Course Syllabus
Course Description
Overview
This course will explain the structure, funding methods, investment patterns, and financial performance of the global space industry, with a particular focus on the US commercial space industry. The course will be taught online with weekly synchronous, live discussion sessions.
Course Justification
The commercial space industry has exploded in recent years. Globally, the space economy in 2023 was worth $6300 billion, double its value in 2010, and is predicted to reach $1.8 trillion by 2035 (McKinsey and World Economic Forum, 2024). A recent report by the Space Foundation (The Space Report 2024) found the following: Commercial space products and services represent the largest segment of the space economy at $321.4 billion, followed by commercial infrastructure and support industries ($123.8 billion). The U.S. Government space budget was at $74.0 billion and other non-U.S. government space budgets were at $51.2 billion. So commercial (non-governmental) activities account for 78% of total space economy revenues.
Three powerful and interrelated trends have transformed the space economy since the Space Shuttle’s termination in 2011 left American companies and government agencies without a national path to Earth orbit. First is the increasing reliance of space agencies, especially NASA, on private companies to provide space services under fixed price contracts. The second and even more fundamental trend is the massive decline in launch costs (from $18,500/kg to $1,400/kg) driven mostly by SpaceX’s relentless pursuit of efficiency, scale, and rocket reusability. The third major trend is the internationalization of space, with the rise of China taking center stage. This course will analyze the financial and economic impact of these trends on the funding, operation, and valuation of space companies.
The space industry looks financially very different from other capital and technology intensive industries. Except for the established defense contractors funded with government contracts—the largest of which may soon exit the space business--the commercial space industry is dominated by private (unlisted) companies; relies almost exclusively on government contracts and venture capital for funding, rather than debt and retained earnings as in other industries; and faces very high bankruptcy costs due to extreme asset-specificity and rapid obsolescence. This course will describe and assess how these characteristics shape the financial management of space companies.
Course Materials
The required textbook for this course is:
Chad Anderson, The Space Economy (2023, John Wiley & Sons, Inc. Hoboken, NJ). Available online from Amazon (https://www.amazon.com/Space-Economy-Capitalize-Greatest-Opportunity/dp/1119903726) or directly from the Space Capital website (https://www.spacecapital.com/space-economy-book) at the same price ($18.00 or $23.12 for hardback (recommended).
The other required reading materials for this course will either be articles freely available online (at the URLs listed) or Technical Notes and Cases that can be downloaded as Coursepack Megginson Space Finance EMAD 5642 from Harvard Business Publishing Education (https://hbsp.harvard.edu/import/1276605). The Recommended Readings for each week’s class are described in the detailed weekly class outline later in this syllabus. Journal articles (such as Journal of Economic Perspectives) can be downloaded through the OU Libraries. Simply login to OU Libraries (https://libraries.ou.edu) using your 4X4 ID number and password; then click on the ”Journal Search” Icon and type in the journal name when prompted.
Required Article and Case Readings in the Coursepack or Downloadable:
Week 1. William Megginson, “The Financial Economics of Spaceflight.” University of Oklahoma Working Paper. March 3, 2025. (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4901992).
Week 2. Starship: The Next Giant Leap. Space Capital. August 1, 2024. (https://www.spacecapital.com/publications/starship-next-giant-leap).
Week 3. The Race for Space Superiority. Space Capital. July 9, 2024 (https://www.spacecapital.com/publications/race-for-space).
Week 4. Matthew C. Weinzierl, Mehak Sarang. The International Space Station, Principal-Agent Problems, and NASA's Quest to keep Humans in Space. Publication Date: May 2021. Product Number: 721054-PDF-ENG. In Coursepack, Required Readings.
Week 5. The GEOINT Playbook. Space Capital. October 27, 2022. (https://www.spacecapital.com/publications/geoint-playbook).
Week 6. Matthew C. Weinzierl, Nicole Tempest Keller, Brendan Rosseau. Space Financing. Publication Date: Mar 2022. Product Number: 722047-PDF-ENG. In Coursepack, Required Readings.
