We are thrilled to present an interview with Stephen Eisele, the recent addition to the Management Board at SatRev, a dynamic Polish space company based in Wrocław. (Polish version here)
With over 18 years in the space industry and the managements of pipelines worth several billion of USD, Steve brings invaluable experience from working on government space projects to holding executive roles in commercial space firms. In this conversation, he shares his journey, insights into the space industry, and his vision for SatRev’s future. Steve, who is deeply impressed by SatRev’s team and accomplishments, aims to leverage his expertise to strengthen the company’s presence globally, particularly in the US market. Join us as Steve discusses the opportunities in the space sector, SatRev’s potential, and his commitment to contributing to its growth and success.
Could you share with us your space industry experience?
I started working in the space industry during college, so it’s been over 18 years now. I’ve always had a passion for space and was thrilled at the prospect of creating new industries and markets. After finishing my graduate studies, I jumped right into space projects, working with US government affairs. My job at Capitol Hill had me meeting with Members of Congress to develop space-related programs and projects.
Later, I shifted to the commercial space sector, drawn by the challenges of commercial development in space. I joined a space tourism company in 2008 that acquired space stations and capsules from a dismissed military program. We raised around 70 million USD to get those stations and capsules flight-ready.
In space tourism, having connections with government agencies and investors who are keen on such projects is key. That was my first real exposure to investors, and I learned they were genuinely interested in space and in creating something new. I used that knowledge to help raise funds for various space projects in the US, including NASA projects, a solar sail project, and a suborbital rocket that launched 25 times from New Mexico.
In the early days of my career, I learned how space systems and technology work, the ins and outs of politics, and how to raise funds. Then in 2015 I joined the UK based Surrey Satellite, the first commercial company to manufacture small satellites. Their success allowed them to be still operational today, and their experience inspired several other companies worldwide on the feasibility of the space business. I was an executive there for three years and this is where I learned a lot about satellite technology.
Six years ago, I moved to Virgin Orbit, where I served as Vice President. I was in charge of business and strategic development, working closely with CEO and Richard Branson. Virgin Orbit has been innovative, successfully launching rockets from planes six times. There I managed to build an international sales pipeline worth more than 2 bln USD. Then, unfortunately, a mix of high development costs and the bad situation of the financial market led the company to file for Chapter 11. So, that’s a bit about my journey in the space industry!
What convinced you to join SatRev?
I’ve had the chance to observe various businesses and witness the emergence of the new space industry. The past decade has shown that while space is a challenging endeavour, there are companies out there successfully executing their business plans. I’m always on the lookout for exciting opportunities and talented companies with projects that capture my interest. When I came across SatRev, I was immediately impressed by their incredible team and depth of knowledge.
SatRev has positioned itself to be the next cost leaders in the industry, which is a significant strategic advantage, especially in an industry with such high costs. What drew me to SatRev was the combination of their skilled workforce, technical expertise, and a track record of successes.
It became clear to me that SatRev is a fantastic company with a bright future ahead. Despite being relatively young, SatRev achieved a great deal with much less capital than what smaller and less ambitious US companies would typically need. That’s what convinced me to join the SatRev team!
Is it your first time in Poland?
I’ve been to Poland quite a few times, actually. In the framework of my role at Virgin, with SatRev, we’ve launched three satellites already. We’ve also collaborated on various campaigns to support space initiatives right here in Poland. When I was with Virgin, SatRev and I initiated the Polish mission to Mars. I even signed a memorandum of understanding with the Polish space agency to have a Spaceport operated by Virgin Orbit here in Poland. So, I’ve got a pretty solid network of folks here that I’ve had the pleasure of working with
successfully!
What are your targets for SatRev?
My role in SatRev will be to bring the knowledge on how to build a successful business development strategy and to help the company in the international market outreach. My past experience allowed me to know many several markets and promising opportunities.
One of my key objectives is to strengthen SatRev’s presence in the US market, which is currently the most promising market for emerging space companies. The US holds over 50% of the small satellites market, serving as the hub for the majority of customers, partners, and opportunities. However, the global landscape is constantly evolving, and I believe my expertise can significantly aid in broadening SatRev’s presence in both European and international markets.
I will be actively involved in fundraising efforts for SatRev, identifying business opportunities, and ensuring the successful execution of our long-term strategy. SatRev is creating a data market for everyone. It does not matter if you are a farmer, a captain of a ship, a constructor, a public officer: there is satellite data you can leverage to add value to your activities.
