This article originally appeared in the December issue of Young Company Finance.

Scotland’s space tech sector is positioning itself as a hub for innovation, with ambitions to contribute over £4 billion annually to the economy by 2030. Through its recent sponsorship of Space Scotland, Burges Salmon aims to support this growing sector by providing legal expertise and fostering collaboration. Scott Fyfe, Senior Associate in the firm’s Commercial Space and Satellites team, discusses the motivations behind the partnership and how it benefits early-stage and scale-up space tech businesses.

What motivated Burges Salmon to sponsor Space Scotland, and how does this partnership align with the firm’s broader objectives in the space tech sector?

Space and, in particular space tech, is a key strategic focus for Burges Salmon. The sector is currently seeing stunning growth as space tech businesses harness satellite data and AI. With the potential of vertical launch capability, the sector is going to get even more attention and the growth that we’ve seen so far is only going to increase. Space Scotland is at the heart of the Scottish space sector, a market contributing in excess of £4bn per year to the economy, and plays a key role in this rapidly developing ecosystem, representing the interests of its members within the UK and abroad.  

At Burges Salmon we strive to be at the forefront of emerging technologies. Not only do we want to provide key expert legal advice to innovative space businesses but we want to be involved in shaping Scotland’s space sector for years to come. These dual ambitions align perfectly with Space Scotland. We’ll participate alongside members in working groups which are collaborating to solve key challenges faced by Scottish space and satellite businesses. 

How does your work with Space Scotland benefit early-stage and scale-up space companies in Scotland?

As part of our sponsorship of Space Scotland we offer benefits to members which they may not have otherwise had access to. Central to our offering is a free helpline where members can speak to a lawyer at Burges Salmon on any legal issue that they may need support with - everything from investment readiness and structuring through to commercial contracts, securing real estate, tax risk assessment and employing and retaining top talent. This resource will be valuable for all members but especially those that are early-stage or scaling up. Members will also be given access to our innovative Emerging Companies practice, which offers discounted legal costs, access to our free BScale legal document generator and, we hope, a long lasting and strategic relationship with our team of experts that specialises in supporting growing tech companies. 

What are the key challenges that space tech start-ups typically face, and how can they address them early in their journey?

Access to funding is a key challenge. Compared to other sectors space is relatively new and investors tend to stick with traditional markets that they’re much more familiar with. 

However, as an increasing number of success stories emerge and programmes such as the UK Space Agency’s Fusion programme connect early-stage space industry start-ups with investors, we can see a clear change of appetite. 

We’re also beginning to see an increase in government funding opportunities in the sector as well as foreign investment into Scottish and UK space companies. Organisations such as Space Scotland and Scottish Development International will be key in attracting foreign investment into the sector. 

Early-stage companies should be engaging with the various accelerator programmes which have been established to help companies get investment ready, such as the UK Space Agency Accelerator. This will help to ensure that when businesses start to look for funding, wherever that may be coming from, they are as ready as they can be and know more about what to expect. 

In addition, businesses looking to get investor ready can benefit from insights and support through our Emerging Companies practice. 

How is Burges Salmon preparing to address the future needs of the space tech industry, particularly in Scotland?

Space has long been a focus for Burges Salmon. Through our extensive work in the defence sector our Space and Satellites team has a deep knowledge and understanding of this complex, rapidly developing area and its unique commercial challenges. This, combined with our experience and focus on supporting early-stage businesses, means we’re ideally placed to help navigate future concerns for both growing companies and investors. Our partnership with Space Scotland means we’re hearing first-hand from space tech businesses to get a clear picture about the challenges they’re facing and have positioned ourselves to help members to overcome those issues.