launch costs is a game-changer for startups aiming to develop pilot projects and test early-stage prototypes in space.
3. A Strong Interdisciplinary Team
Space manufacturing requires expertise from multiple disciplines. Successful startups must foster collaboration between engineers, biologists, physicists, and business strategists to integrate their knowledge and drive innovation.
Expertise in Space Sciences and Engineering
Since microgravity is a specialized field, having at least one team member with expertise in aerospace engineering or space sciences is essential.
Domain-Specific Knowledge
Then, a manufacturing process in space or testing a new prototype for biomedical or material science applications could require expertise across multiple STEM fields. Depending on the startup’s focus, expertise is required in:
Chemistry
Physics
Material Science / Engineering
Biomedicine
Business and Entrepreneurship
At its core, space manufacturing is a business. Alongside technical expertise, startups need strong leadership in:
Entrepreneurship
Business development
Investment and fundraising strategies
By combining deep technical knowledge with strong business acumen, startups can position themselves to capitalize on the emerging space economy and bring high-value innovations back to Earth.
4. Automation and AI Integration
Automation will play a major role in in-space manufacturing. Startups should explore AI-driven automation to reduce manual intervention and increase efficiency in microgravity environments.
5. Logistics and Supply Chain Management
Managing transportation, storage, and return logistics for space-manufactured products is a key challenge. Startups must consider efficient supply chain solutions for both space-based production and Earth-based commercialization.
📈 Funding Strategy for Early-Stage In-Space Manufacturing Startups
For startups working on in-space manufacturing, securing funding is one of the most critical challenges. Unlike traditional startups, space-focused companies require significant capital investment before reaching commercialization.
NASA’s In-Space Production Applications Program
One major funding opportunity comes from NASA’s In-Space Production Applications (InSPA) program. This initiative was created in response to the upcoming retirement of the International Space Station (ISS) by 2030 and the transition to commercial space platforms.
How InSPA Funding Works
Phase 1: Initial funding is provided to test and validate a new technology in space.
Phase 2: Startups can request additional funding, but NASA requires that at least 20% come from private investors or commercial partnerships.
Unlike traditional research grants, NASA prioritizes technologies that lead to real-world commercial products. They focus on biotech, biomedical advancements, and advanced materials that can have direct economic value on Earth.
Technical and Market Readiness Levels
When developing a space-based product, startups must demonstrate both:
Technical Readiness Level (TRL) – Measures how mature a technology is for real-world deployment.
Market Readiness Level (MRL) – Assesses whether a product has commercial traction and potential customers.
Alternative Funding Sources
Beyond NASA, startups in the U.S. can access small business funding programs designed to support high-risk, high-reward innovations.
Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) Programs:
Provide grants to startups for R&D.
Commonly used by startups to de-risk early-stage development before seeking private capital.
🌎 The Future of the Space Economy: A $1.8 Trillion Opportunity
The World Economic Forum estimates that the space economy could grow to $1.8 trillion by 2035. As launch costs decrease and commercial platforms expand, in-space manufacturing will become a major economic driver.
However, several key challenges remain for startups:
Reducing launch costs – SpaceX’s innovations have dramatically lowered costs, but further reductions are needed.
Developing scalable manufacturing processes – Space manufacturing must become cost-effective and commercially viable.
Securing long-term investment – Government support is crucial in the early stages, but startups must also attract private investors.
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