Unlocking the Potential of European Space Tech: An Interview with Tero Vauraste
Space exploration is more than just reaching for the stars – it is about harnessing advanced technology to tackle some of the world’s toughest challenges. From monitoring climate change to enhancing global communications, space tech is unlocking new possibilities that redefine our understanding of the planet and beyond.
In the harsh and unforgiving Arctic, where extreme conditions push human ingenuity to its limits, these innovations are proving to be invaluable. To shed more light on these issues, we recently interviewed Tero Vauraste, Senior Advisor at ICEYE, Founder at Mariadi OY and a leading expert in Arctic and maritime industries. Tero shares his insights on space tech and offers valuable advice for startups aiming to make an impact in this challenging, yet crucial sector.
TT: You will be keynoting the upcoming Tech Tour Space 2024 event this October in Bodø, Norway. In the past you have emphasized the need for Europe to stand on its own, in terms of innovation – in that sense, what is your perspective on the value Tech Tour events create?
TV: First of all, there is great innovation taking place in Europe. We have excellent startups and scaleups in space tech that really need encouragement and, importantly, also both private and public funding. There is capital available in Europe, but much more investment power is available in North America. So what Tech Tour provides is the link – helping potential investors find the future “pearls.” These companies give new feet for Europe to stand on its own. An event like Tech Tour’s is actually something unique that hasn’t been present in the space market so far. Typically, at Arctic events and conferences, space has had a very marginal role. So there is really a gap in the market, which this event is filling now.
My personal experience joining Tech Tour programmes with the companies I’ve supported, ICEYE and IQM Quantum Computers, has been very positive. [Editor’s note: both companies were recently part of the annual Tech Tour Growth50 list, and ICEYE was the 2023 Award-winner in the Digital sector]. The companies have really gotten support from Tech Tour events, discovering and being discovered by investors. Also, getting awarded with ICEYE has been an opportunity to see where we are, compared to the market and to our competitors – and this has been really rewarding as well.
TT: With your deep experience in the Arctic and maritime sectors, how do you see space technology revolutionizing operations in these extreme environments?
TV: There are a few important features of the Arctic. First of all, it is a remote place. Secondly, it is a cold place. And thirdly, it is a dark place. So the environment and way of working in those conditions is something unique – and, despite climate change, the conditions will remain harsh.
When we speak about Arctic navigation, we should look into what are the needs for it. In the Arctic areas you have at the moment two main routes – the Northern Sea route, passing the Russian Northern coastline, as well as the Northwest passage, transiting through U.S., Canadian and Greenlandic Arctic waters. Thirdly, there is an expectation for the polar route in decades to come, which would let you bypass just directly over the pole. Now, the use of these routes has been very small and it will remain small- there isn’t that much commercial need expected, although some increase is possible. The factors that might push international transportation to these routes would mainly be based on potential big problems in the Suez canal area or Panama canal area. Also, the Northern Sea Route is important to destinational transportation of natural resources in the area.
Secondly, of course, the Arctic has become much more interesting in terms of geopolitics. It used to be called the area of “Arctic exceptionalism” where international tensions didn’t visualize themselves that much. And I say “visualize” because not everything that is underwater is fish. So this means that the needs for navigation are even more important.
What’s more, ice developments are really interesting in the Arctic areas. The general expectation is that the climate is warming, which means that there will be less ice and it is going to be easier to navigate – but that is not the case. It is going to be different to navigate. And actually because of climate change you don’t get that much reliable information from what has happened in a certain way historically, because there is a lot of change. The routes of the ice flows are new. So here we come to the need for satellite imagery and synthetic aperture radar imaging, for instance, which gives you an opportunity to see through clouds and see through darkness – remember, the Arctic is a dark place.
Finally, there is the need for satellite communication in the remote areas, and we have seen great technological developments, providing new opportunities for web-related communication. So satellite technology has a really important role, both in terms of navigation and communication in the Arctic conditions.
TT: How do you envision the progress of space tech, and what synergies should European space tech startups be looking to leverage?
TV: Space technology is not rocket science – let’s start with that. It’s just another area of engineering, and that’s important to remember and understand. So even though it’s fascinating, exciting, special- it has some unique features. For instance, one of the most important things to understand is that, when you send a satellite to space, you don’t go to fix it anymore – it stays there.
Importantly also, the use of materials is different because whatever you use has to be manufactured in a manner that can take the conditions in space. For instance, magnetic storms, solar storms and the like have to be taken into account. So success is a matter of having a good lean production, making sure that whatever you do is completed properly and you have good engineering skills in the relevant area.
We also need international know-how – for instance, at ICEYE we have people from more than 70 countries. This last point is something that worries me a bit, since within the current international conditions, many countries are changing their [rules] in terms of foreign workforce. It is one thing to be taken in account, in difficult geopolitical times.
TT: With your background in risk, crisis, and disaster management, what advice would you give to space startups on building resilience and adapting their business models during challenging times?
TV: This is really an important area in all engineering companies, but especially in space tech – and quite often you find significant holes in this area.
