Space Business Podcast #146 | Space Financing | Justin Stevens, Overlap Holdings
Jun 17, 2025
Justin Stevens, founder and CEO of Overlap Holdings and a seasoned investor from Apollo Global Management, dives deep into the intricacies of space financing. He discusses why traditional investment methods may not support the space sector effectively. The conversation highlights the importance of balancing debt and equity in startup funding, the challenges of accessing government contracts, and emerging investment trends. Justin shares insights into the future of space ventures and the economic potential beyond Earth, blending finance with fascinating frontier technology.
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Underutilization of Debt in Space
- Debt is underutilized in space financing despite being a useful tool for scaling companies.
- Debt complements equity by extending runway and reducing dilution when used wisely at the right stages.
Use Debt From Series B Onwards
- Use debt to extend runway with minimal equity dilution from Series B onwards.
- Avoid taking on debt too early as it can increase risk without enough maturity.
Types of Debt in Frontier Tech
- Different types of debt in frontier tech vary by underwriting: cash flow, asset collateral, valuation-based, and hybrid revenue-based.
- Each has different risk profiles and applicability depending on company maturity and assets.
