Cosmo Bee

Policy funding and venture capital (VC) are flowing into the aerospace sector at the same time. Expanded government support is leading to increased private investment. The VC industry is also showing growing interest in entrepreneurs from KAIST aerospace laboratories, where Korean talent is concentrated.

 

◇ Policy Funding and VC Investment Flow into Aerospace

According to the VC industry on the 13th, a total of four aerospace startups successfully raised investment in July. MID, a developer of electronic components for space applications, raised KRW 15.7 billion in Series A funding. Cosmo Bee, which develops electric propulsion systems for satellites, also secured KRW 6 billion in Series A funding. SPECTRAINTEL, which develops ultra-compact imaging hyperspectrometers, raised seed funding. Momentum Space, a developer of satellite attitude-control components, also secured pre-Series A funding.

 

A series of aerospace startups have raised investment over the past several months. In June, UNASTELLA, which develops liquid-propellant rocket engines, raised KRW 33.5 billion in Series B funding. LeO SPACE, a developer of optical payloads for satellites, also secured KRW 8 billion in Series A funding. SPEX, which analyzes satellite observation data, raised KRW 3 billion in pre-Series A funding. CSO, a company established by CONTEC that specializes in high-resolution optical payloads for small satellites, raised KRW 16.2 billion in May.

 

The government’s efforts to foster the space industry appear to be aligning with increased private investment. Last month, the Financial Services Commission expanded the National Growth Fund. It increased the amount to be supplied over five years from KRW 150 trillion to KRW 200 trillion. Future strategic industries, including aerospace, were newly added to the areas eligible for support. This means that space deep tech has emerged as a target of direct government investment.

 

The Korea AeroSpace Administration also finalized this year’s budget at KRW 1.1201 trillion, an increase of 16.1% from last year. Its R&D budget was set at KRW 949.5 billion. The budget for New Space investment support also increased significantly, from KRW 3.5 billion last year to KRW 100 billion this year. The Korea AeroSpace Administration plans to establish a KRW 200 billion New Space fund by contributing this budget and matching it with private capital.

 

◇ Government Projects Serve as a Catalyst for Lab-Based Startups

 

As government funding flows into the sector, university laboratories are also racing to secure government-funded projects. Aerospace technologies generally require long development periods. They also require considerable time to reach commercialization. Early-stage companies often have no revenue. Securing government projects can reduce the burden of initial research expenses. Companies that complete technology verification also find it easier to attract VC investment.

 

KAIST’s Department of Aerospace Engineering is considered a leading talent pool. Entrepreneurs from the Aerospace Systems and Control Lab (ASCL), led by Professor Hyochoong Bang, are attracting particular attention. The lab conducts research on the guidance, control and navigation of aerospace systems, including unmanned aerial vehicle systems and satellite systems. Nearthlab CEO and co-founder Choi Jae-hyuk and CTO Jeong Young-seok, whose company is currently undergoing the KOSDAQ listing process, are experts who studied flight control at the lab.

 

There are also continuing examples of laboratory technologies being commercialized directly. Professor Bang founded Astrolinx, a space-exploration technology company. The company is commercializing space-resource utilization technologies. Cosmo Bee was also jointly established by Professor Wonho Choe’s research team and CEO Dongha Park, who studied nuclear and quantum engineering at KAIST. The company is working to localize the production of electric thrusters for satellites.

 

Korea’s aerospace industry considers KAIST’s Department of Aerospace Engineering an irreplaceable talent pool. This is because its research covers a wide range of fields, from launch vehicles and satellites to flight control and navigation. Its faculty members and graduate students also continue to produce aerospace professionals. There is also a growing number of cases in which laboratory graduates have founded companies, as seen with Nearthlab.

 

One VC representative said, “Aerospace is ultimately a field in which technology resides in people. We begin by looking at what kind of talent comes from proven laboratories.” The representative added, “As government support has reduced the burden of early-stage technology development, opportunities to invest in startups founded by researchers have also increased.”

 

 

 

Original Article : Government Support Fuels Aerospace Growth…VCs Turn Their Attention to KAIST Labs