So, the real value of the Earth observation market is not about hardware, but rather to be able to collect satellite data and deliver it to the end user in the most efficient and shortest possible way. And SatRev is on the good track in doing so.
So, do you see SatRev as one of companies that could democratize space for everyone?
Absolutely! SatRev is indeed one of those companies that has the potential to democratize space for everyone. Well, SatRev aims to democratize the space sector by offering its proven, low-cost hardware to private and public organizations worldwide. Many countries are eager to establish their own satellite systems. There are various reasons countries wish to have their own satellite systems, but the main ones are economic development and prestige. With their own systems in place, these countries can explore downstream applications, expand their industrial bases, enhance their know-how, and collaborate with universities and partners all around the world.
SatRev’s business model is particularly appealing to countries that are in the initial stages of developing their space economies, like Australia, Korea, or Oman. These countries can leverage SatRev’s existing technology without starting from scratch, creating a streamlined process where everything is manufactured in Poland.
What makes SatRev’s approach stand out is that while the technology originates from Poland, it can be utilized and accessed globally. This innovative business model positions SatRev competitively, allowing it to outperform many competitors in the market.
Could you summarize strengths and challenges of SatRev from your point of view?
SatRev has a profound technological know-how, and it has been successfully demonstrated: there is the tech, the knowledge, and a heritage of several space flights. Another strength is their development base here in Poland, which gives SatRev a cost advantage—a big deal in the commercial space market. Additionally, SatRev can enter various countries and establish operational partnerships because they approach collaborations with openness and transparency. Unlike the US, SatRev doesn’t face as many export restrictions, allowing them to discuss satellites, integrate payloads with more ease. This openness attracts more business opportunities since countries prefer partners who are willing to share more. For instance, if a country like Korea wants to purchase a satellite from the US, they wouldn’t be involved in the manufacturing, launching, or servicing processes. With SatRev, however, partners can ger more hands-on experience and learn from the highly specialized SatRev’s engineers.
The biggest challenge for SatRev?
SatRev has done a fantastic job building single satellites and showcasing their technology. Now, the goal is to expand on that success. Thus, SatRev needs to shift from producing single or double-unit satellites to taking on larger projects and mass production. We’re talking about projects ranging from 15 to 100 million USD that we believe will elevate the company to new heights.
I’ve built over 2 billion USD in pipelines, sourcing opportunities for contracts to be developed over time. I leverage my global network for this, working closely with international governments and commercial companies to make it happen. Scaling is always a challenge, but with careful planning and execution, it’s definitely within reach for SatRev.
SatRev’s vision is to operate a constellation of nanosatellites. What’s your opinion about that?
I totally think that’s the direction to head in. The idea is to have a large constellation with lots of satellites providing various types of data through different sensors. Think of it like upgrading your iPhone; you wouldn’t use an iPhone 1 today, right? Similarly, satellite technology needs to be upgraded every three to five years to keep pace with rapid technological advancements to meet the growing demand.
SatRev plans to keep their satellites in lower orbit and will deorbit them, causing them to burn up in the atmosphere, avoiding space debris issues. Then the satellites in the constellation are replenished over time, maintaining large constellations that consistently provide the most up-to-date data.
To pull this off, SatRev needs a significant manufacturing plant and to leverage its cost efficiency, with the capability to produce satellites quickly and cheaper. SatRev has shown that this is possible, turning around satellites in weeks to a few months, which is pretty speedy.
Moreover, SatRev plans to increase their platform size, allowing for more power and capabilities. This way, it is possible to tailor their satellites more closely to specific needs. A constellation approach is essential since about 80% of space needs are data-related, whether that’s data coverage or observation. To gather data covering the whole world, you need a substantial number of satellites up there.
Do you see potential in creating services like Space-as-a-Service?
Absolutely! There are various business models out there, and some are more suitable at different stages in a company’s life. As SatRev reaches economies of scale by launching many satellites, people can begin tasking or directly purchasing data without having to invest in getting a constellation up and running themselves. This approach will definitely play a role in democratizing space further.
Let’s shift our focus to the entire sector. How do you perceive its current state?
