Field of View (FOV) - April 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 and investors looking to participate in their growth potential.

Connect with Approach to discuss how our team might be able to support your Company’s growth.

This month’s Field of View is presented by CBRE.

CBRE is the world's leading commercial real estate services firm, offering unparalleled expertise in crafting strategic solutions for businesses real estate needs.

With over 50 years of combined experience, our team specializes in supporting the unique needs of early-stage, high-growth tech and aerospace/defense companies throughout the Greater LA and South Bay regions.

Whether it's finding the perfect space to optimize your operations or crafting a real estate strategy, we deliver solutions that drive efficiency and cost savings. Our focus is on understanding your specific goals and challenges, then developing data-driven real estate strategies that help propel your business forward.

Connect with us below for any questions regarding real estate:

• John Lane: [email protected]

• Richard Melbye: [email protected]

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 National Space Technology Development Priorities.

NASA recently announced a new approach to identifying, tracking, and prioritizing space exploration technology gaps through their Technology Shortfall list. This effort, spearheaded by NASA STMD, has aggregated a list of 187 technology shortfalls across 20 capability areas which will ultimately be used to direct resources to the most critical space technology development needs.

This process is intended to facilitate communications between Program Offices and technology developers to ensure more relevant and impactful technology innovations are being matured and fielded. The current Shortfall list spans across additive manufacturing, cryogenic fluid management, in-situ resource utilization, and more. NASA is seeking industry feedback on the list through May 13.

Rising Pricing of Aluminum.

Aluminum prices rose noticeably in April, a trend that could impact the aerospace supply chain as aluminum is a key raw material in satellite and autonomous systems BOMs. The recent closure of Missouri’s Magnitude 7 aluminum plant may have contributed to the market volatility, which saw the price of aluminum climb by roughly 10% in the first three weeks of the month.

Strategic Acquisitions of RF Hardware Providers.

Norway-based COMROD Communications AS announced it acquired a majority share of Triad RF Systems of East Brunswick, New Jersey on April 22nd. Triad’s long-range radio frequency and microwave amplifiers are integrated in autonomous systems as well as satellite programs, and the acquisition will strengthen COMROD’s position in the US market.

A similar acquisition of an aerospace-focused RF hardware provider took place in August 2023, when Colorado’s Frontgrade Technologies purchased Carlsbad, California-based Aethercomm. Aethercomm manufactures high-power RF amplifier modules and switches, including SSPAs flying missions in LEO, GEO and MEO.

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

Stealth Spotlight 🔦

Stealth Company is using electromagnetics to drive a captured rod between a launcher and a client for a delta-V momentum exchange, giving a client a "push" (think debris, cargo, re-entry, space station waste, spacecraft, and refueler use cases). A network of launchers could theoretically provide near infinite delta-V to clients by moving them between launchers as steppingstones for RAAN, LTAN, phase changes, orbital raises (or de-orbits), LEO to GEO to Cislunar and back.

Potential investors, Connect with Approach to learn more and meet the founder.

Space Sector Trading Comps

Brought to you by one of the space industry’s leading investment banking teams located in New York City, Deutsche Bank.

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.

Aeronautics (the first “A” in NASA).

For the first time, the Federal Aviation Administration has granted a commercial aircraft company a special flight authorization (SFA) to conduct supersonic testing over land. Colorado-based Boom Technology, Inc. carried out a successful first flight of its XB-1 “Baby Boom” subscale demonstrator aircraft on March 22nd from Mojave Air and Space Port, during which the Boom team achieved an altitude of 7,120 feet and speeds up to 238 knots. The SFA, which Boom received from the FAA on April 16th, provides Boom with the necessary regulatory approval to proceed with their flight test campaign. Further test events will occur in the R-2508 Complex and will incrementally push XB-1 beyond the sound barrier, potentially reaching an expected top speed of Mach 2.2.

