Validating the problem<\/strong><\/p>\n\n\n\nOf course, you already have an idea of the SOLUTION. What your product will do, maybe even what it will look like. Well, this is how the human mind works. It\u2019s not just you. But it\u2019s still a trap. You have to take a step back. Actually, a few steps back.<\/p>\n\n\n\n
From your assumed solution, trace back what PROBLEM the customers would solve with it. But of course the other way around is always much better. Find problems and think of ways to solve it.\n<\/p>\n\n\n\n
Really important, if it\u2019s a \u201ctragedy of commons\u201d type problem, that is, it\u2019s a problem for everybody<\/p>\n\n\n\n
(wildfires, climate change, space debris), it\u2019s going to be very easy to validate the problem, and VERY hard to find anyone to pay for the solution. Still, you have to have an assumption. <\/p>\n\n\n\n
Example. <\/strong><\/p>\n\n\n\nYour product idea is a software solution that uses telescopic images of asteroids to determine which contains what materials. On the surface, this is an amazing product idea. Hip, sexy.<\/p>\n\n\n\n
Let\u2019s take a step back. Who would be interested? For instance, asteroid mining companies.<\/p>\n\n\n\n
What question to ask them? <\/p>\n\n\n\n
Should you ask them \u201chey, this is the product I\u2019m making: [lengthy description]. Would you like to use it when it\u2019s ready?\u201d<\/p>\n\n\n\n
No. Objection, your honour. Leading the witness.<\/p>\n\n\n\n
How about \u201cHow do you currently evaluate which asteroid to pick when planning your exploratory mission?\u201d<\/p>\n\n\n\n
Much better question, because they might give you more info than you initially expected. For instance, their answer can be in three categories:<\/p>\n\n\n\n
\n\u201cWe have an assumption, but currently we don\u2019t care. We\u2019ll cross this bridge when we get there, 15 years from now.\u201d \n\u2192 you didn\u2019t invalidate the problem, but you might be too early. Time to think in 4 dimensions, Marty. Think of ways to create value with your core value proposition in the meantime, possibly on Earth. But all in all, back to the drawing board!<\/li>\n\n\n\n \u201cThere is an open NASA database with near-earth asteroids already, and we mostly know the metal content of most of them. And it\u2019s free.\u201d\n\u2192 problem disqualified. Lucky you haven\u2019t spent six months building the software.<\/li>\n\n\n\n \u201cWell, we have an in-house team that does the computation. It takes us 2-3 days to analyse an asteroid. And we need to pick the first one soon for our exploratory mission.\u201dThere is no way to sugarcoat it. Talk to the potential customers! Even if (especially if!) you won\u2019t be able to actually sell them anything in 10 years.<\/p>\n\n\n\n
If you\u2019re a first time entrepreneur and you have no idea how to go about, it here\u2019s a crash course in one paragraph. <\/p>\n\n\n\n
Pick 50 people from your ideal customer persona on LinkedIn, and add each of them as a connection. The initial message can be along the lines of \u201cHi, I\u2019m a student\/researcher\/entrepreneur and I\u2019m working on a solution and trying to validate a concept that would solve [problem] for [industry\/niche]. Could you spare 15 minutes to answer some questions?\u201d<\/p>\n\n\n\n
Most of these people will ghost you. That\u2019s the reality of the game. However, statistically, some of them will answer. And if no one was interested in solving the problem enough to warrant a response\u2026 well, there\u2019s your answer. The problem\/pain point is not painful enough. Again, back to the drawing board.<\/p>\n\n\n\n
There are three meaningful deliverables resulting from this exercise:<\/p>\n\n\n\n
\nYour Ideal Customer Persona (ICP) – validated<\/li>\n\n\n\n The problem that needs to be solved – validated<\/li>\n\n\n\n Your value propositon concept (how you\u2019re going to solve the problem) – assumption, not necessarily validated yet\n<\/li>\n<\/ol>\n\n\n\nHomework Part 2: An ode to feasibility <\/h2>\n\n\n\n The other most common thing applicants are disqualified over is they dream too big with no credible path to get there. <\/p>\n\n\n\n
Yes, you must have a grand vision. But if you can\u2019t show credible and realistic steps to get there, you\u2019re not visionary, you\u2019re delusional.<\/p>\n\n\n\n
Have an ambitious long term vision, but be extremely realistic in what you want to achieve using 50k EUR in 18 months.\n<\/p>\n\n\n\n
This means, more often than not, your best course is to DECREASE THE SCOPE drastically!!! <\/p>\n\n\n\n
Also, when in doubt, go back to the PAIN POINT, and think about different ways to solve it. The best way to do it is to deeply understand what the customers are trying to achieve. <\/p>\n\n\n\n