It is easy to forget risk management. So from the very first step, make sure that you have identified your risks, and make sure you have a program to manage those risks. Make a matrix on the likelihood of each risk and its potential impact. Remember that there are unknown risks, which you simply cannot identify. Create a contingency plan – when you have your risk management program, if worse comes to worst, you still have a contingency plan and your operation keeps on going.
Importantly, people are your source of innovation – but also your greatest risk. So 80% of problems are caused by human activity. You can theoretically divide your risks into human risks and technological risks. This type of categorization could help you create your risk management program.
TT: Given your experience with the Arctic Economic Council and other global organizations, how important are international collaborations for European space companies, and what opportunities do you see in this area?
TV: In Europe, there are a number of big and strong government-backed technological companies. Some European countires are shifting to an extent to support the startups even stronger, and this kind of approach – for new technology, rather than conventional technology – is needed, in order to have innovative companies that flourish, in parallel to big conglomerates.
Within Europe, the next level is of course the European Union, and also the European Space Agency. Unfortunately, both of these two organizations are characterized by bureaucracy, which can be really painful for scaleups and startups to handle, because they simply don’t have the resources needed to fulfil all the criteria needed. Certainly to get public funding you need to be proving that there is potentially added value to come. But indeed the bureaucracy element should be reduced in the future – and this is important for the EU, as well as for the ESA to consider.
And then, there is obviously the market. If you look into the three main markets – Asia, Europe, and the U.S. – there is a lot of interrelation. Within the past couple of years, the environment has really changed. We had a discussion a few years ago, considering a free trade agreement between Europe and the U.S. – it was never signed. It is really a challenging path to navigate for a startup or scaleup from Europe to get to the U.S. market – and it has become more so in the last couple of years. Protectionism is internationally increasing.
Finally, I would take the example of Asia, where there are a number of huge companies that have been able to combine the startup / scaleup thinking and innovation within a big conglomerate. So maybe that is something that the European companies should be looking into and learning from.
TT: How do you feel they have managed to achieve that – integrating the startup / scaleup thinking within big conglomerates?
TV: Well, I think that within the Asian cultures, these big conglomerates have a different role – a national role, which means that they work to develop their society, and the societal thinking is deeper in Asia, as compared to Europe and the U.S. Also, Europe has become mature. When it comes to the hardworking attitude in Asia, linked to this type of thinking – they are looking into new opportunities 24 hours a day, whereas Europeans are looking only for 8 hours a day.
TT: Looking ahead, what are your predictions for the next decade in space exploration and technology, and how can the European startups at Tech Tour Space 2024 prepare for these upcoming trends?
TV: There is a great expectation of a boom in the satellite industry. We have seen a lot of predictions that the current number of satellites will grow exponentially. So first of all, let’s prepare for that scenario. Let’s be a part of that, and let’s be active.
A leading piece of this development, importantly – and this is a message for both investors and for governmental & institutional decision-makers – is that we have a huge gap in launch capacity in Europe, and that needs to be urgently addressed. So also in this area, Europe needs to stand on its own feet.
TT: What are the key leadership qualities that you believe are essential for an entrepreneur to drive innovation and growth in the rapidly evolving space economy?
TV: Management skills – let’s start with that. Creating a great innovation or a new technology in the domain of space is one side of the coin. But managing a company to grow from a startup to a scaleup, to then become an industry player, is a whole other story. Combining these two skillsets is really, really difficult.
When it comes to key leadership qualities – you must be able to manage the cultural differences within your team; you have to know how to define clear goals for your staff and communicate them.
You have to be able to outline your strategy, communicate it, but hopefully also create it in collaboration with your team. So here’s how to do it – people become involved not by being told, but by being included.
TT: What is your personal advice to space tech startups, looking to make it?
TV: First of all, be brave. Secondly, remember that there will be moments where you think: “Will this ever work?” So create a bridge through this moment. You have one mouth and two ears. So listen, get help from more experienced industry players and take the suitable elements – you don’t have to accept everything you’ve been told. But if you’re told something, think about it. Pick up the fruits of what you were told, take the lesson and respect the experience. And be brave with your innovations. If you’re turned down – which you will be – don’t worry. Continue working, and the fruit of your work will be there when you believe in what you are doing and finally validate it.
When I look into business plans of different types of companies, quite often the real business case is lacking. So make sure you have a solid business case, and make sure you have a vision of the potential return on investment. Everybody understands that if you’re a startup, it is really hard to make a prediction – but create your vision or expectation. Estimate your good vision, your average vision, your bad vision – and make a potential calculation of the expected return on investment. If you don’t have that, you don’t get the investor interested. It’s about people – investors are looking into CEOs with these types of skills. You have to be able to create your business case with an expectation of your return on investment.
Importantly, also, I would like to remind that when you work around the Arctic areas, you take the indigenous communities and local people into account, and include them. You are able to have skilled workforce from that region, and remember that we are often working in an area where the nature is really vulnerable and delicate. So also make sure that this is included in your plans, and understand your role in the community.
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Join us at Tech Tour Space 2024 this October to meet with Tero Vauraste and a range of other movers and shakers in European space tech.
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