Field of View (FOV) - September 2024

Approach Venture was formed to enable founding teams building the future of frontier technology to achieve their full potential. Today, Approach supports frontier technology companies ranging from stealth to publicly-traded, strategics with technology scouting and venture capitalists with startup due diligence.

Connect with Approach to discuss how our team might be able to support your desired growth plans.

Emerging Trends

As access to space increases and launch costs decrease, space companies are entering the market with missions and product roadmaps catered towards their visions of the ideal buildout of in-space infrastructure. Below contains this month’s emerging trends to keep an eye on as the space economy evolves.

NASA Mission Delays and Cancellations Could Change Their Role in Space.

In the last two years, NASA has experienced several major mission cancellations and delays. The OSAM-1 (On-Orbit Servicing, Assembly, and Manufacturing) mission, initially aimed at demonstrating satellite refueling and in-orbit assembly, was recently canceled due to excessive cost overruns and schedule delays, with its budget ballooning from $626 million to over $2 billion​. The Mars Sample Return (MSR) mission is also under review for potential redesigns and budget adjustments after its cost estimates reached up to $11 billion, and NASA has already slowed down its development​. The Artemis 2 and Artemis 3 missions, pivotal for NASA's human lunar exploration program, have been delayed by nearly a year each due to technical issues with the Orion spacecraft and integration challenges with partner systems. Artemis 2, now scheduled for September 2025, and Artemis 3, targeted for September 2026, have faced setbacks due to problems with the heat shield and life support systems​. Additionally, the Boeing Starliner program was an absolute disaster and SpaceX now has to save the day (and their astronauts).

Instead of serving as the tip of the spear in the space industry as NASA has done over the last 60+ years, NASA’s future budget uncertainty and recent track record has proven new space is outpacing them. The organization’s inability to attract and retain talent has also struggled over the years. The U.S. may struggle to meet its ambitious human space exploration goals if it implements recommendations from a recent National Academies report. Approach and our venture partners have also recognized a sharp decline in portfolio companies pursuing NASA solicitations over the last 1.5 years.

Satellite Supply & Demand.

The number of startups announcing plans to sell satellites continues to increase. In addition to companies who were formed from the beginning to manufacture low-cost, rapidly produced spacecraft, other startups whose original business models have not resulted in meaningful revenue generation are also moving into bus sales. Some of which have achieved flight heritage while others will near term either on their own (private capital) dollar via SpaceX rideshare mission or thanks to commercial customers who needed a spacecraft and quickly to launch a demonstration mission to test their own respective payload. Will the supply of satellites soon exceed demand? Below are known knowns:

• US government will not (or rarely) purchase satellites as they prefer to purchase services

  • This leaves commercial buyers as the only end customer to each satellite being produced

• Most major satellite constellation operators are producing their own spacecraft

  • The accounts for the bulk of satellites operating in LEO today and for years to come

• Recent STRATFI awards have slingshot startups who also haven’t had difficulty fundraising like Apex, K2 Space and Portal Space Systems well ahead of their competition in the immediate term

Terrestrial Technologies Transition to Space Applications.

Terrestrial technologies are increasingly being adapted for space applications to enhance satellite communication, security, data management, and overall space infrastructure. Similarly, advancements in optical and laser communication, initially developed for terrestrial networks, are being tested in space to enable faster data transmission and secure links between satellites, providing a higher throughput than traditional radio frequencies.

The need for ground systems to handle the rising volume of data from LEO constellations has pushed the industry to develop software-defined networks, flexible architectures, and cloud integration. These adaptations are crucial as ground systems evolve to keep up with the demands of space-based 5G, deep-space exploration, and growing satellite constellations. Approach has recognized an uptick in inbounds from companies who have active terrestrial-focused commercial and government contracts looking to transition their technology to space applications in LEO and beyond.

Connect with Approach to discuss Emerging Trends resulting from our industry insights.

Lower Your Orbit. Raise Your Expectations.