Week 7. The GPS Playbook. How a Space-Based Technology Generated the Largest Venture Outcomes in History. Space Capital and Silicon Valley Bank. March 28, 2022 (https://www.spacecapital.com/publications/the-gps-playbook-report).
Week 8. Jeremy Jurgens, and Ryan Brukardt, Space: The $1.8 Trillion Opportunity for Global Economic Growth. World Economic Forum in knowledge partnership with McKinsey & Company, 8 April 2024 (https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/space-the-1-point-8-trillion-dollar-opportunity-for-global-economic-growth).
Recommended Reference Book
Though not required, the brand-new book described below is highly recommended for students wishing to learn about the Space Industry from two of the leading academic experts in the field:
Matthew Weinzierl and Brendan Rosseau, Space to Grow: Unlocking the Final Economic Frontier (Harvard Business Review Press, 2025). Available online at (https://www.amazon.com/Space-Grow-Unlocking-Economic-Frontier/dp/1647827167).
Course Grades
Breakdown
|
Graded Activities & Assignments |
Points |
Percentage |
|
Live Sessions (Participation) |
20 |
10% |
|
Reading Summaries |
80 (8 weeks X 10 points each) |
40% |
|
Project |
100 |
50% |
|
Total |
200 |
100% |
Scale
A = 90-100%; B = 80-89%; C = 70-79%; D = 60-69%; F = < 50%
Course Components
Live Sessions
Each week, our class will meet in real time. During our time together, I will provide a live lecture using PowerPoint and answer any questions you have. If your schedule prevents you from joining us, you can watch the recording of the session later. Students who cannot attend live will earn participation points by reviewing the recording and submitting a brief summary.
Module Summaries
The required readings describe the institutional detail of various components of the space economy. Students should write and post a one- or two-page (4-8 paragraph) summary of each article, describing the key points presented therein and discussing what they learned.
Project
Each student will write a detailed analysis of a segment of the space economy of their choice. Various possibilities will be offered, but the student should select the topic they find most interesting, and a synopsis of your planned project should be sent to me by the third week of class. The report should be at least 15 pages long (double-spaced type) and should have at least twenty (academic, news media, or technical) references and should encompass significant financial analysis. You can work on this in pairs, if you wish, but grading of such co-authored work will be judged at a higher standard than sole-authored projects.
Course Policies
Communication Plan
- If you have general questions about the class (assignments, class logistics, due dates, etc.), post a question in the HELP BOARD in the “Start Here” module. You can post questions about the course here throughout the semester.
- If you have a question about the learning material, post your questions in the Pre-Class Question Board.
- If you have a personal question(grades, feedback, requests for special accommodation, etc.) please send me an email (wmegginson@ou.edu). During the work week (Monday-Friday), you can expect a response from me within 24 hours. During weekends (Saturday-Sunday), you can expect a response from me within 48 hours.
Late Policy
As a general rule, I do not accept late work. You may work ahead but avoid falling behind.
University of Oklahoma Academic Policies and Student Support
Catalog
Please familiarize yourself with the student catalog: http://catalog.ou.edu/courses/courses.htm
Online Library
Students can use the University of Oklahoma library by visiting http://libraries.ou.edu and signing in with your 4X4 university ID number.
Academic Misconduct
In addition to the course conduct policies outlined by your professor in the Course Syllabus in the online classroom, please review the Graduate Student Handbook.
It is the responsibility of each student to be familiar with the definitions, policies, and procedures concerning academic misconduct. The Student Code is available from the Office of the Vice President for Student Affairs, and is contained in the Student's Guide to Academic Integrity, available at: http://integrity.ou.edu/students_guide.html
This site also defines misconduct, provides examples of prohibited conduct, and explains the sanctions available for those found guilty of misconduct.
Plagiarism
Plagiarism is the most common form of academic misconduct at OU. There is basically no college-level assignment that can be satisfactorily completed by copying. OU's basic assumption about writing is that all written assignments show the student's own understanding in the student's own words. That means all writing assignments, in class or out, are assumed to be composed entirely of words generated (not simply found) by the student, except where words written by someone else are specifically marked as such with proper citation. Including other people's words in your paper is helpful when you do it honestly and correctly. When you don't, it's plagiarism.
