Investment Decision Best Practices For NASA From Venture Capital

As NASA continues to explore new frontiers in space, the agency often faces substantial financial hurdles. To overcome these challenges and maintain a steady pace of progress, NASA has turned to venture capital as a source of much-needed investment. By adopting the best practices commonly used in the venture capital industry, NASA can make well-informed investment decisions that drive its mission forward.

1. Conduct Thorough Due Diligence

Just like venture capitalists, NASA should conduct thorough due diligence before making any investment decisions. This involves assessing the potential risks and rewards associated with each opportunity. By examining the viability of the project, technological feasibility, as well as the team's experience and track record, NASA can reduce the chance of making ill-advised investments.

2. Diversify Investments

Venture capitalists are known for diversifying their investment portfolios to minimize risk. NASA can benefit from adopting a similar approach. By diversifying its investments across different projects and technologies, NASA can ensure that even if some ventures fail, others can compensate for the losses. This strategy provides a cushion against potential setbacks and increases the likelihood of overall success.

Investment Decision Best Practices for NASA from Venture Capital : NASA/TP-20205010519

by National Aeronautics and Space Administration(Kindle Edition)

4.9 out of 5

Language	:	English
File size	:	1965 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	65 pages

FREE

3. Collaborate with Private Companies

Partnering with private companies can present numerous advantages for NASA. By teaming up with established companies that have experience in specific areas, NASA can leverage their expertise and resources to accelerate projects. This collaboration can also lead to cost-sharing, reducing the financial burden on NASA and increasing efficiency in realizing mission objectives.

4. Embrace Innovation

Venture capitalists thrive on innovative ideas and disruptive technologies. NASA should adopt a similar mindset and actively seek out groundbreaking concepts. By investing in cutting-edge technologies and solutions, NASA can push the boundaries of space exploration and open up new possibilities for scientific discoveries. Embracing innovation is crucial for staying at the forefront of space exploration.

5. Foster Entrepreneurial Spirit

Venture capital environments cultivate an entrepreneurial spirit by encouraging risk-taking and thinking outside the box. NASA can benefit from creating a similar culture within its organization. By fostering an environment that values creativity, experimentation, and calculated risk-taking, NASA can attract talented individuals and develop a more agile and innovative approach to its investment decisions.

6. Monitor and Analyze Data

Data analysis plays a significant role in venture capital investment decisions. Likewise, NASA should leverage data to monitor the progress and success rates of its investments. By regularly analyzing data related to project performance, return on investment, and market trends, NASA can identify areas that require adjustments or reallocation of resources, ensuring optimal use of funds.

7. Foster Relationships with Industry Experts

Building relationships with industry experts can provide NASA with invaluable insights and a deeper understanding of various sectors. By collaborating with professionals who have extensive knowledge and experience in specific domains, NASA can make more informed investment decisions. These experts can offer guidance, advice, and help identify emerging trends or opportunities that may be overlooked otherwise.

8. Develop Long-Term Strategies

Venture capitalists often operate with long-term strategies, focusing on the potential growth and value of their investments over time. Similarly, NASA should develop comprehensive, long-term strategies that align with its mission objectives. By taking a forward-looking approach, NASA can identify opportunities that may require higher initial investments but offer substantial returns in the future.

The adoption of venture capital best practices can significantly benefit NASA in making investment decisions. By conducting thorough due diligence, diversifying investments, collaborating with private companies, embracing innovation, fostering an entrepreneurial spirit, monitoring and analyzing data, building relationships with industry experts, and developing long-term strategies, NASA can optimize its investments and further advance space exploration.

Investment Decision Best Practices for NASA from Venture Capital : NASA/TP-20205010519

by National Aeronautics and Space Administration(Kindle Edition)

4.9 out of 5

Language	:	English
File size	:	1965 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	65 pages

FREE

Executive Summary

American entrepreneurs, and the investment firms that enable them, represent one of the most innovative and dynamic aspects of the Nation’s economy. Startups are agile, resilient, learn quickly; and these successful innovators transform society. Hundreds of billions of dollars controlled by venture capital firms foster and drive these emerging businesses across America. However, a recent report indicated that only three percent of these investment dollars are channeled to aeronautics and space endeavors1.

The Nation has challenged NASA to fulfill several ambitious goals to meet America’s aeronautics, science, and space exploration missions. As NASA’s champions of innovation, the Office of the Chief Technologist (OCT),in partnership with the Agency’s four mission directorates, performed this study of venture capital (VC) firms. NASA seeks to leverage the interest and insights of the venture capital community to engage additional solution providers to fulfill NASA’s technology and commercial space goals. The VC Study team believes that selective lessons from this community could inform and influence NASA’s internal research and development activities.

OCT contacted a broad spectrum of VCs to discuss the rationale used when making investment decisions; practices used to support their companies; and to discuss how NASA might encourage investment in space-related businesses.

The VC Study team developed several findings and proposed twelve recommendations to improve the agility of NASA’s activities, and to create a foundation for understanding and communication between NASA and the VC community. The study suggests how NASA may learn from the selection process, criteria, and rationale of VC firms, as well as the mentoring and support processes and approaches that turn VC investments into successful companies. The VC Study captures approaches to externally share insights about NASA needs and commercial opportunities, to increase awareness for companies that seek to do business with NASA. The study also proposes increasing market research to provide NASA decision makers an understanding of emerging technologies and new commercial services.

VCs pursue opportunities to seek profit, by investing in the development and growth of successful businesses, while NASA seeks a growing and thriving commercial space sector to provide the products and services needed to support its missions. There is much common ground to consider, and the study authors believe that increasing the depth of dialogue with the VC Community will serve Agency needs.