Northwood Space’s Bridgit Mendler on the next chapter for space startups

In 2002, the idea of a space startup was considered far-fetched, but now there's a new generation of founders aiming to build a space economy. Bridgit Mendler, a Harvard and MIT graduate who co-founded Northwood Space in 2022, is at the forefront of this emerging industry. Mendler, known for her Disney Channel star days, is tackling one of the most critical challenges in the space economy: improving data communication between satellites and Earth without it becoming prohibitively expensive. Fortune interviewed Mendler as she discussed potential scenarios for space startups like hers.

The optimistic outlook is that these startups can indeed meet the commercial demand. Northwood Space, for instance, currently serves the Space Development Agency and a division of the U.S. Space Force. Mendler believes that as budgets grow for both government and commercial sectors - exemplified by the success of SpaceX's Starlink internet service - demand for satellite-centric services will also increase. With $136 million raised at an undisclosed valuation, Northwood Space operates like a telecom company.

However, on the flip side, the execution of space projects is notoriously difficult. Even minor mistakes or miscalculations on Earth can have catastrophic consequences in space, where failure is not an option with no second chances. The most critical issue Mendler discusses is the challenge of a tumbling spacecraft, which is nearly impossible to recover from once it starts spinning. To address this, startups must develop innovative ways to maintain communication with such satellites.

Though some industry experts predict a trillion-dollar space economy in the coming years, the reality is that only a select few startups will succeed. SpaceX, with its vertical integration, reusability, and focus on unit economics, has set a new precedent for the space economy by making it more economically viable compared to traditional methods. This new era of space startups will focus on scaling efficiently and cost-effectively, collaborating with others to share risks and reduce waste.

Ultimately, while the potential for a massive space economy is undeniable, the question remains on what timeline and which companies will emerge as the winners in this competitive field.