Go to http://integrity.ou.edu/students_guide.html to learn more about the rules for avoiding plagiarism. Watch this video and then test your skills in avoiding plagiarism by taking this plagiarism tutorial and quiz.
Reasonable Accommodation for Disabilities
The University of Oklahoma is committed to providing reasonable accommodation for all students with disabilities. Students with disabilities who require accommodation in this course should contact their professor as early in the semester as possible.
Students with disabilities must be registered with the Disability Resource Center prior to receiving accommodation in this course.
If you have a disability and you would like to make a request for reasonable accommodation, please see the Graduate Student Handbook or visit the Disability Resource Center and other disability services at OU at: http://drc.ou.edu/
Adjustments for Pregnancy/Childbirth Related Issues
Should you need modifications or adjustments to your course requirements because of documented pregnancy-related or childbirth-related issues, please contact me as soon as possible to discuss your options. Generally, modifications will be made where medically necessary and similar in scope to accommodations based on temporary disability. Please see http://www.ou.edu/content/eoo/faqs/pregnancy-faqs.html for commonly asked questions.
Title IX Resources
For any concerns regarding gender-based discrimination, sexual harassment, sexual misconduct, stalking, or intimate partner violence, the University offers a variety of resources, including advocates on-call 24/7, counseling services, mutual no contact orders, scheduling adjustments, and disciplinary sanctions against the perpetrator. Please contact the Sexual Misconduct Office 405-325-2215 (8-5, M-F) or OU Advocates 405-615-0013 (24/7) to learn more or to report an incident.
Religious Holidays
It is the policy of the University to excuse absences of students that result from religious observances and to provide for the rescheduling of examinations and additional required classwork that may fall on religious holidays without penalty. It is the responsibility of the student to make alternate arrangements with the instructor at least one week prior to the actual date of the religious holiday.
Registration and Withdrawal
If you choose to withdraw from this course, you must complete the appropriate University form and turn the form in before the deadline. If you stop attending the course and doing the coursework without doing the required paperwork, your grade will be calculated with missed homework and examination grades entered as zero. This could result in receiving a grade of F in the course. Deadlines are shown in the Academic Calendar, which is available from the Office of Admissions and Records at: http://www.ou.edu/admissions/home/academic_calendar.html
Student Grievances
Please review the Graduate Student Handbook for more information about the process of submitting a formal grievance.
Detailed Course Outline and Assignments
Week 1 (March 13): Overview of the Global Space Economy
- Course Overview
- Overview of Global Space Economy and Classification of Space Industries
- Privatization of Space Activities Propelled by Declining Launch Costs
- Brief Summaries: Militarization of Space and Legal Environment of Space
- Financing Space Exploration and Commercial Development
Required Reading (complete summary by March 20):
William Megginson, “The Financial Economics of Spaceflight.” University of Oklahoma Working Paper. March 3, 2025.
(https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4901992).
Recommended Readings:
Matthew Weinzierl. “Space, the Final Economic Frontier.” Journal of Economic Perspectives 32(2), Spring 2018, pp. 173-192. Download from OU Libraries after signing in.
Matthew C. Weinzierl, Brendan Rosseau. The United States National Security Apparatus, Multipolarity, and the Rise of Commercial Space. Publication Date: March 2022 (Revised June 26, 2022). Product Number: 722063-PDF-ENG. In Coursepack, Recommended Reading.
“2024 in Spaceflight.” Wikipedia. March 4, 2025.
(https://en.wikipedia.org/wiki/2024_in-spaceflight).
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Week 2 (March 27): Declining Launch Costs and the Privatization of Space Activities
- Timeline of Development of Space Exploration and Commercialization
- The Rise and Rise of SpaceX and its Fundamental Role Driving Down Launch Costs
- Private Competition and Private Financing: ULA, Blue Origin, and the Rest
- How will 1,000 Starships Impact the Launch Business?
Required Reading (complete summary before synchronous class):
Starship: The Next Giant Leap. Space Capital. August 1, 2024.
(https://www.spacecapital.com/publications/starship-next-giant-leap).