Two examples:<\/strong><\/p>\n\n\n\n\nThe problem is low lifespan of spacecraft due to running out of fuel. Two completely different way to solve it: in-orbit refueling OR designing better systems to make the same amount of fuel last longer.<\/li>\n\n\n\n Instead of building your own hardware, develop a software solution that levereges existing capabilities. Or vice versa. <\/li>\n<\/ul>\n\n\n\nSometimes you can build a completely marketable solution in the allotted time and budget (e.g. when your product is a SaaS application), but when it\u2019s a more R&D intensive endeavour, the time and budget will only allow you to take a small step towards your ultimate goal.<\/p>\n\n\n\n
Best practice is, determine what your riskiest technical assumption is, and find a way to de-risk it. In an ideal scenario, your time in ESA BIC de-risks both the business side and the technical side enough to become investment-ready.<\/p>\n\n\n\n
So how to be a visionary instead of delusional? Let\u2019s see some examples.\n<\/p>\n\n\n\n
Delusional<\/strong>: Build a vertically integrated launch service to compete with SpaceXRealistic 1<\/em>: Build a proof of concept of a new design for a small launch vehicle propulsion system that has a realistic chance of outperforming the existing competition in one particular niche.Realistic 2:<\/em> Build a software platform where smallsat operators can book rideshare missions on small launchers. (Uber for satellites.)<\/p>\n\n\n\nDelusional<\/strong>: New constellation to monitor forests Realistic 1<\/em>: SaaS solution that leverages existing satellite imagery for forest monitoring Realistic 2<\/em>: Prototype of a new design of a Lidar sensor that could be used for more effective forest monitoring<\/p>\n\n\n\n <\/p>\n\n\n\n
Good examples of a realistic, reduced scope<\/strong>:<\/p>\n\n\n\n\nDigital 3D model, 3D printed prototype<\/li>\n\n\n\n Computational engineering design, simulation (no physical hardware)<\/li>\n\n\n\n Breadboard prototype<\/li>\n\n\n\n Testing your payload on a stratospheric balloon (as opposed to LEO)<\/li>\n\n\n\n Software with drastically decreased functionality. One key function, nothing else. Think Tinder\u2019s first version (swiping) or Snapchat (disappearing photos).<\/li>\n\n\n\n Software with only one key customer persona in mind (solving the problem for forestry, but not for agriculture or mining. Solving the problem for Earth Observation cubesats in LEO only, not larger satellites in MEO or GEO)<\/li>\n\n\n\n In case of a novel algorithm, a Jupyter Notebook demo or visualisation<\/li>\n\n\n\n Flipping the script and solving the problem in a completely different way (e.g. software instead of hardware)<\/li>\n<\/ul>\n\n\n\n\nAfter you\u2019ve validated the problem and the customers, and confirmed that your goal is realistic, you need to decide what exactly you\u2019re going to apply with. <\/p>\n\n\n\n
The best practice is pick one not too big initial target market, and one particular problem, and aim to solve it. <\/p>\n\n\n\n
Common mistakes<\/strong>:<\/p>\n\n\n\n\ntoo many value propositions masquerading as one (a.k.a swiss army knife approach or the \u201csuper app syndrome\u201d)<\/li>\n\n\n\n the consulting business masquerading as a startup<\/li>\n\n\n\n too complicated (if you can\u2019t explain it to your grandma in 5 sentences, the TEB is probably going to throw it out, saying that you don\u2019t understand it yourself)<\/li>\n\n\n\n full of jargon (extra minus points if it\u2019s non-space jargon)<\/li>\n\n\n\n idea or initial market too big, with no credible roadmap to get there (I\u2019m building the next SpaceX.)<\/li>\n\n\n\n nonexistent market <\/li>\n\n\n\n targeting too many markets at the same time<\/li>\n<\/ul>\n\n\n\nThe goal you want to achieve with ESA BIC doesn\u2019t have to (and shouldn\u2019t) be your ultimate vision, but an important milestone in getting there. If you are building something truly extraordinary, you will need several rounds of venture capital funding (each round to reach another milestone). <\/p>\n\n\n\n
So what is a minimum viable milestone? (typically, successfully tests\/validates one or very few core assumptions. Preferably your riskiest assumption.)<\/p>\n\n\n\n
Now is the time to do some extra research: what do you need to reach that milestone? How much money? Partners? Human resources?<\/p>\n\n\n\n
If you need too much money, your best bet is to reduce the scope further. <\/p>\n\n\n\n
Evaluate very honestly the current skills that you have on your team, and what gaps there are. It\u2019s fine if there are gaps, but have a plan to fill them. The evaluators are seasoned professionals and WILL see the gaps, and they are giving you minus points if you fail to identify them.<\/p>\n\n\n\n
Do you need a hardware manufacturer? Contact them. Now. Ask for an estimate. \nYou need to buy commercial-off-the-shelf equipment? Software licenses? Do your research, how much is it?\n\nHow are you going to handle software development, if any? \nDo you want to outsource software development? Contact us \ud83d\ude42 \nBut in all seriousness, evaluate different options (the founders doing it themselves, hire freelancers, hire a software development agency, vibe-code it? There is no wrong answer here, but you have to have an answer.)<\/p>\n\n\n\n