Headquartered in El Segundo, Viridian Space’s Air-Scooping Electric Thruster (ASET) technology enables a refuellable satellite platform that flies at Very Low Earth Orbit (VLEO) and transforms the upper atmosphere into an infinite source of propellant. Viridian’s leadership team previously led Aerospace Corporation’s Electric Propulsion Laboratory.

This technology will truly revolutionize satellite lifecycles and capabilities. VLEO satellites will ensure better satellite Broadband Communications, and superior Earth Observation, and also greatly enhance the burgeoning In-orbit Servicing, Assembly, and Manufacturing (ISAM) industry. ASET technology is a giant leap forward, to a more sustainable and safer space ecosystem.

Potential investors, Connect with Approach for a warm introduction to the founders who are in the midst of an active fundraise.

Stealth Spotlight 🔦

Led by a team of industry veterans in autonomous systems and defense, Stealth Company has active USG contracts to advance their patented, new way to fuel the future of aerial endurance.

Potential investors, Connect with Approach to meet the team who is in the midst of an active fundraise.

Juno Propulsion is changing the game with next-generation rocket propulsion based on innovations in rotating detonation combustion technology. The future is bright in space, with Juno’s novel in-space propulsion solutions paving the way for significant improvements in asset lifespan, time-to-target, and payload capacity. Juno’s bipropellant liquid rocket engine technology realizes a 5-10% increase in specific impulse beyond current state of the art, enabling green, high impulse propulsion in-space. Their thrusters have reduced weight, volumetric form factor, and power requirements compared to today’s hydrazine-based solutions. Juno was recently awarded grants through the National Science Foundation, the state of Washington, and a contract with NASA. Juno is working to make satellite propulsion greener, cheaper, and more reliable to enable your boundary-pushing space missions. 

Juno is currently seeking applicants for their Summer 2025 Internship Program - the application window closes on October 30 with final decisions taking place before year end.

Connect with [email protected] to learn how Juno can power your next space mission.

Regulatory Rundown

Our rapid-growth space economy is gaining more visibility across the globe. Regulatory Rundown covers select space policies, evolving legislation updates, licensing requirements and top stories involving regulatory bodies.

FAA Slows SpaceX (and Industry) Progress.

The FAA has delayed SpaceX’s Starship launch due to safety and environmental concerns, as reported by FAA Administrator Mike Whitaker during a recent congressional hearing. The delay stems from the need for additional sonic boom analysis and potential violations of the Clean Water Act after the previous Starship test launch resulted in debris dispersal and fuel release. SpaceX views these issues as minor and unrelated to safety, arguing the delays hinder U.S. space leadership.

This launch is crucial because it involves testing new landing techniques for Starship and many space startup’s business models rely on the Starship business case closing. The tension between SpaceX and the FAA highlights differing priorities on risk management and innovation. Whitaker emphasized that the FAA’s focus is ensuring public safety, even as SpaceX aims for rapid testing to advance Starship for deep-space missions. The outcome of these regulatory hurdles could shape the future pace of U.S. commercial space launches and influence international competitiveness in space exploration. SpaceX claims the FAA’s slow pace is holding back U.S. space leadership and is taking its case to Capitol Hill to address these concerns.

Force Multiplier

A commonly referenced term within the DoD, a force multiplier is a tool, strategy or person that, when added to or employed by a team, significantly increases mission success and team potential. Each month, you’ll find select force multipliers enabling space companies to level up as they look to scale.

Radian Aerospace Performs Taxi Tests of Spaceplane in Abu Dhabi.

Radian Aerospace has begun flight tests of its PFV01 prototype spaceplane at an airport in Abu Dhabi, performing initial taxi tests and short flights. The PFV01 is intended to validate aerodynamic performance and handling characteristics for the larger Radian One spaceplane, which would use rocket engines for orbital missions and horizontal takeoff using a rail sled system.

Radian’s spaceplane is designed to carry up to five people and cargo to low Earth orbit. Radian aims to conduct further tests at another site to expand its capabilities.

Approach Venture Opens Recruiting Vertical.

Led by a 10+ year Aerospace & Defense recruiter of industry engineers and executives, Approach Venture is expanding services to include recruiting for A&D startups seeking white glove support in identification, hiring and onboarding of Tier I talent.

