EPISODE SUMMARY
This week’s Pathfinder podcast features Chris Kemp, the founder and CEO of Astra, the publicly-traded launch company based out of Alameda, CA that went public via SPAC in the summer 2021.
EPISODE NOTES
This week’s Pathfinder podcast features Chris Kemp, the founder and CEO of Astra, the publicly-traded launch company based out of Alameda, CA that went public via SPAC in the summer 2021.
Since then, Astra’s valuation has seen a dramatic decline, plummeting from a peak of approximately $4B to a mere $67M today. Chris paints a vivid picture of two contrasting narratives. On one hand, there’s a satellite propulsion business, acquired through the purchase of startup Apollo Fusion, with a 278-engine backlog valued between $70M and $83M (based on an average selling price of $250-300K). This business has a distant, yet potential opportunity to secure contracts that could significantly change its trajectory. In contrast, the launch business is in jeopardy as capital evaporates. Astra’s Rocket 4 must not only launch successfully but also prove its consistency to secure significant commercial deals.
Many of our listeners are well-acquainted with Astra’s struggles, given the numerous reports on the company’s launch failures and recent wave of departures. Today, our conversation with Chris primarily focused on the future of Astra and how to think about what upside case may remain for the business. We chat:
- Rocket 3 vs Rocket 4: why Rocket 3 failed and the lessons applied to Rocket 4
- The status of commercial and government contracts
- The state of financing for launch companies
- Valuing Astra’s satellite propulsion business
- Key lessons learned as CEO
- What does the future hold for Astra?
And much more…
• Chapters •
00:00 – Introduction
00:56 – Current state of Astra
03:04 – Origins of the business model
07:26 – Key challenges today
11:49 – Rocket 4’s specs
16:13 – Contracts with NASA/Space Force
17:09 – Improving reliability from Rocket 3 to 4
21:30 – Rocket 4 engines
24:24 – Importance of strategic partnerships
29:07 – Astra’s manufacturing facility
30:03 – What would you have done differently?
33:25 – Bull-case for the prop business
39:15 – Current financial health
41:27 – Team construction and retention
44:10 – What is the investment case for Astra today?
47:03 – Lessons learned as CEO
49:57 – Conclusion