Be mindful though, some ESA BICs allow some portion of the funding to go to salaries (founders and employees), however in some of them any sort of human resource cost is not eligible. In that case, you will have to outsource. Check your particular ESA BIC for guidance. <\/p>\n\n\n\n
General tips before diving in<\/h2>\n\n\n\n Before you start filling out your application, I’d like to give you two tips that can multiply your chances of a successful application.<\/p>\n\n\n\n
Get in touch with your local BIC beforehand<\/strong>Don’t leave it to the last minute<\/strong>The step by step guide to filling out your ESA BIC Business Plan<\/h1>\n\n\n\n Now that you\u2019ve done your homework, you have an existing painful problem to solve, and a realistic approach to get to your first milestone, now is the time to download the application documents and start filling them out. It might seem daunting at first, but bear with me. <\/p>\n\n\n\n
The application documents themselves are an amazing resource full of guidance, instructions, tips and tricks. ESA wants you to succeed. <\/p>\n\n\n\n
So I\u2019m not going to repeat the content of the documents, so the following guide is to be interpreted TOGETHER with the application documents. (I\u2019m only going to repeat points that I find critically important, and if I have nothing to add to the blue text, I\u2019ll skip that section entirely)<\/p>\n\n\n\n
Before you start getting overwhelmed by the sheer number of documents, don\u2019t panic. Most of the docs are for reading only. DO NOT start filling out the Incubation Contract Template (you can safely ignore it entirely for now, cross that bridge when you get to it, as in, accepted). <\/p>\n\n\n\n
There are two important documents to fill out, the Business Plan and the Incubation Proposal. <\/p>\n\n\n\n
Also, important to note that each BIC has a slightly different template for these documents,<\/p>\n\n\n\n
That said, let\u2019s dive in.<\/p>\n\n\n
\n
The Executive Summary<\/h2>\n\n\n\n Probably the most important section of your application. The goal is not to cram all the information into it, but to give an overview to the reader, and make them want to learn more. <\/p>\n\n\n\n
The first impression can decide the mindset the TEB member reviewing your application will have during the next 30-60 minutes while they are reading the rest. If they don\u2019t like it, or don\u2019t understand it, it will be hard to change their minds. (it\u2019s not their fault, this is how the human brain works)<\/p>\n\n\n\n
As mentioned before, ESA BIC applications are like pitching an investor. Even though there is no set structure, I recommend the following (that has an eerie resemblance to a good pitch deck structure).<\/p>\n\n\n\n
\nProblem statement (using some storytelling elements incorporating how the problem is affecting the customer is a big plus)<\/li>\n\n\n\n Elaborate on who the customer actually is (optional)<\/li>\n\n\n\n Solution (and how it helps the customer, how it solves the problem)<\/li>\n\n\n\n Optional: Why now? (if timing is relevant, or it hasn\u2019t been possible until recently due to some breakthrough. )<\/li>\n\n\n\n Competitive advantage<\/li>\n\n\n\n Business model (how are you going to eventually make money?)<\/li>\n\n\n\n Short term goals, long term vision<\/li>\n\n\n\n Where we are now (if you have any result, got revenue, got LOIs, received investment, got into another accelerator before, say so)<\/li>\n<\/ul>\n\n\n\nBest practices:<\/strong><\/p>\n\n\n\n\nVery clear, simple language. <\/li>\n\n\n\n Go through the executive summary several times. This is the section where every word that doesn\u2019t add value, in fact, subtracts value. Scrutinise each word.<\/li>\n\n\n\n Use layman terms if possible. If you use use space-related acronyms, do so after explaining them once. E.g. Low Earth Orbit (LEO). Don\u2019t assume every reader is a space professional.<\/li>\n\n\n\n ONLY the essentials. You can (and will have to) elaborate everything later. This is also not the place for geeking out, no overwhelming technical detail.<\/li>\n\n\n\n Have a friend or family member (who is not in the space sector) read the executive summary. If they can explain the basics of your value proposition back to you, you\u2019re golden. <\/li>\n<\/ul>\n\n\n\nAnd the blue text writing tips in the application document lists a lot of things to put in the summary. My advice, be selective. All of the information will be put in excrutiating detail later in the document anyway. Only include information if it shows something extraordinary or unusual.<\/p>\n\n\n\n