To connect with our recruiting vertical lead and set up an intake call, email [email protected]. Approach is also accepting resumes from industry talent seeking new roles.

Anduril Unveils Space Business Line Followed by ~$25mm USSF Contract.

Anduril Industries announced a $25.3 million contract from the U.S. Space Force to modernize the Space Surveillance Network (SSN). This project will involve upgrading data integration and communication systems using Anduril’s Lattice software platform, which leverages AI to analyze and integrate data from various sensors.

The contract also includes the deployment of Anduril’s SDANet, a modern mesh network that utilizes commercial internet services like SpaceX’s Starlink. This initiative is part of Anduril's new space-focused vertical aimed at enhancing space domain awareness.

SDA Awards Six Companies for Commercial Disposal Services.

The Space Development Agency (SDA) awarded contracts for feasibility studies under the Systems, Technologies, and Emerging Capabilities (STEC) broad agency announcement (BAA). The selected companies will conduct 90-day studies to support space vehicle de-orbit services for the PWSA, with final reports expected by the end of 2024. Despite having current disposal plans, the SDA is exploring commercial alternatives for assisted disposal services for their low-Earth orbit deployments. Awarded companies include:

• Arkisys

• Impulse Space

• Quantum Space

• Sierra Space

• SpaceWorks Enterprises

• Starfish Space

SpaceX Polaris Dawn Mission was a Success.

The Polaris Dawn mission, led by Jared Isaacman, concluded with a successful splashdown, marking the end of a historic mission that included the first-ever private spacewalk. This mission is critical to human spaceflight because it tested new SpaceX extravehicular activity (EVA) suits and other technologies that will be vital for future deep-space missions.

The crew also reached the highest altitude of any Earth-orbiting spacecraft since NASA’s Apollo mission, contributing valuable data on human health in space. This progress is foundational for long-term human exploration of the moon and Mars. 36 experiments from 31 partner institutions from across the world came together to produce one of the most robust and diverse science and research portfolios ever slated for a spaceflight mission.

The Starlink Movement.

Several free SpaceX Starlink service announcements have recently taken place including carriers like Air France, Hawaiian Airlines, United Airlines, and Air New Zealand. Air France plans to equip its entire fleet with Starlink's high-speed internet, offering free Wi-Fi to all passengers starting in 2025​. There are ~6,111 active Starlink satellites on-orbit, making up nearly 50% of all active satellites in space.

United Airlines has signed the largest agreement of its kind, intending to install Starlink on more than 1,000 aircraft, providing free, gate-to-gate internet access by the end of 2025. Additionally, Air New Zealand has started trialing Starlink on select domestic flights and may expand it across its fleet depending on the results. SpaceX is also proposing to invest $1.5 billion in Vietnam tied to its Starlink satellite service in the near future.

Proteus Space Announces $1.8mm Phase II STTR Alongside UC Davis.

Proteus Space is launching an AI-designed ESPA-class satellite in 2025, which will carry payloads from the University of California, Davis, and a government research organization. The design process is driven by the company’s "Mercury" software, which uses generative design to optimize satellite configurations rapidly.

The project is funded by Proteus Space’s internal resources along with recent Small Business Innovation Research (SBIR) contracts. This approach aims to reduce the time and complexity of custom satellite development for various missions.

D-Orbit Announces $168mm Series C Led by Marubeni.

D-Orbit raised 150 million euros in a Series C round led by Japan’s Marubeni Corp to expand its space-based cloud computing, in-orbit servicing, and orbital transportation capabilities. The investment will support D-Orbit's development of new vehicles for satellite life extension and space debris recycling, aiding in a “circular space economy.”

Earlier this year, D-Orbit established a joint venture in the U.S. to manufacture small satellites. This funding positions the company to strengthen its global presence and service offerings.

CisLunar to Provide PPUs for Atomos’ OTV.

