economics of bootstrapping (was New Book on Space Colonies)

--- In ssi_list@... "Arthur P. Smith"
>
> > Your comments above are snide. If you had read the post, and if
you
> > haven't then go back and read that last paragraph, you'll see
that I
> > wrote this: "I should note that I don't include satellite based
> > business proposals as space-based, just those that propose to
> > conduct their activity in orbit."
>
> Oops, I missed that in your post (it was quite long...) My
> apologies, though I don't quite understand why you don't
> consider satellite-based ventures to be "space based".

OK, no problem.

I'm looking for space nexus - and satellites don't really have it.
They're built on Earth, the launch is from Earth, the seller of the
service is on Earth, so to the buyer, the information either
originates or is processed on Earth, in some case almost the entire
value chain occurs on earth. Remote sensing comes closest to adding
value in orbit.

The satellites presence in orbit doesn't really advance towards the
goal I think is important - economic activity in orbit. I'm not
oblivious that not many are sharing my concern about the
distinction, :)

>
> SpaceDev is in a different category though, and seems to be
> doing ok.
>
> > These businesses conduct their
> > economic activity on Earth and they are not bootstrapping in any
> > fashion. (Look at the title of the post for a hint of its
content.)

Yes, the companies you quoted are doing OK, and they also have
access to the public capital markets, and so wouldn't be looking for
private placements.

>
> I'm afraid with the volume of posts I'd been skimming, and missed
> this point. So the business plans in question are for an operation
> whose customers are already in space, not something that sells
> directly to Earth?

No, by the criteria I'm personally employing, not some institutional
criteria, "space-based" should involve some value added in space.
This is of extreme interest to me. Of course the buyers and sellers
have to be on Earth. I'm just waiting for a crytal lattice that must
be grown in space for an electronics component. Now you send a
payload up, grow the crystal, return it to Earth and send it through
the remaining fabrication processes.

For a more in-depth analysis of orbital chip growth, see towards the
bottom of this message:

Or a drug grown in orbit. Or PGM. Or something.

Remote sensing qualifies, but not as the best example, because it
adds information value to the economic chain, but I'm discounting
satellites that relay info.

I'm not sure what you mean by "bootstrapping" -
> but I think I saw something by Andrew Case here on that so
> I'll refrain from further comment until I've had a chance to
> read more carefully.
>
> Arthur

Simply some activity that will help lay a firmer foundation for the
next venture. Yes, lower launch costs help everyone, but they aren't
sufficient in themselves to get things hopping in orbit. That's me
splitting hairs :) on the definition of bootstrapping.

TangoMan