2021/4/19, Episode 1 of the Study Session 3

(a series article about the discussion of the study session) this article translated by google translation.)

　The new business year started, we immediately held the third study session. It's been almost a year since we considered this study session, and more than half a year since the first study session was held, the situation of space investment has changed a lot. There are no days when space development is not talked in the news, and the name of JAXA has come to be seen here and there. But for investors in domestic, the fundamental question, "when will it be monetised?" Has not yet been answered.
　The first presentation by Mr Garvey McIntosh from Nasa shocked the participants to feel that no matter how much Japan worked on it, it would still have fundamentally different from what US has been doing...

NASA Initiatives
Even if we have seen the name "NASA" in space development exhibits and in science fiction movies when I was a kid, I might not have had the chance to hear about its organizational structure. NASA has four initiatives: Aeronautics Research Mission Directorate (ARMD), which works with aviation administration, Human Exploration and Operations Mission Directorate (HEOMD), which handles everything that sends humans to space, and Science Mission Directorate (SMD), which handles science matters. And, Space Technology Mission Directorate (STMD), which deals with technology. HEOMD has the largest budget of $ 10 billion, followed by SMD for exploring the moon and planets at $ 6 billion.
NASA is currently working on a new US government project, "Artemis", but of course it also has an active International Space Station ISS, in which Japan plays an important role. Various units are connected to the ISS, but the Japanese research lab "Kibo" is the largest, and 11 Japanese astronauts have stayed so far and conducted experiments with many commercial partners. Sending astronauts and cargo to the ISS relied on Russian rockets after the Space Shuttle retired, but since last year the private company "SpaceX" has already carried human, including Japanese astronauts, to the ISS. "It is very important for the sustainability of the ISS that such private sector powers enter this market," Mr McIntosh emphasized.

Diversity in Artemis
　Next Mr McIntosh introduced the Artemis project.
US used to have the Apollo project between 1969 and 1972, sending a number of astronauts to the moon. After that, US projects shifted to the low earth orbit called ISS, but it was all men who landed on the moon in the Apollo project. "So we think the Artemis project requires women to land first," said Mr McIntosh. "Then various ethnic groups" he continued. This time, US is aiming for the South Pole of the moon, which we have not visited yet, so this project will use the ISS for landing surveys.
He then explained that in the Artemis project there are many private companies are also working together. Regarding transportation, a project called Commercial Lunar Payload Services (CLPS) is underway, iSpace, a venture company from Japan is also raising its hand. "It's very exciting that US and Japanese companies are collaborating." Also, the Japanese government will complete an ISS-like station called the Moon Gateway, which orbits the moon, together with a Japanese private company in 2028. "It's completely different from the 1960s project," Mr McIntosh emphasized. "Japan has become a driver in the commercial sector. We really expect to Japan," he said.

"We don't want to instruct companies."
　This was followed by a Q & A, and an investor who is investing in Japanese companies, and participated from London for the first English presentation in this study session series, asked a question; “It's exciting to see many Japanese companies enter this area in collaboration with US companies. What areas would you like to recommend if new companies looking for new opportunities?" But an unexpected answer came back.
"Well, I don't think NASA is the only one pulling space industry, and I don't think we should say "try to do this “to companies. The US government is exploring space, and carrying out the Artemis project, but it works with many companies. Companies have ideas to move them forward. For example, if the company producing the air conditioner was interested, they can actually do something. I think that's a sustainable approach. We just want to be a customer” Then he continued “It’s definitely better for companies to bring in innovative ideas. the role of NASA is only to show a vision. For example, 'Let's go to the moon'. That is important to success”.

Why is it easy for space ventures to start up and develop businesses in the US?
　However, it is difficult for commercial companies to enter the space industry. This is because there is no immediate prospect of monetization. So why are so many companies in the US able to enter this area ... It is difficult for Japanese investors, who have participated in past study sessions, to invest in companies that challenge the space industry because the future is difficult to see. But why does it work in US? Is it the difference in investor's understanding?
Mr McIntosh replied: "NASA and US companies are also investing in companies in a way. For example, commercial cargo is now starting to bring humans into space. NASA has been looking for transportation since Space Shuttle retired in 2011. There were companies that wanted to enter this area and competition was begun. Some companies were eliminated, but private companies need competition. I want Space X and Blue Origin, etc. to make their best to win the competition. This is NASA's model.”
Japanese companies can also participate in this globally open competition. So now, when investors predict the future of Japan's space industry, it's not limited to just the Japanese government's budget. We should look at the world market, look at the US budget, and think about the future development of the market.

To be continued