Another team focused on developing high speed intra-atmospheric flight technology is NASA’s Quesst (Quiet SuperSonic Transport) mission, for which Lockheed Martin’s Advanced Development Programs (commonly referred to as Skunk Works) designed and built the X-59 “low boom” experimental aircraft. The X-59 aims to reduce the acoustic signature of supersonic flights over populated areas using a unique configuration featuring a thin, tapered nose designed to dissipate shockwaves. Lockheed Martin rolled out the X-59 in January 2024 and flight testing is expected to commence later this year. If data gathered during NASA’s Quesst mission proves that sonic booms can be made quieter, the FAA may consider loosening regulations on supersonic flight, which could open up new markets and enable the flying public to take advantage of travel opportunities not seen since the Concorde retired in 2003.

Also on the horizon is Atlanta-based Hermeus, a team focused on the ultimate goal of building a passenger aircraft called Halcyon that will be capable of hypersonic (Mach 5+) speeds on trans-oceanic routes. Hermeus completed assembly of their first flight vehicle, the uncrewed Quarterhorse Mk 1, in late March 2024 after a design and build sprint of just 204 calendar days. Quarterhorse Mk 1 follows on the successful ground test campaign of their “dynamic iron bird” Quarterhorse Mk 0 vehicle, which demonstrated remote command and control during taxi tests in Q4 2023.

As new capabilities in flight science materialize and more competitors push the supersonic envelope, the regulatory environment will need to contemplate bold new frontiers in order to keep pace, as well as to ensure further innovation is incentivized. This could eventually include developing standards for certifying hypersonic commercial aircraft.

AST: Re-Entry Licensing Before Launch and Possible Reorganization.

On April 17th, the FAA’s Office of Commercial Space Transportation (AST) published a notice stating that approval to launch a spacecraft that is designed to re-enter the atmosphere will not longer be granted without a re-entry license already in hand. The shift in policy addresses the recent eight-month span between the launch of Varda Space Industries’ W-1 in-space manufacturing mission and their eventual receipt of the requisite re-entry license. Our February 2024 FOV newsletter recapped Varda’s successful re-entry and landing sequence in the in the Utah Test and Training Range (UTTR); relatedly, the El Segundo, California-based company announced the completion of a $90 million Series B on April 5th.

A longstanding argument to move the above-mentioned FAA’s AST outside the current organization and into a new position directly under the Secretary of Transportation resurfaced at an April 23rd meeting of the FAA’s official advisory body for commercial space transportation issues. The Commercial Space Transportation Advisory Committee (COMSTAC) group unanimously recommended making the AST independent of the FAA, which would elevate the AST to receive the proper attention and resources from a cabinet-level position to address the rapidly expanding space industry. The move would effectively restore the Office of Commercial Space Transportation to an earlier hierarchy under the Secretary of Transportation, where it existed from its establishment in 1984 until 1995.

This month’s Field of View is presented by Silkline.

Silkline is a supplier-agnostic supply chain and procurement system that eliminates the need to send POs, receive acknowledgments and track open order updates “the old fashioned way” using spreadsheets.

With integrations for ION Factory OS and many other enterprise platforms, Silkline is the missing link between your internal tech stack and your suppliers.

Helping schedule-driven hardware teams operate seamlessly, avoid misses and move faster, Silkline is deployed in AWS GovCloud for maximum security and compliant handling of export-controlled data.

To schedule a Silkline demo, visit silkline.ai or connect with CEO Isaac Chambers: [email protected]

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.

Type One <> UKBAA Launch ‘Venture into Space’ Accelerator.

Backed by the UK Space Agency, Type One Ventures and UKBAA (UK Business Angels Association) teamed up to create a 12-month accelerator program developed to up-skill high-potential SMEs developing innovative space technologies to prepare them for venture funding rounds. More information here on the 10 companies down-selected to participate.

Shoebox Lunar Rover Collaboration.

Lunar-focused Astrobotic and Canadian space software company Mission Control announced a partnership at Space Symposium to collaborate on Astrobotic’s CubeRover which will be a payload launched with their Griffin-1 lander set to go to the moon as part of NASA’s VIPER mission.

