Founding and Mission
Alpine Space Ventures, established in Munich, Germany in 2020 by early SpaceX engineer Bulent Altan and long-time investor Joram Voelklein, was founded to capitalize on the burgeoning opportunities in the space sector. Inspired by the early days of American NewSpace, Altan and Voelklein aimed to foster the growth of the space industry in Europe and the U.S. Their initial personal investment in the German launch startup Isar Aerospace highlighted the potential for broader engagement, leading to the creation of Alpine Space Ventures.
Significant Milestone: Closing the First Fund
After two years of fundraising, Alpine Space Ventures closed its first $184 million (€170 million) fund, marking the largest first-time VC fund dedicated to space globally. The fund’s Limited Partners (LPs) include over 20 early SpaceX employees and major institutions such as the European Investment Fund and the NATO Innovation Fund. This capital is designated for 10-15 investments, with five already made, and check sizes up to $5.4 million (€5 million). Approximately 70% of the fund is earmarked for European companies, reflecting the firm’s commitment to both sides of the Atlantic.
Investment Philosophy and Strategy
Alpine Space Ventures’ investment philosophy is heavily influenced by SpaceX’s approach. The firm focuses on companies that benefit from the advancements made by SpaceX, avoiding direct competition with the industry giant. According to Altan, the firm’s portfolio includes component builders and satellite builders who thrive in the expanding satellite sector opened up by SpaceX.
The firm’s thesis emphasizes the growth of a supply chain similar to the automotive industry as the space sector expands. Telecommunications and Earth observation are identified as key markets driving demand for satellite buses and components.
Current Portfolio and Market Potential
Alpine Space Ventures has already made five investments, including:
- K2 Space: A Los Angeles-based startup aiming to build massive satellites for a Starship-enabled future.
- Reflex Aerospace: A German satellite builder.
Despite receiving nearly 1,000 pitches in the last two years, the firm remains selective, focusing on companies that fit their strategic vision.
Technical Expertise and Industry Insight
Alpine Space Ventures’ team boasts strong technical backgrounds, crucial for identifying gaps in the value chain and making informed investment decisions. The technical director, Catriona Chambers, has extensive experience at SpaceX, leading avionics for Starship. Hans Koenigsmann, the firm’s technical advisor, was SpaceX’s fourth technical employee.
Challenges and Future Outlook
Investing in the space sector presents unique challenges, particularly aligning technical promise with venture timelines. Altan acknowledges the difficulty in closing a typical 10-year fund cycle, emphasizing the importance of industry knowledge to convince investors to commit.
The space industry’s culture of rapid hardware iteration, where setbacks like rocket explosions can still be seen as successes, requires significant education for politicians and prospective LPs. Additionally, space startups often require substantial upfront capital, with U.S. companies benefiting from funding vehicles offered by the Department of Defense and NASA. Europe is beginning to follow suit, which is vital for the indigenous space sector’s growth.
