Revolutionizing Risk: Innovative Derivatives to Support the Evolution of Commercial Space

With the ViaSat-3 insurance claim expected to eat up 80% of the $550M premium income in the space insurance market in 2023, it has become clear that the space economy needs access to alternative forms of risk management to address the financial challenges stemming from Space Weather, Orbital Debris, Launch Delays, and more. 

That is why Allocation.Space is adapting derivatives used in other mature markets to the unique risks inherent in getting to space and maintaining consistent operations while there. These products are designed to hedge the variability in revenue due to event risks and the volatility in the prices of the resources critical to the New Space Economy. With launch costs projected to continue their decline, controlling input costs, such as propellants, will become vital.

Through a singular trading platform bringing commercial hedgers and risk seekers together, we aim to introduce new ways for financial institutions to participate in the growth of the space economy while spreading the risks across the financial markets. 

Our article in Finance Derivatives outlines our vision for the future of derivatives in space and their place alongside insurance as an effective risk management tool.

Seraphim picks startups for eleventh accelerator program.

Members of Seraphim’s eleventh bi-annual accelerator program, which is being run jointly by its U.K.-based Seraphim Space Accelerator and Generation Space, its U.S. arm based in San Francisco, are:

Astrolight (Lithuania), which is developing optical communications technology for low Earth orbit satellites.

Spacecraft docking technology developer Kurs Orbital (Italy).

GalaxEye (India), which is building a multi-sensor imaging satellite for Earth observation.

Allocation Space (U.S.), a financial services firm developing trading tools for the space industry.

EarthEye (Singapore), which is developing an online marketplace for ordering geospatial data and insights.

Amini (U.S.), a startup with plans for an Africa-focused constellation for connecting remote Internet of Things (IoT) devices.

Orbital Composites (U.S.), a 3D-printing specialist aiming to improve satellite payload capacity.

In-space refueling station developer SPACEIUM (U.S.)

Virtus Solis (U.S.), which is developing a commercial space-based solar power system.