Russia’s Soyuz 5 rocket has been a decade in the making, and now, it’s finally nearing its maiden flight. As an entrepreneur with a background in education and deeptech, I understand the significance of milestones like this, especially when you’re investing years of effort into a project. But the real question with any innovation is simple: Who’s going to care enough to use it?
Let’s break it down.
What Is Soyuz 5, and Why Does It Matter?
The Soyuz 5 is a medium-lift launch vehicle designed to fill a gap between Russia’s existing Soyuz 2 and Angara rockets. It promises to lift up to 20 tons to low Earth orbit, which places it right in the competitive zone for commercial satellite launches. Unlike its predecessor Zenit-2, which relied heavily on Ukrainian-made parts, Soyuz 5 is entirely Russian, a design choice driven by geopolitical shifts, including Russia’s strained relationship with Ukraine.
Roscosmos plans to use it for government satellites and, in the future, for heavy-lift missions tied to lunar exploration. While the technical specs of Soyuz 5 seem impressive, they’re overshadowed by bigger issues: global competition and market demand.
The Market Challenge
The space industry is notoriously crowded. With SpaceX’s Falcon 9 dominating launches thanks to its reusability and pricing, competitors like Soyuz 5 face steep odds of gaining traction internationally. Europe’s Ariane rockets, along with rising competitors from China and India, are strong players in this space too.
On top of that, the demand for geostationary satellite launches, a market Russia dominated with its Proton rocket, has nosedived. Many Western companies now avoid Russian launches altogether, given political tensions. This leaves Soyuz 5 reliant on domestic demand and a few allied states, significantly limiting its potential.
Lessons for Entrepreneurs
As a founder of a deeptech startup myself, I’ve been in situations where external factors shift your market landscape. There’s a lot to learn from Roscosmos’ journey for those of us looking to build and scale:
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Pay Attention to Market Needs: Just as Soyuz 5 might struggle with demand, your product should address a clear gap or need. The biggest mistake startups make is building a solution for a problem that doesn’t exist, or exists but isn’t urgent.
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Adapt Quickly: The rocket was created partly to replace Zenit after geopolitical complications. If the market shifts for your business, adapt. My startup CADChain, for example, pivoted our technology direction when industry regulations changed.
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Know Your Competition: Pricing and user experience often decide market share, not just features. SpaceX thrives because it made satellite launches cheaper. As you build your business, ask yourself what your version of “cheaper launches” could be.
How to Think Like Roscosmos, Without Repeating Its Mistakes
When launching your product (or rocket), here are some actionable steps:
- Conduct a Demand Analysis: Before investing heavily in development, ensure there’s a viable market. Survey your potential customers to validate your assumptions.
- Prioritize Longevity Over Innovation: Roscosmos focused on making the Soyuz 5 reliable, not flashy, with good reason. For startups, reliability often matters more than shiny features.
- Build Relationships: Long-term partnerships can sustain your business even if broader market demand isn’t booming. Aim for loyalty over volume.
Common Startup Mistakes, Reflected in Soyuz 5
Roscosmos teaches us valuable lessons with its shortcomings, even if they weren’t intentional:
- Overlooking Market Dynamics: Despite its strong technical foundation, Soyuz 5 lacks a clear differentiation point to dethrone competitors like Falcon 9. This reflects a broader startup error, misjudging competitive dynamics.
- Political Risks: Soyuz 5’s reliance on domestic and allied-state demand highlights the risks of limited markets. If your product depends too much on one niche, a single shift in that sector could derail your plans.
- Late Launch: Timing matters. After nearly a decade, a fast-moving industry might view Soyuz 5 as a “late-to-market” player. Similarly, delays in product development or launch can harm startups.
Deep Insights for European Entrepreneurs
For women in Europe looking to grow their ventures in competitive industries, Soyuz 5 offers an unusual roadmap. Innovation alone isn’t enough, you need strategic thinking. Space startups, or any kind of venture, require understanding customer behavior and building resilience against unexpected events.
