May 2, 2019

Florida's Space Coast sees entrepreneurial growth

Illustration: Aïda Amer/Axios

CAPE CANAVERAL — Florida’s Atlantic coast is experiencing a resurgence of space enthusiasm, but this time it’s driven by Pacific coast billionaires with thick wallets and brainy entrepreneurs asking for cash.

Why it matters: It’s been 50 years since the launch of Apollo 11 inspired a generation to pursue space travel. But the space shuttle program no longer exists and NASA funding has been slashed, just as renewed global competition raises the stakes.

  • Steve Case, AOL co-founder and venture capitalist, spent Tuesday touring the Space Coast on his "Rise of the Rest" tour that highlights startups and innovation outside the usual tech hubs.

Flashback: A decade ago, the Space Coast was hit with an economic double whammy — NASA’s shuttle program was canceled, and the nation was drowning in a devastating recession. The resulting double-digit levels of unemployment caused some workers to leave the state.

  • The state-chartered economic development program Space Florida, along with economic development groups, has stepped in to promote aeronautical business in the area around Kennedy Space Center and Cape Canaveral Air Force Station. The goal was to fill the void left by the shuttle program.

What's happening: Today, the space center sees frequent launches, thanks in part to SpaceX. As soon as this month, SpaceX plans to launch satellites to low earth orbit to provide broadband service.

  • Jeff Bezos' BlueOrigin is expanding its facilities here.
  • So is OneWeb Satellites, a joint venture with Airbus that just got a $1.2 billion investment from Softbank. The company plans to build hundreds of low earth orbit satellites to beam broadband around the world.
  • Boeing, Embraer, Harris Corporation, Lockheed Martin and Northrup Grumman employ thousands of people. Many of the big companies have venture arms.

The big picture: The big companies have helped attract technical talent and nearby colleges are graduating a steady stream of engineers. But the private space tech ecosystem is still young, and local officials are trying to boost the fledgling startup scene.

  • The problem: Sending rockets, satellites, lunar rovers and people to the moon and beyond is pretty expensive and pretty risky.
  • Venture capitalists with stomachs strong enough to write a check are more likely to look in California, which snagged more than half of VC investment last year. Florida, by contrast, got only 1.3% of all U.S. VC funding.

"That's appallingly low," said Frank DiBello, Space Florida president and CEO. "But we're no longer singing the victim song that we were after the shuttle program disappeared. Now there's real growth."

What's next: NASA plans to return to the moon in 5 years, but it can't do it alone, said Kira Blackwell, who runs NASA's iTech program, which matches new space tech companies with private investors. "Technology is moving so quickly that it makes much better sense for us to partner with entrepreneurs to put boots on the moon."

NASA has long understood that private industry is key in the wake of the end of the space shuttle program, notes Axios space reporter Miriam Kramer.

  • The space agency is now turning to space companies like Boeing and SpaceX to launch their astronauts to the International Space Station in the coming years, ending NASA's reliance on Russian rockets.
  • But with these partnerships comes risk. NASA is now playing a waiting game as the two companies work to get their crew launch systems up and running after years of delays and budget shortfalls.

Bottom line: Unless it's well-funded with bipartisan Congressional support, NASA could also get stuck in a holding pattern when shooting for the moon, even if the private space industry is in favor of the mission.

Sign up to receive the Axios Space newsletter every Tuesday.

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 5,453,784 — Total deaths: 345,886 — Total recoveries — 2,191,310Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 1,651,254 — Total deaths: 97,850 — Total recoveries: 366,736 — Total tested: 14,163,915Map.
  3. World: Top Boris Johnson aide defends himself after allegations he broke U.K. lockdown — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 35 mins ago - Politics & Policy

Joe Biden makes first public appearance in over two months

Photo: Oliver Douliery/AFP via Getty Images

Former Vice President Joe Biden made his first in-person appearance in over two months on Monday to honor Memorial Day by laying a wreath at a Delaware veterans park, AP reports.

Why it matters: Biden, the Democratic Party's presumptive nominee, has taken the unprecedented step of campaigning from his home during the coronavirus pandemic, ever since canceling a rally in Cleveland on March 10.

WHO temporarily suspends trial of hydroxychloroquine over safety concerns

Photo: Fabrice Coffrini/AFP via Getty Images

The World Health Organization is temporarily pausing tests of the anti-malarial drug hydroxychloroquine as a coronavirus treatment in order to review safety concerns, the agency's director-general Tedros Adhanom Ghebreyesu said Monday.

Why it matters: The decision comes after a retrospective review published in The Lancet found that coronavirus patients who took hydroxychloroquine or its related drug chloroquine were more likely to die or develop an irregular heart rhythm that can lead to sudden cardiac death, compared to those who did nothing.