The startup bloom in aerospace sector
These last days, after my visit week to Madrid attending two conferences (and getting sick for it…) I have been sending different proposals.
In one of the proposals I mentioned EO (earth observation) sector as a ‘niche’ which I’m in love to, but maybe too small to be treated as a sector, blabla, bla.
I realized that: a) I’m wrong (once again), b) EO is not that small anymore. Not if we include it inside the whole aerospace sector.
Things have changed; here are some facts, join me in this non comprehensive list and tell me your thoughts if you want to share them with me, let’s go!
Aerospace Startups: a new coming
In the last issue of El Referente, as I was reviewing VC funds and startup activity I found the local effect of what Timoney’s mentioned a year ago as ‘the satellite pixel glut’:
“With Serious Money flooding the Earth Observation sector–Billionaire money, Former Treasury Secretary/ Wall Street money, etc.–the industry is SPAC’d up and hurling satellites and sensors (optical, radar, hyperspectral, you name it) into orbit at a dizzying rate.” (Source: mapbrief.com / B. Timoney’s blogsite)
This, has come to Spanish entrepreneurial ecosystem. And, as opposite to the sceptic approach of Timoney (our geospatial Taleb as a matter of fact), I believe this bloom has more pros than cons, at least for the geospatial sector (let’s not think about spatial debris or hyped expectations; both can be managed if there is will to do it)
From ElReferente’s publication of last year’s most promising startups and operating vc funds, I found several companies funded in Spain (early stage, seed) that purely are in aerospace/EO segment. That, is a lot being a typical niche that was the realm of big gov’ agencies not so long ago.
Let’s mention some companies from this ecosystem, either they feature or not in this report:
Earthpulse!
“Complex data, made easy” Earthpulse! analyzes satellite images through AI data engine to help companies streamline decision-making processes.
Fregata Space
Based in Barcelona and Lisbon, they focus on water and air quality monitoring from satellite imagery.
“With the help of satellite images and in situ sensors, you can get complete information on air and water quality at your fingertips, anytime, anywhere.” (Source: https://fregataspace.com/)
Hydra Space
Hydra Space works on IoT related to woldwide connectivity through satellites.
Kreios Space
“Kreios Space is developing an electric propulsion system for satellites. This technology is called ABEP (Air-Breathing Electric Propulsion) and it allows satellites to orbit closer to Earth without fuel usage.” (Source: https://www.kreiosspace.com/)
Ynsat
They combine edtech and aerospatial to make satellite data available to everyone, with their product called mapiblocks (I’m really curious about that one!)
It is indeed an innovation the use of satellite data worlwide to boost STEM education. Personally, I really wanted to start watching products like this one!
PLD Space
“We develop reusable rockets to provide commercial orbital and suborbital access to small satellites in a faster, safer and more viable way.” (Source: PLD Space website)
This Spanish aerospatial company, which manufactures the Miura rockets, is vc-backed by JME Ventures, same fund that is funding companies like jobandtalent, Ironhack (tech bootcamps) or Muroexe (shoemakers).
***OK, putting Space in the name is not definitely something prone to differentiation between these startups, but otherwise, who cares!
-Also, to mention a representative case from the international, US scene I want to refer to Albedo, also mentioned in another post I published weeks ago.
Albedo
“Albedo, the latest space company to join the well-known Y Combinator startup accelerator, plans to establish a satellite constellation offering Earth imagery with a resolution of 10 centimeters per pixel.” (Source: Space News)
Albedo announced this last September a $48 million A round.
Is it possible that we’ll see soon a specific fund or portfolio dedicated to this sector? Are any examples of geospatial portfolios in any VC overseas?
I would launch an answer, with all my humble spirit, let’s say. In my experience when I was in meetings with different private equity funds I could realize that the agnostic approach in terms of activity or industry works pretty well in investment. One single fund was investing in satellite imagery company for optimization in fisheries (hey, one more!), intellectual property digitalization and automatic language translation, among other different company activities. That’s not only diverse, and practical, that’s beautiful I would say. You can never get bored if you are working in funds like these.
One cool insight I got when I was in charge of Intelfin project is that companies can be perfectly be treated as peers in terms of investment as long as they have similar metrics, even though they can be operating in radically different sectors.
Pre-seed/seed otherwise has often the verticality factor -i.e., edtech incubators or datatech/AI funds-
That means, in other words, that we finally can have a healthy ecosystem of aerospatial emerging companies internationally without expecting pure players in private investment like we largely are seeing in biotech or education.
Lift off!