Recommended Readings
“List of Falcon 9 First Stage Boosters.” Wikipedia, 9 March 2025. (https://en.wikipedia.org/wiki/List_of_Falcon_9_first-stage_booster).
Joan Jane and Blanca Guitard, Starship SpaceX. The Disruption in the Space Value Chain. IESE Business School. Publication Date: February 2023. Product number: HBP# IES984. In Coursepack, Recommended Readings.
Matthew Weinzierl, Kylie Lucas, and Mehak Sarang. 2021. SpaceX, Economies of Scale, and A Revolution in Space Access. Harvard Business School Case 9-720-027. In Coursepack, Recommended Reading.
“Rockets Galore. Can Anyone Realistically Challenge SpaceX’s Launch Supremacy?” Economist. December 7, 2024. (https://www.economist.com/science-and-technology/2024/12/04/can-anyone-realistically-challenge-spacexs-launch-supremacy).
Eric Berger, Annual Power Rankings of US Launch Companies Finds a Shake-up at the Bottom.” ArsTechnica.com. January 7, 2025.
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Week 3 (April 3): Pure Science and Military Sectors of the Space Economy
- NASA and Space Exploration
- Space Tech Companies
- US Space Defense and Reconnaissance: DOD, USSF, NSA and Others
- Anti-Satellite Weapons and the Growing Problem of Space debris
- Non-US Militaries in Space (China, Europe, India, Japan, Others)
Required Reading (complete summary before synchronous class):
The Race for Space Superiority. Space Capital. July 9, 2024.
(https://www.spacecapital.com/publications/race-for-space).
Recommended Readings
Kenneth Chang, “Texas Company’s Lander Dies on Moon the Day After Toppled Landing.” New York Times, March 7, 2025. (https://www.nytimes.com/2025/03/07/science/intuitive-machines-moon-lander-dead.html).
Marc J. Berkowitz, “Increasing the Efficiency of the U.S. National Security Program.” Spacenews.com, February 13, 2025. (https://spacenews.com/increasing-the-efficiency-of-the-u-s-national-security-space-program).
Charles S. Galbreath, Building U.S. Space Force Counterspace Capabilities: An Imperative for America’s Defense. Mitchell Institute Policy Paper Vol. 42. August 2023. (https://www.mitchellaerospacepower.org/building-u-s-space-force-counterspace-capabilities-an-imperative-for-americas-defense).
Tabby Kinder, “How Silicon Valley’s ‘Oppenheimer’ Found Lucrative Trade in AI Weapons.” Financial Times, March 28, 2024. (https://www.ft.com/content/ce6f96f8-6ab8-4089-b7db-f99db22c2071).
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Week 4 (April 10): Human Space Exploration, Space Law, and the Internationalization of Space
- The International Space Station and Its Private Sector Replacement(s)
- The Artemis Accords and Plans for Lunar Landings and Development
- The International Legal Environment of Space: The Outer Space Treaty of 1967
- US-Specific Legislation on Space Access, Development, and Ownership of Space Resources
- China’s Rapidly Growing Space Program
- Other International Space Programs (Europe, India, Japan, Others)
Required Reading (complete before synchronous class):
Matthew C. Weinzierl, Mehak Sarang. The International Space Station, Principal-Agent Problems, and NASA's Quest to keep Humans in Space. Publication Date: May 2021. Product Number: 721054-PDF-ENG. In Coursepack, Required Reading.
Recommended Reading
“List of Space Stations.” Wikipedia, March 2, 2025. (https://en.wikipedia.org/wiki/List_of_space_stations).
The Artemis Accords. National Aeronautics and Space Administration, March 9, 2025 (https://www.nasa.gov/artemis-accords).
Gershon Hasin, “Who Makes the Rules for the New Space Economy?” Yale Insights, 10 October 2024 (https://insights.som.yale.edu/insights/who-makes-the-rules-for-the-new-space-economy).
Matthew Weinzierl and Angela Acocella. 2017. Planetary Resources Inc, Property Rights, and the Regulation of the Space Economy. Harvard Business School Case 9-717-053. In Coursepack, Recommended Readings.
“Chinese Space Program.” Wikipedia, February 18, 2025.
(https://en.wikipedia.org/wiki/Chinese_space_program).
