In this episode, Jason Carvalho and Jeff Thornburg discuss the evolving landscape of the space industry, highlighting the significant shift from ambition to execution that occurred in 2025. They explore the impact of defense spending on the sector, the importance of aligning products with customer needs, and the necessity of building strong, experienced teams in startups. The conversation also touches on emerging technologies, the role of venture capital and StratFi in funding, and the critical need for interconnectivity among space systems. As they look ahead to 2026, they emphasize the importance of execution and product-market fit for founders and investors in the space industry.

Music Credit
“Also sprach Zarathustra” (intro), composed by Richard Strauss (public domain).
Recording used under Creative Commons Attribution 3.0 via Wikimedia Commons.

Sound Bites

• "2025 marked a shift from ambition to execution."
• "Data centers in orbit are a growing topic."
• "2026 is the year of proof and execution."

Chapters

00:00 The Evolving Space Industry Landscape

01:55 2025: A Year of Execution and Reality

05:45 Investment Trends and Market Dynamics

09:20 Navigating Capital: Venture vs. Strat-Fi

11:26 Building the Right Team for Success

20:33 Categories of Success and Failure in Space

26:16 Looking Ahead: Winners and Future Prospects

27:18 The Evolution of Space Industry Post-Pandemic

29:46 Defense Acquisition and Commercial Space Integration

32:43 Navigating Defense Timelines and Relationships

35:56 The Importance of In-Person Relationships

37:36 Innovation vs. Fragmentation in Space Systems

40:44 Preparing for Mini-Nova: Success and Learning

46:37 Identifying Hidden Risks for 2026

The SPAC wave promised liftoff—but reality hit hard. In this episode of Specific Impulse, hosts Jason Carvalho (Carvalho Capital) and Jeff Thornburg (CEO, Portal Space Systems) dissect the post-SPAC correction, the rise of defense-aligned investing, and why real space infrastructure—not hype—is finally having its moment.

🔍 In this episode, we cover:

• Why most space SPACs failed—and what comes next
• The myth of building “the next SpaceX”
• How defense funding is shaping the real space economy
• New blended capital models and secondary markets
• What space founders must do post-2024 to raise, build, and win

💬 “VCs are finally asking the right question: How does this space company actually become a business?” — Jeff Thornburg

Whether you're an investor, founder, or operator navigating the dual-use frontier, this is essential listening for understanding where space is really headed.

🎧 Listen on: SpecificImpulse.fm

🔗 Mentioned in This Episode:

• Creative Destruction Lab (CDL)
• US DoD & Space Force Budget Insights
• Palantir, Project Maven, SpaceX
• Silicon Valley Defense Group & SPAC trends

00:00 Introduction and Welcome
01:11 Setting the Stage: Space Economy 2.0
03:16 Segment One: The Tipping Point of 2024
04:04 Investment Trends and Market Corrections
08:25 The SPAC Era and Its Aftermath
11:14 Challenges and Opportunities in Space Tech
19:55 The Role of Defense in Space Investment
42:22 AI and Robotics: The Future of Space Exploration
46:14 Building Successful Space Tech Companies
50:43 Scaling a Business: The CEO's Role
52:24 Aligning Sales and Engineering
54:53 The Importance of Leadership and Mentorship
55:25 Fractional Executives and Pricing Strategies
56:52 Building a Strong Network
59:42 Recommended Reading for Executives
01:03:22 The Role of Vision in Space Tech
01:11:51 Manifest Destiny in Space
01:16:28 NASA's Future and Commercial Space
01:29:15 Global Space Ambitions and Cooperation
01:35:56 The Future of Space Companies
01:37:45 The Future of Telecom: Satellite-Based Internet
01:39:09 Leapfrogging Traditional Infrastructure: India and Africa
01:39:57 China's Independent Space Ambitions
01:40:27 The New Space Race: Infrastructure and Investment
01:40:54 Emerging Technologies and the Future
01:47:24 The Role of NASA and Government Policy
01:59:13 Global Space Collaboration and Challenges
02:04:26 The Impact of Leadership and Policy on Space Innovation

Welcome to Episode 2 of 'Specific Impulse,' the podcast that propels you through the universe of space technology and exploration. I'm your co-host, Jason Carvalho, joined by my co-host Jeff Thornburg. Today, we take a deep dive into the engineering marvels and challenges behind the development of the Raptor Engine.

In this episode, we explore:

• Engineering Hurdles: The major challenges faced during the Raptor Engine's initial development and how the team tackled them.
• Breakthroughs: Unexpected innovations that significantly impacted the engine's design and performance.
• Lessons Learned: Key takeaways from the Raptor Engine project that could benefit future rocket engine developments.
• Technical Perspective: An explanation of the key design principles behind the Raptor Engine and its importance for space exploration.
• Fuel and Combustion: The advantages and challenges of using methane as a fuel.
• Materials and Manufacturing: Critical material choices and the role of advanced manufacturing techniques like 3D printing.
• Testing and Validation: Significant hurdles during the testing phase and how they were overcome.
• Integration with SpaceX Missions: The role of the Raptor Engine in SpaceX's broader mission goals.
• Future of Rocket Propulsion: Trends and advancements in rocket propulsion technology.

Join us as Jeff shares exclusive insights into SpaceX’s journey from 2011 to 2015, including the development of the Raptor engine and the transformative reusability of rockets. Whether you're an engineer, investor, or space enthusiast, this episode is packed with fascinating details you won't want to miss.

Key Milestones Discussed:

• COTS Demonstration Flight (2011)
• First Commercial Cargo Flight to ISS (2012)
• Falcon 9 Upgrade and Reusability Milestones (2013-2014)
• First Successful Droneship Landing Attempt (2015)
• CRS-7 Failure and Redesign (2015)

About Our Co-Host: Jeff Thornburg, co-host of 'Specific Impulse,' led the development of the groundbreaking Raptor engine at SpaceX, which became the world’s first methane-powered full-flow staged combustion cycle rocket engine. With a rich background at NASA, Aerojet, and the Air Force Research Laboratory, Jeff brings unparalleled expertise in propulsion engineering.

Tune in as we ignite the engines and set course for the stars!

Listen to the episode now and subscribe to 'Specific Impulse' for more deep dives into space technology and exploration.

Welcome to the inaugural episode of our series where we embark on an exploratory journey into the burgeoning NewSpace economy. This episode serves as your gateway into understanding the dynamic landscape of the space sector, unraveling the wealth of opportunities it presents for investors and engineers alike, alongside the formidable challenges that startups encounter.

The NewSpace economy is rapidly reshaping our approach to space exploration and commercialization, moving beyond the confines of traditional space agencies to a more inclusive and innovative arena. Here, we'll dissect the current state of the industry, highlight key players, and provide insights into the technological advancements propelling us forward.

But it's not all smooth sailing; the path to stellar success is fraught with obstacles. We'll delve deep into the hurdles startups face, from securing funding to navigating regulatory frameworks, and the resilience required to overcome them. This episode not only sets the stage for the season but also equips listeners with a comprehensive understanding of the space sector's potential and pitfalls.

Join us as we explore the final frontier through the lens of the NewSpace economy, offering a blend of expert interviews, industry analysis, and forward-looking discussions. Whether you're an investor eyeing the next big opportunity, an engineer dreaming of the stars, or simply a space enthusiast, this episode is your launchpad into a universe of possibilities.