DUN'S 100 2016/17 - High-Tech & Technology Sector

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High-Tech & Technology
High-Tech & Technology - DUN’S 100 | 2016/17 50
High-Tech & Technology
EFFECTIVE SPACE SOLUTIONS R&D LTD.
Effective Space believes that space is the
last untapped commercial frontier. It envi-
sions a future where operating a business
in space can be as frictionless, profitable and ef-
ficient as it is on Earth. Effective Space mission is
to build last-mile logistics services that will power
this new economy, ensuring access, growth and
sustainability.
With its fleet of small spacecraft, it will provide
uniquely efficient logistics services that are more
cost-effective, responsive, and adaptive than
any other method. It will leverage autonomous
robotics and unique docking capabilities.
Extending the Life of Satellites in Orbit
Effective Space ‘phase 1’ rollout will provide life-
extension and other in-orbit services to geosyn-
chronous communication satellite operators. This
>125 billion dollar growing market of satellite ser-
vices is based on more than 400 satellites, each
designed for 15 years of service. Around 20 such
satellites are being replaced annually due to end of
fuel, but may otherwise exceed operational life ex-
pectancy. Satellite operators are facing increased
price competition and financial risks, aswell as un-
certainty in tailoring their replacement satellite de-
sign. Replacement program typical upfront cost for
15 years is US$300M, operator’s estimatedWACC
(weighted average cost of capital) is 7%-9%, result-
ing in US$33M-US$37M annual value of deferring
satellite replacement. In-orbit services benefit the
operators with flexible fleet management, reduced
capital expenditure and low-risk business growth,
while unlocking revenues beyond ‘end-of-fuel‘.
Small Spacecraft, Big Capabilities
Effective Space offers insured satellite life-ex-
tension, relocation, orbit-correction, inclination-
correction, bring-into-use (BIU) and deorbiting
services. The solution relies on a proprietary small
spacecraft design (~350Kg), allowing it to be
launched as a rideshare. It has a non-intrusive
universal multi-docking system (to the standard
interface ring adapter between launcher and sat-
ellite), performing orbit-control (functioning as an
external “jet-pack”).
Effective Space spacecraft is manufactured by a
leading provider of small satellites. Rendezvous
and Docking testing and verification are conducted
in leading European labs which are also used for
the International-Space-Station (ISS) missions. The
fleet of spacecraft is being registered in the UK, a
processwhich also includes the coordination of fre-
quencies. The spacecraft itself, the launch and the
services are to be insured by space underwriters.
Effective Space will expand its portfolio of ser-
vices to include delivery, positioning, monitoring,
maintenance and guaranteeing of space assets.
Applicable services will address LEO/MEO satel-
lite constellations, inspection and repair, asteroid
mining, debris removal (‘clean-space’), as well as
space endeavors like “Mission to Mars”.
Corporate Profile
EffectiveSpace is headquartered in the UK, with an
Israeli R&D center. Its teamholds decades of small
satellite design, programand operations expertise.
Execution is further enabled by a secure ecosystem
of manufacturing, launch, operations and ancillary
services with leading partners. Effective Space was
founded by Arie Halsband, who led the Israeli low-
weight/high-performance small-satellite industry
as the General Manager of IAI Space Division, and
was responsible for the commercial and opera-
tional activities. In this period, five satellites were
successfully launched. Arie joined the IAI space
program at its early phase in 1986, and prior to
becoming General Manager, served in various po-
sitions – Head of Department, Deputy Director of
Engineering, Director of the Space Technologies
Directorate and Managing Director of IAI Asia.
Funding
More than 50 venture capital firms invested a total
of US$1.8 billion in commercial space (‘NewSpace’)
companies in 2015, nearly doubling the amount
invested in the industry in all the previous 15 years
combined.
It is a noticeable shift from the traditional percep-
tion of space programs as too risky and too slow
to yield returns. The falling cost of small satellite
components and capabilities changes investor at-
titudes toward young space startups. The European
Commission has recently announced a newSpace
Strategy policy in response to growing global com-
petition, increasing private sector involvement and
major technological shifts.
The Commission proposes a range of actionswhich
aim to create the right ecosystem for space start-
ups to grow.
Effective Space has securedSeed funding in 2013,
Series A funding in 2014 and Series A+ funding
in 2016, upon signing a multi-year life-extension
service letter-of-intent (LOI) with a satellite opera-
tor. It has also secured rideshare launch services
for its first spacecraft.
The LOI is being translated into a full contract, al-
lowing Effective Space to apply for debt/export
financing (a unique framework and leverage
for aerospace programs), and to seek Series B
funding.
Esta b l i s h e d
2013
L i n e o f B u s i n ess
Aerospace, Satellite
Servicing
53 Hashalom Rd., Givatayim, 5345433
Tel: 972-73-780-3505
Liron Kfir
Director of Finance
Daniel Campbell
VP Marketing &
Biz-Dev
Ofir Azriel
CTO
David Zusiman
VP Spacecraft
Programs
Dr. Nevo Taaseh
R&D Lead
Arie Halsband
Founder & CEO