Peggy Hollinger, “UK gives green light to German start-up for vertical rocket launch.” Financial Times, January 16, 2025.
(https://www.ft.com/content/a5d4e308-556a-41d2-9af3-874e1e40de27).
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Week 5 (April 17). The Satellite Economy
- LEO, MEO, and GEO Satellites Classified
- The Evolution of the Commercial Satellite Business
- Communications vs Earth Monitoring Satellites
- Selling Satellite Services and Data
Required Reading (complete summary before synchronous class):
The GEOINT Playbook. Space Capital. October 27, 2022.
(https://www.spacecapital.com/publications/geoint-playbook).
Recommended Readings
Large Constellations of Low-Altitude Satellites: A Primer. Congressional Budget Office, May 2023 (https://www.cbo.gov/publication/59175).
“Communications Satellite.” Wikipedia, January 31 2025.
(https://en.wikipedia.org/wiki/Communications_satellite).
Arpita Agnihotri and Saurabh Bhattacharya. 2021. SpaceX: Starlink’s Uncertain Demand Trajectory. Ivey Publishing W21036. In Coursepack, Recommended Readings.
Joshua Lev Kreiger, Abishek Nagaraj, and James Barnett. 2022. Tomorrow.io Goes to Space. Harvard Business School Case 9-822-085. In Coursepack, Recommended Readings.
Peggy Hollinger, “Europe signs €10.6bn Iris² satellite deal in bid to rival Elon Musk’s Starlink, Financial Times, December 16, 2024 (https://www.ft.com/content/8e75ed31-0c72-4160-b406-1ca6aa36a84f).
Andrew Jones, “First Launch of Long March 8A Sends Second Group of Guowang Megaconstellation Satellites Into Orbit.” Spacenews.com, February 11, 2025.
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Week 6 (April 24): Financing Space Companies
- The Private Capitalization of Space Companies
- The Enduring Importance of Government funding, Especially Fixed-Price Contracts
- Venture Capital’s Role in Funding Space Startup and Early-Stage Companies
- Private Equity and Debt Financing
- Financial Returns to Space Investments
- Why are So Few Space Companies Publicly Traded?
Required Reading (complete summary before synchronous class):
Matthew C. Weinzierl, Nicole Tempest Keller, Brendan Rosseau. Space Financing. Publication Date: Mar 2022. Product Number: 722047-PDF-ENG. In Coursepack, Required Reading.
Recommended Reading
Expanding Horizons: The Down to Earth Guide to Investing in Space. PWC in association with UK Space Agency, May 2023. (https://www.strategyand.pwc.com/uk/en/insights/expanding-frontiers-down-to-earth-guide-to-investing-in-space.html).
Hannon, Tom (Producer) and Peggy Hollinger (Presenter). “Moon Rush: The Launch of a Lunar Economy.” Financial Times, October 18, 2023. (https://www.ft.com/video/daa5f78b-12c5-4e11-8e52-a8baf28a6578).
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Week 7 (Friday, April 25): Exiting Space Company Investments
- Possible exits: IPOs/SPACs, PE Buyout, Operating-Company Acquisition, Bankruptcy
- Mergers Happen—But Thus Far Less Frequently than In Other Industries
- Buyouts and Acquisition Relatively Common
- Very Few IPOs; Many Bankruptcies
Required Reading (complete summary before synchronous class):
The GPS Playbook. How a Space-Based Technology Generated the Largest Venture Outcomes in History. Space Capital and Silicon Valley Bank. March 28, 2022.
(https://www.spacecapital.com/publications/the-gps-playbook-report).
Recommended Reading
Q4 2024 Space IQ Space Investment Quarterly. Space Capital, January 14, 2025 (https://www.spacecapital.com/publications/space-investment-quarterly-q4-2024).
Tabby Kinder, George Hammond, Stephen Morris, and Ivan Levingston, “SpaceX’s Valuation Soars to $350bn in Employee Share Deal.” Financial Times, December 10, 2024. (https://www.ft.com/content/6aa90bf6-e3a2-4677-bfa9-296922a62ab1).