VICTUS HAZE: Public LaunchCo <> CO Startup.

In 2023, US Space Force partnered with Firefly Aerospace as a launch provider and Millennium Space Systems (a Boeing Company) as the spacecraft provider on a mission called VICTUS NOX to launch a satellite to orbit in <24 hours. The Victus Nox satellite was built and tested in less than a year and then launched within 27 hours of command.

This year’s mission, VICTUS HAZE focuses on exercising a realistic threat response to counter on-orbit aggression. Publicly traded launch provider Rocket Lab (Nasdaq: RKLB) and Colorado start-up True Anomaly were down-selected by US Space Force to carry out its new exercise. First, a spacecraft built and launched by Rocket Lab will chase down another satellite made by True Anomaly called Jackal. If this initial mission goes well, the Company’s will switch roles between chaser and target.

SES to Acquire Intelsat for $3.1 Billion.

In an all-cash txn, SES plans to acquire Intelsat for $3.1 Billion. The combination is said to create a stronger multi-orbit operator with greater coverage, improved resiliency and expanded suite of solutions.

This txn brings together two of the largest satellite operators for a combined company with around $4 Billion in revenue: >100 satellites in GEO and 26 satellites in MEO. 

“Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments, combined with value-added, efficient, and reliable offerings for Fixed Data and Media customers. This combination is also positive for our supply chain partners and the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem.” - Adel Al-Saleh, CEO of SES

Tracked Opportunities

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

• Air Force Open Topic SBIR CSO X24.6 Direct to Phase II (D2P2) solicitation was released with proposals due May 23, 2024. The Open Topic is a 21-month contract to mature existing defense-critical technologies.

• AFRL’s Rocket Cargo Vanguard Program pre-released three separate Direct to Phase II solicitations this month tied to re-entry, Mentioned within Emerging Trends of last month’s FOV, Space Acquisition (and other branches) are allocating significant capital to re-entry / point-to-point cargo delivery

  • ROC STAR, DEMISE and ICED-T focus on rocket upper stage for re-entry, standardized containers for on-orbit survival + payload deployment + re-entry and re-entry vehicles independent of rocket

• The National Reconnaissance Office (NRO) is accepting BAA proposals through May 31 through the Acquisition Research Center (ARC)

  • Areas of Interest: Apertures, Communications, Remote Sensing, Satellite System Design, Sense-Making and more

• DoD SBIR 2024.2 and DoD STTR 24.B specific topics were released and span a range of defense SBIR/STTR Phase I and Phase II technology areas. Technologies include advanced materials and manufacturing, missile defense, rocket cargo, counter-UAS, and more.

• NASA’s C.26 Rapid Mission Design Studies for Mars Sample Return RFP was released to fund studies to evaluate alternative approaches to executing the MSR mission.

• Space Systems Command (SSC) announced an RFP for their Evolved Strategic Satellite Communications (ESS) Space Vehicle (SV) Development and Production contract. This ~$8 billion procurement will supplement and eventually replace the Advanced Extremely High Frequency (AEHF) satellite constellation providing strategic satellite communications.

• 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

Build Smartly and Remain Focused.

Be sure your product roadmap (and ultimate Company vision) does not deviate just to point to early revenue generation to potential investors. Far too often, founders will accept requests and submit proposals for technologies and variants of their existing roadmap that do not tie to the Company’s core competencies and its overall direction. In fact, taking on too much may result in less confidence from a potential investor for founders to execute on their business plan and cause engineering team members to work in multiple directions, diluting their efforts across programs.

Did You Know?

In order for any qualified company to submit for an AFWERX / SpaceWERX Open Topic Direct to Phase II solicitation, they are required to have three DAF (Department of the Air Force) signatures on a form called a Customer Memorandum which outlines what they plan to propose / defense need they will support in order to submit a proposed solution?

This includes a Customer, End User and Technical Point of Contact (or TPOC) signatures. We hope this barrier to entry does not prevent innovative, US-based founders from advancing state-of-the-art to support our warfighters.

See more on the AFWERX website here.