How can you build resilience? Network smartly. Roscosmos’ heavy reliance on domestic markets could teach us the value of diversifying our partnerships, especially when scaling your business internationally. For my business ventures, this has meant reaching out not just to Dutch companies but to partners all across Europe and beyond.
Conclusion
Soyuz 5 may have the technical capability to succeed, but whether anyone wants to fly with it is a different story altogether. The same question applies to any startup, you need customers who are ready and willing to engage with your product.
For entrepreneurs, the biggest takeaway here is this: Don’t just focus on building something extraordinary. Make sure what you’re building is needed. As you craft your product or service, consider how geopolitical, economic, and competitive landscapes could shape your real audience. That’s how you move from launching something to watching it soar.
FAQ
1. What is the Soyuz 5 rocket, and why is it significant?
The Soyuz 5 rocket, also known as Irtysh, is Russia's new medium-lift launch vehicle designed to transport up to 20 tons to low Earth orbit. Developed as a successor to the Zenit-2 rocket, it is entirely Russian-made, reducing reliance on foreign components. It aims to provide a competitive option for satellite launches, though its future in the global market remains uncertain. Read more about the Soyuz 5 rocket
2. What prompted the development of the Soyuz 5 rocket?
The Soyuz 5 was developed in response to geopolitical tensions and the need to reduce reliance on Ukrainian-made components used in earlier rockets such as the Zenit-2. It also aims to fill a gap in Russia’s current rocket lineup between the smaller Soyuz-2 and the larger Angara A5. Explore Soyuz-5's geopolitical motivation
3. How competitive is the Soyuz 5 in the global space launch market?
The Soyuz 5 faces intense competition from SpaceX’s lower-cost Falcon 9, reusable rockets, as well as emerging space programs from China and India. Russia's access to Western commercial markets is also limited due to geopolitical issues, which poses challenges to its global competitiveness. Learn more about the market challenges of Soyuz 5
4. When is the Soyuz 5 expected to have its maiden flight?
The Soyuz 5 rocket is scheduled for its maiden flight in late 2025, launching from the Baikonur Cosmodrome in Kazakhstan. This marks nearly a decade after its development began. Check out the expected launch timeline here
5. What are some key features of the Soyuz 5’s design?
The rocket employs hot-staging techniques and features an RD-171MV engine in its first stage, which is one of the world’s most powerful liquid-fueled engines. Soyuz 5 has been designed for efficiency and reliability rather than flashy advancements. Learn about Soyuz-5's technical details
6. How does the Soyuz 5 compare to its competitors?
While technologically competent, the Soyuz 5 is not reusable, which puts it at a disadvantage compared to reusable models like SpaceX's Falcon 9. Additionally, it lacks a clear cost advantage to make it competitive in the commercial market. Discover how Soyuz 5 stacks up against competitors
7. What challenges does the Soyuz 5 face in securing a strong market position?
The rocket faces reduced global demand for geostationary satellite launches, limited international partnerships due to Russia's geopolitical challenges, and tough global competition. It is expected to rely strongly on domestic and allied state demand. Learn more about the economic challenges facing Soyuz 5
8. What can entrepreneurs learn from Roscosmos’ journey with Soyuz 5?
The development of Soyuz 5 highlights key entrepreneurial lessons, such as the importance of market validation, quick adaptation to external challenges, understanding competition, and prioritizing reliability and long-term strategy over short-term gains. Explore lessons for entrepreneurs from Russia's Soyuz 5 project
9. How has Russia’s geopolitical stance affected the Soyuz 5’s potential?
Russia’s strained relations with Ukraine and subsequent focus on domestic production have driven the development of Soyuz 5. However, international sanctions and dwindling Western market access have severely limited its commercial prospects. Learn about Russia's geopolitical influence on Soyuz 5
10. Will the Soyuz 5 succeed in the long term?
The Soyuz 5 may find limited success in serving Russian and allied nations' markets but is unlikely to make significant gains in the competitive international space industry dominated by reusable rockets from companies like SpaceX. Its long-term viability is uncertain. Learn about Soyuz 5's prospects
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
