Sierra Nevada’s Dream Chaser spacecraft in orbit
Source: Sierra Nevada Corporation
Another company is coming to the commercial space industry, but unlike many of the new ventures that grab the imagination, this venture already boasts billions of dollars in business.
And it could possibly be compensated by investors soon.
Privately owned Sierra Nevada Corporation (SNC) is creating Sierra Space, an independent commercial space company with a portfolio that includes a reusable spacecraft and a commercial space station – big bets are being developed that the new organizational structure is intended to accelerate.
“Our space business is a unique example of our growth strategy. Starting with a $ 40 million acquisition, its revenue has increased 10x to $ 400 million today and will reach $ 4 billion within 5-10 years,” writes SNC Chairman and President Eren Ozmen. , in an internal email from the company that was circulated Tuesday and viewed by CNBC.
‘To accelerate this growth and greater impact, we announce today that our space business area will be transformed into an independent, commercial space company … As a subsidiary, Sierra Space will remain part of the SNC family and deep cooperation and synergy between customers, technologies and many shared activities. ‘
Sparks, the Nevada-based Sierra Nevada Corporation, is 100% owned by the husband-and-wife team, Fatih and Eren Ozmen, Turkish immigrants who became billionaires, turning the formerly struggling SNC into a defense contractor and built national security. More than a decade ago, they saw the opportunity to start investing in space capabilities and technology, and personally bet – in the same way as other profound visionaries like Jeff Bezos, Elon Musk and Richard Branson – leading a new private sector space economy can go up one day.
‘Vibrating low-earth orbit’
The Ozmen vision extends to space transportation, destinations and infrastructure, even in low earth if it leads to commercialization.
“We envision a vibrant low-earth economy with fleets of Dream Chaser spacecraft, a commercial space station, expandable LIFE habitats that can travel to the moon and Mars, and critical infrastructure such as power generation, propulsion and environmental systems,” says the internal email.
Sierra Space will have the reusable Dream Chaser spacecraft currently under development – a ‘space taxi’ designed in part after the Space Shuttle will be able to land on any airport runway in the world that can support a Boeing 737 aircraft.
Dream Chaser, designed with the capability to transport people and goods, is currently contracted with NASA to carry out six cargo mission missions to the International Space Station by 2024. The first flight for NASA is expected at the end of next year.
SNC also recently unveiled its commercial space station, an integrated, free-flying prototype for which testing will soon begin at the Kennedy Space Center in Florida. The station consists of inflatable LIFE habitats that the company has designed for long-term stay, and is expected to compete for NASA funding in the agency’s recently unveiled commercial LEO destinations (CLD) project.
SNC’s space portfolio currently totals $ 3 billion in active contracts.
Space investment tree
The creation of Sierra Space comes as a broader position in the commercial space industry as more rocket companies reach a trajectory, space tourism plans increase and the Biden administration proposes a six percent budget increase for NASA in fiscal 2022.
Investors have also woken up for the sector in a significant way. An increasing number of space start-ups are setting up specialty venture ventures, and Cathie Wood’s new Ark Space Exploration & Innovation ETF is set to be one of the most successful fund launches ever.
The company’s email address does not address this, but the new structure could create more flexibility if capital is obtained. It is currently unclear if and how the Ozmens will act out of investment, but they indicated in an interview with CNBC’s “Squawk on Street” openness to the possibility last December.
“We are open-minded because we see that raising capital will enable us to scale up significantly and accelerate our growth,” Eren told CNBC at the time.
“We have this vision … we may be able to get there sooner rather than later … if we take advantage of the capital markets. There is the excitement that one cannot ignore, or SPACs, I mean valuations are the highest levels, investment is record levels, “Fatih added. , who is SNC CEO, during the same interview.
In Tuesday’s internal email, it is said that the SNC workforce will learn more in the coming weeks and months about the steps being taken to change the space business. It will probably take a few months for the new Sierra Space company to become truly independent.