“Space Startup Exits.” Spacefund.com, December 15, 2020 (https://spacefund.com/exits).
Sandra Erwin, “Space venture firm predicts industry shakeup.” Spacenews.com, January 23, 2025 (https://spacenews.com/space-venture-firm-predicts-industry-shakeup).
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Week 8 (May 1): Financing Future Space Businesses
- The Potential of Space Mining
- The Potential of Space Tourism
- The Potential of Space Manufacturing
- The Potential of Space Cargo (Starship deliveries on Earth)
- Servicing Space Exploration and Transport
Required Reading (complete summary before synchronous class):
Jeremy Jurgens, and Ryan Brukardt, Space: The $1.8 Trillion Opportunity for Global Economic Growth. World Economic Forum in knowledge partnership with McKinsey & Company, 8 April 2024 (https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/space-the-1-point-8-trillion-dollar-opportunity-for-global-economic-growth).
Recommended Reading
“Space Manufacturing.” Wikipedia, February 25, 2025 (https://en.wikipedia.org/wiki/Space_manufacturing).
“Dreams of asteroid mining, orbital manufacturing and much more.” Economist, December 3, 2024 (https://www.economist.com/science-and-technology/2024/12/03/dreams-of-asteroid-mining-orbital-manufacturing-and-much-more).
“Space Tourism.” Wikipedia, March 7, 2025 (https://en.wikipedia.org/wiki/Space_tourism).
Rory McDonald, Timothy Buehn, Aditi Ghai, and James Heffelfinger, Disrupting Defense at Anduril Industries. Publication Date: August 25, 2022. Product Number: 9-622-081. In Coursepack, Recommended Readings.
Instructor Bio
Bill Megginson is Professor and Price Chair in Finance at the University of Oklahoma’s Michael F. Price College of Business. He is also Finance Area Editor for Journal of International Business Studies and Visting Professor at University of International Business and Economics (Beijing). He was Editor of the Journal of Corporate Finance from 2018-2020, and from 2014-2019 was the Saudi Aramco Chair Professor in Finance at King Fahd University of Petroleum and Minerals in Dhahran, Saudi Arabia. From 2002 to 2007, he was a voting member of the Italian Ministry of Economics and Finance’s Global Advisory Committee on Privatization. During spring 2008, he was the Fulbright Tocqueville Distinguished Chair in American Studies and Visiting Professor at the Université-Paris Dauphine and received the University of Oklahoma’s top research award, a George Lynn Cross Research Professorship, in April 2010.
Professor Megginson's research interest has focused in recent years on the privatization of state-owned enterprises, sovereign wealth fund investments, venture capital and private equity fund-raising and investments, and investment banking principles and practices. He has published refereed articles in several top academic journals, including the Journal of Economic Literature, the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, the Journal of International Business Studies, and the Journal of Law and Economics. His co-authored study documenting significant performance improvements in recently privatized companies received one of two Smith Breeden Distinguished Paper Awards for outstanding research published in the Journal of Finance during 1994. He is author or co-author of nine textbooks.
Professor Megginson’s research has been frequently cited in academic and professional publications. His articles have been downloaded over 80,000 times from the Social Sciences Research Network, and his books and articles have been cited almost 29,000 times (according to Google Scholar). His co-authored privatization survey article, published in the Journal of Economic Literature in 2001, is the eighth most widely cited finance article published since 2000, and the most widely cited article published in 2001. He has served as a privatization consultant for the New York Stock Exchange, the OECD, the IMF, the World Federation of Exchanges, the European Bank for Reconstruction and Development, and the World Bank. He has visited 85 countries during his lifetime, and has lived in Spain, Pakistan, France, and Saudi Arabia, in addition to the United States.
Dr. Megginson has a B.S. degree in chemistry from Mississippi College, an MBA from Louisiana State University, and a Ph.D. in finance from Florida State University. Prior to entering academia in 1986, he worked for five years as a petroleum chemist at the world's largest styrene monomer plant and at the largest independent petroleum refinery in the United States. He has been a Visiting Professor at Duke University, Vanderbilt University, the University of Zurich, the University of Amsterdam, Bocconi University, and Université-Paris Dauphine.
March 10, 2025