Atomos Space has selected CisLunar Industries to provide Power Processing Units (PPUs) for its Quark orbital transfer vehicle, aimed at improving power efficiency and performance during satellite maneuvering. The PPUs will support a variety of space operations, including docking, relocation, and refueling.

This partnership is expected to enhance Atomos Space’s capabilities for satellite servicing in low Earth orbit and deep-space missions. It also marks a significant step for CisLunar Industries in delivering power solutions for advanced space transportation systems.

Lynk Global Reorganizes C Suite Ahead of IPO.

Lynk has announced an executive realignment to support its next phase of growth, naming Dan Dooley as CEO and appointing Dr. John M. Olson as President of Strategic Development. Dooley, who previously served as Chief Commercial Officer, brings extensive experience from Sprint and has been instrumental in building Lynk's global partnerships.

Olson, a retired U.S. Air Force General, will focus on government sector development and strategic initiatives. Co-founder Charles Miller transitions to Chairman, guiding Lynk as it scales its technology and prepares for an IPO.

Matthew Gann and Steve Hobart Depart Terran Post Lockheed Txn Announcement.

Terran’s former SVP of Strategy & BD and Senior VP of Engineering announced new roles at Sierra Space and Virgin Galactic, respectively. Matt is now Sierra’s Senior Director of Capture & Proposal Management while Stephen is Virgin’s SVP of Spaceline Programs & Engineering.

Approach anticipates additional Terran leadership to depart as the acquisition closes by A&D Prime, Lockheed Martin, near term.

New Glenn is Making Strides Under David Limp’s Leadership.

Blue Origin successfully test-fired the upper stage of its New Glenn rocket at the Cape, marking a key milestone towards its first launch. This test involved firing two BE-3U engines for 15 seconds to validate system integration and operations.

Originally intended to launch NASA’s ESCAPADE Mars mission in October, delays prompted NASA to move the mission to 2025. Blue Origin now plans to use the upcoming NG-1 launch to test technology for its Blue Ring orbital transfer vehicle as early as November of this year.

Tracked Opportunities

Approach Venture is tracking many active federal solicitations for funding aerospace and defense capabilities. Below is an illustrative list of opportunities on our radar that you should also be tracking.

• The USSF Specific Topic SBIR/STTR 24.3/C solicitation is active with a proposal deadline of Oct 16. Topics include rendezvous proximity operations and docking, sustainable space maneuvering, responsive rideshares and in-space transportation, ASAT detection, exoatmospheric containerized cargo transportation, dynamic space operations, space domain awareness and more

  • These solicitations span Phase I and Direct to Phase II opportunities

• The USAF/USSF AFX24.7/E Open Topic Phase I solicitation is active with a proposal deadline of October 10

• The Program Year 2025 (PY25.1) Department of the Air Force (DAF) STRATFI Notice of Opportunity capability package submission deadline was delayed to October 2

• NASA released an RFP under their Next Space Technologies for Exploration Partnerships (NextSTEP-2) Appendix R for Lunar Logistics and Mobility Studies. These studies seek industry-led concept definition and maturation studies to address lunar surface logistics and uncrewed surface mobility capabilities.

• See Tracked Opportunities Covered in Last Month’s FOV newsletter

To identify and receive proposal support for opportunities tied to advancing your respective roadmap, Connect with Approach.

Founder Tip

Three years ago, now Generational Partners VC (Asher Kraut) interviewed Anduril’s founder (Palmer Luckey) before Anduril began an acquisition spree, moved into the space industry and disrupted the Prime ecosystem. Great interview and an early look at the type of founder mindset needed to become a dominant player in the defense industry.

Did You Know?

Onboarding overseas investors to your Capitalization Table could prevent your company from participating in direct US government opportunities or serving as a subcontractor. See more on Foreign Ownership, Control, or Influence (FOCI).

FOCI happens when a foreign entity has the power to direct or influence the management or operations of a company. This can lead to unauthorized access to sensitive information and potentially compromise national security. FOCI can involve legal means like joint ventures and acquisitions or illegal methods like cyber espionage.

Before allowing an investor to join your Capitalization Table, be sure to conduct due diligence around their LP base.