The Space Boom Is Just Beginning

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**Ed Elson** (1:45)
Welcome to the Prof G Markets Founder Series. I'm Ed Elson.
The global space economy is projected to reach $1.8 trillion by 2035 What was once an industry dominated by governments is rapidly becoming one of the most important commercial markets in the world, shaping everything from national security and communications to scientific discovery and defense. My next guest has built one of the leading companies at the center of that transformation. What began as a company focused on lowering the cost and increasing the frequency of small satellite launches has evolved into a full-scale space systems business. Today, the company designed satellites, builds spacecraft components, and provides launch services that are helping shape the future of the commercial space industry. With more than $200 million in revenue last quarter, and a backlog that has grown to roughly $2.2 billion, the company has emerged as one of the biggest players in the future of space. This is my conversation with Sir Peter Beck, the founder and CEO of Rocket Lab. Peter, thank you so much for joining us on the show.
I think what would be helpful to get started here is an explanation of what Rocket Lab actually does. Clearly, you're in the business of space, but there are lots of different things that are involved in the space industry. So what is Rocket Lab doing? What services are you providing?

**Peter Beck** (3:13)
Well, thanks very much, Ed. I think you did a fantastic introduction, by the way. There's not much more to be said, but.

**Ed Elson** (3:19)
Cut it there. Done. Interview over.

**Peter Beck** (3:21)
Yeah. Done. We're good to go.
No, I mean, so what we're really trying to build here is an end-to-end space company. So what that means is that providing services directly from space and everything below that. You mentioned launch. Obviously, launcher is the keys to space and the ride to space, and then satellites are obviously the systems that provide the services, and then ultimately if you go up one level higher, it's actually the services from space. Our thesis here is that if you can build the satellites and vertically integrate all of your own components, and then vertically integrate your own launch, then your ability to provide services from space is obviously an advantage to somebody who has to go and buy all that stuff either from you or others.
So that's kind of the end goal for the company and we're sort of methodically step after step pushing towards that. And as you mentioned, now we're one of the largest component suppliers in the space industry. I think something like 30 percent of everything that went to space last year, had a Rocket Lab logo on it somewhere. And we build the satellites and the spacecraft and the rockets and everything in between.

**Ed Elson** (4:36)
Just some more context for the Space Virgins listening to this podcast. What kinds of companies are buying your products? Like what kind of company would buy a rocket component or a satellite? Who are those clients?

**Peter Beck** (4:52)
They range from the full end of the spectrum. So on the launch side, we have launched a little CubeSat for a bunch of Californian high schools.