\nThe space connection: only elaborate here if it\u2019s not obvious. Hint: If the word satellite or spacecraft is in your executive summary at least once, it\u2019s obvious. <\/li>\n\n\n\n Founding team\u2019s skills: only elaborate on this if the founders have some relevant or extraordinary achievements or credentials. E.g. got a PhD at Oxford, worked at a space company, or won a NASA competition. Otherwise just one sentence is enough (e.g. \u201dFounding team includes aerospace engineers, mechanical engineers and physicists\u201d)<\/li>\n\n\n\n IP and patents: only if you already have something, or you are licensing a patent from somewhere. Otherwise omit here. <\/li>\n<\/ul>\n\n\n\nShort and long term vision.<\/strong><\/p>\n\n\n\nThis is the part where you elaborate it. Extremely important, and tends to get overlooked. <\/p>\n\n\n\n
(Beachhead strategy, target a narrow niche whose problem you can solve \u2192 but have a big market in mind)<\/p>\n\n\n\n
Let\u2019s see a fictional example. Elon Musk applies to ESA BIC in 2002. (in our timeline, ESA BIC started in 2004)<\/p>\n\n\n
\n
<\/p>\n\n\n\n
Business Opportunity and Space Connection<\/strong> <\/em>The space industry in 2002 is constrained by exorbitant launch costs (often exceeding $100 million per mission) making interplanetary exploration, like missions to Mars, financially unfeasible for private entities and limiting Europe’s role in global space advancement. As a newly founded startup, SpaceX aims to disrupt this by developing low-cost, reliable rockets through innovative design and vertical integration, with a space connection to ESA’s emerging navigation systems (e.g., early Galileo concepts) for enhanced guidance accuracy. Our solution is a small orbital launcher, the Falcon 1, using breakthrough simplifications in propulsion and avionics to slash costs by 50-70%. This leverages evolving needs for affordable access amid post-Shuttle era shifts and new EU space policies promoting commercialization. Developments include conceptual blueprints inspired by Russian engine tech, adapted for Western standards.<\/em><\/p>\n\n\n\nThe 50k EUR funding from ESA BIC would enable us to validate one core assumption: that our low-cost liquid propellant engine design can achieve stable combustion in advanced simulations, proving viability for affordable launches without exotic materials.<\/em><\/p>\n\n\n\nTarget Market<\/strong> <\/em>We target the growing small satellite market, estimated at $1 billion globally by 2005, including European telecom and Earth observation firms under ESA’s ARTES program. Priority is U.S. and EU government contracts for rideshares, where demand is rising with initiatives like NASA’s Commercial Orbital Transportation Services (COTS).<\/em><\/p>\n\n\n\nCompetitive Advantages<\/strong> <\/em>Unlike established players like Arianespace’s expensive Ariane 5 or Russia’s Proton (with geopolitical risks), SpaceX’s in-house manufacturing will avoid supply chain dependencies, enabling 30% faster development and lower prices. No direct competitors exist for a private, low-cost small launcher, differentiating us via agility and Mars-focused vision.<\/em><\/p>\n\n\n\nBusiness Model<\/strong> <\/em>Revenue from launch contracts ($10-20M per future mission) and payload integration fees. Potential partnerships with ESA for technology exchange (e.g., avionics) and universities for R&D. Offer organized as end-to-end launch services, starting with simulations for clients, delivered via secure digital platforms and future ground facilities. Priority market: Europe for collaborative missions, aligning with EU space autonomy goals.<\/em><\/p>\n\n\n\nVision<\/strong> <\/em>Short-term goals (next 18 months): Validate key assumptions through computational simulations to de-risk the venture, and raise follow-on funding. Using the 50k EUR for proof-of-concept: developing and running detailed engine combustion and trajectory simulations (e.g., using CFD software for kerosene-LOX flow stability and orbital mechanics modeling), costing ~\u20ac30k for software licenses\/computational resources and \u20ac20k for expert consulting\/analysis. <\/em><\/p>\n\n\n\nLong-term: Launch Falcon 1 by 2004, evolve to reusable systems by 2017, and enable Mars missions by 2030, with international growth via ESA ties for 20% European market share. Scalability through modular designs for larger rockets.<\/em><\/p>\n\n\n\nIntellectual Property Protection<\/strong><\/em>Engine designs and guidance algorithms are trade secrets, with patents planned for filing via USPTO and EPO post-simulation validation; ownership by SpaceX.<\/em><\/p>\n\n\n\nFounding Team Skills<\/strong> <\/em>Founder Elon Musk, fresh from selling PayPal, brings entrepreneurial acumen, physics knowledge, and vision for space colonization. Early team includes propulsion experts from aerospace firms, providing engineering and project management to prototype and commercializ<\/em>e.<\/p>\n\n\n\nTeam and company setup<\/h2>\n\n\n\n It’s a common misconception that ESA expects full time, well-rounded founding teams to apply. Sure, it helps. But it’s not a requirement. If you are alone, or the in-house team only covers part of the necessary areas of expertise, don’t panic.
