Why it's 'dangerous' for the government to bail out new space

Venture capital funding has nearly dried up during the coronavirus pandemic and while the government must step in to help new space companies, it must be careful not to replace private investors who help drive innovation, a space industry leader warns.

“Spacecraft require launch, so it keeps launch healthy. If you only support one sector [like small launch], you might have three or four small launch companies, but there’s nothing for them to launch. Ultimately, that’s not sustainable,” said Beck, a New Zealand native who founded Rocket Lab in 2006 to make small satellite launch services available to a broader community at a cheaper price.

“That round was to weather any nuclear winter,” he said. “To be fair, global pandemic was not on my list of things that could have occurred. I was more thinking of blowing a rocket up on the launch pad.”What are you seeing in the new space industry during the pandemic? If you’re a start up and you don't have a year to a year and a half of runway or you don’t have a business actually generating good revenue, it’s a very difficult time. … There’s going to be a lot of potential failure in the industry.

Space exploration is a government function. Many technologies we use today because of space programs of the government.

They've spent well over $200 million to make $50 million? Are they using the VC $'s to cash out the original investors? Kinda of a orbital pyramid scheme?

Wonderful, they're going to screw the National Guard members, but bail out these people.

any strategic economic part deserves preservation shouldbe preserved, watch latercontroloverit. itdoesntdisplace pirvqtemoney atall. unusual situation itis

If you want competition sometimes you gotta pay for it

Conservative Communism. Multinational Monopolies Welfare.

Lol this guy is actually arguing that the government shouldn’t take away jobs from venture capitalists. Dear Peter Beck, screw off and read The Entrepreneural State.

JoeBidenIsARacist

Nice little platform you built there, Politico. Cha-ching!

But what if it's a shiny new toy for the POTUS to play with? Is it OK then?

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