We’re still in the early stages. SatRev has demonstrated the technology and, right now, the primary goal is to raise fund to scale up the number of operational satellites. This will ultimately allow us to expand our presence in the global market with a wider range of services provided. We're beginning to transition since many tech-demo satellites have proven their worth. Now, we’re witnessing funding rounds aimed at enhancing our capabilities, meaning both increasing satellite size and the number of satellites. This transition is still underway, so investors jumping in now are catching a wave that still has a lot of upward potential.
We’re far from peaking; in fact, we’re very much only at the beginning.
Is the sector approaching the mainstream phase?
I’d say it’s still early days. We’ve moved past the risk phase, having demonstrated that satellite technology is reliable and works as intended. However, we’re still in an early phase where the focus is on levelling up, moving towards deploying multiple satellite constellations and a wide range of data-related services.
What do you think is the biggest challenge facing the space industry right now?
There are two major factors reshaping the industry. The first is the cost of technology and processing power. With the miniaturization and development of chips, both software and processing power are improving exponentially. This allows for smaller and lighter equipment, which in turn reduces costs. The second is the cost of launches which, with the success of companies like SpaceX, has decreased by much, making space more accessible.
However, challenges remain. The industry is still capital-intensive, requiring significant fundraising. With many companies trying to enter the space market, we'll likely see waves of consolidation and, inevitably, some failures. But the growing market size and increasing interest in space are positive signs. The future is undoubtedly in space, and the space economy will continue to expand. The real question is, do you want to be an active participant in this growth, or will you wait until it’s established, potentially becoming dependent on countries that have already secured their capabilities and access?
How do you view SatRev’s approach to Research and Development (R&D)?
Staying competitive means constantly investing in internal research and development. For instance, creating a resolution under one meter was a big deal five years ago. Now, SatRev is collaborating with a specialised space optics company to achieve resolutions of half a meter or even less. With technology improving rapidly, we have experienced the commercial-scale production of significantly enhanced tech in less than five years. Keeping up with these advancements is what internal R&D is all about.
And we cannot stop. Virgin Orbit is an example in this sense. When we started drafting our business plan in 2015, there weren’t any competitors in the launcher market. We set a price, thinking it would become the market standard. However, within three to four years, prices dropped significantly due to increased competition. We were somewhat slow to adjust our pricing and adapt to market demands.
SatRev understands that a business plan isn’t set in stone; it’s a living document that must reflect market dynamics. It’s crucial to stay ahead of trends and remain committed to R&D, either by developing in-house or partnering with innovators who bring new technologies to the table. Otherwise, we risk to fall behind.
What’s commendable about SatRev is their foresight in designing hardware with common interfaces. This means that as we develop new and improved telescopes in the future, we should still be able to integrate them with existing or similar hardware without any major issues.
So in short, their hardware is adaptable for upgrades?
Exactly! SatRev hardware is designed to be upgradeable without any problem, ensuring that it remains up to date and competitive in the market.
SatRev is on its way to being listed. Would you consider becoming a shareholder?
Absolutely! I’d definitely be interested in buying SatRev stocks. It’s still an early opportunity to enter the space market, and I believe SatRev has a significant cost advantage over its competitors. Plus, the international partnerships they’re forming are quite unique compared to what other companies are doing. This makes investing in SatRev an intriguing opportunity for me.
Do you think your presence in the company will bring it closer to securing US contracts?
Absolutely, that’s the plan. The encouraging thing is that there’s increasing international cooperation happening, with entities like the US Space Force, NASA, and various commercial companies engaging more with international partners. This wasn’t always the norm, so it’s great to see the changing dynamics and growing interest in collaboration within the US.
Given the current events in places like Poland and Ukraine, there’s been a noticeable appreciation for Poland from the American side, which I believe has strengthened the partnership between the two countries. From my point of you, there are several opportunities for cooperation.
SatRev is establishing an office in the US, where I’ll be based. While I’ll be spending time in the US, I’ll definitely travel to offer support as needed. Having a US-based entity is crucial as it will serve as the face of the company when engaging with the US government and other partners. I don’t just see SatRev as a satellite or space company; to me, it’s a technology company, much like those innovative firms in Silicon Valley, always on the lookout for innovation.
I’m thrilled to join SatRev, bringing my extensive experience with global space initiatives to the table. Having worked with a diverse range of customers, launched satellites, gained experience on the data and finance sides of things, and building pipelines worth more than USD 2 bln, I’ve covered substantial ground in the industry. I look forward to supporting the SatRev board, assisting in strategy development, and aiding in securing international sales deals.