If you don\u2019t know the concrete person, say so. (E.g. \u2018we are in need of a mechanical engineer who we are going to hire as soon as possible\u201d Every minor skill gap you don\u2019t have a plan to fill, is a minus point. <\/p>\n\n\n\n
If you don\u2019t know the concrete people, but you have a strong network in an area, say so.<\/p>\n\n\n\n
E.g. We have great relationships with university professors at [University] that we can turn to for advice on [topic].<\/p>\n\n\n\n
Advisory board members are worth their weight in gold. If you have mentors who are willing to help you, list them. If you have found a manufacturing partner or outsourcing provider, list them. (We at Astro42 are generally more than happy to be listed on ESA BIC applications as the software development partner.)<\/p>\n\n\n\n
If the university lets you use their lab for free, say it here. If your uncle has a spacious garage you can use as a workshop\/lab for free, say so. These things shows you can leverage your network and hustle. <\/p>\n\n\n\n
A note to single founders<\/strong>Co-founder relationships are one of the most crucial factors in a startup’s success. A bad co-founder relationship can doom your venture.
As mentioned above, if you’d like to have co-founders eventually, look for contractors, freelancers and consultants. You can even hire an employee or two (check the local BIC’s rules, sometimes you are not allowed to spend money on payroll)
If you are a single non-technical founder, you can still be very well-positioned to get into ESA BIC if:<\/p>\n\n\n\n
\nyou have done your homework and your value proposition is strong and validated<\/li>\n\n\n\n you are covering all the areas of expertise necessary with external people or companies<\/li>\n\n\n\n your plans are realistic.<\/li>\n<\/ul>\n\n\n\nWill you get maximum points on this category? Well, probably not. But you’re guaranteed to not get disqualified if you follow the three points above.
Value Proposition<\/h2>\n\n\n\n This should be quite straighforward after you\u2019ve done your homework.<\/p>\n\n\n\n
What TEB members really want to see here<\/strong><\/p>\n\n\n\n\nClarity above all else: who you serve, what job you do for them, how you do it better than their current alternative, and proof someone wants it.<\/li>\n\n\n\n A measurable outcome: time, money, risk, or compliance improved by a concrete amount.<\/li>\n\n\n\n Primary evidence: named pilots\/LOIs, paid trials, or letters with numbers in them (volume, price, timeframe).<\/li>\n<\/ul>\n\n\n\nHere\u2019s one tight template you could use:<\/strong><\/p>\n\n\n\n\nCustomer + job<\/li>\n<\/ol>\n\n\n\n
![\"\"](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/image-2-1024x876.png\")
<\/figure>\n\n\n\n![\"Jeff](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/image-1.gif\")
<\/figure>\n<\/div>\n\n\n![\"The](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/image-1.webp\")
<\/figure>\n<\/div>\n\n\n![\"\"](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/the-dark-knight-action.gif\")
<\/figure>\n<\/div>\n\n\n![\"Elon](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/elon-musk-smoke-1.gif\")
<\/figure>\n<\/div>\n\n\n![\"Fictional](\"https:\/\/astro42.com\/resources\/wp-content\/uploads\/2025\/09\/image-3-1024x870.png\")