Field of View (FOV) - August 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 Company’s growth.

This month’s Field of View is presented by Propel Space.

Propel Space is unlocking new mission sets with their novel, miniaturized thruster gimbal.

Boasting a small form factor with a volume of 1/3U, a range of motion of + 20 degrees across 2-axis and being able to support EP and chemical propulsion systems up to 5 kg, Propel’s TG-Mini is creating a paradigm shift in propellant usage efficiency and CONOPs flexibility for small satellites. Small form factor, low-cost and truncated lead times are the three pillars of Propel Space. 

In terms of product roadmap timing, engineering models will be available later this year and flight units ready for order starting 2025. Propel’s gimbal roadmap has been driven by customer inputs across propulsion and spacecraft producers from day one to save mass, money and time for your satellite missions.

Contact [email protected] for more detail.

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.

Reliable and Resilient PNT.

The potential to disable GPS (Global Positioning System) poses a significant threat, not only to everyday life but also to military operations during conflicts. This vulnerability was highlighted in 2021 when Russia successfully conducted an anti-satellite (ASAT) test. Depending on results of the upcoming US presidential election this year and if tensions with China continue to escalate, the US can expect our GPS / GNSS (Global Navigation Satellite Systems) will be a primary target. PNT (Positioning, Navigation, and Timing) encompasses three essential capabilities:

• Positioning involves accurately determining location and orientation in two or three dimensions using a standardized geodetic system

• Navigation is the process of identifying one's position—relative or absolute—and making necessary adjustments to reach a desired destination on land, sea, air, or in space

• Timing ensures precise synchronization with a global time standard, tailored to specific needs

Approach has recognized an uptick in interest among Prime and DoD decision-makers in advancing PNT technologies, as well as inbounds from startups producing PNT solutions. Key innovations like lower SWaP (Size, Weight, and Power), ultra-precise optical clocks and advanced sensors are essential for maintaining accessibility and interoperability in GPS-denied environments. PNT technologies can either complement GPS with greater precision or serve as a replacement in case of an outage.

Limited TPOC Availability.

Approach has received an influx of inbounds from startup founders who are finding tremendous difficulty in identification and securing of DAF (Department of the Air Force) champions able to serve as signatories for their SBIR/STTR pursuits spanning from Phase II and beyond. For said solicitations, a technical point of contact (TPOC) is required whose role is to closely monitor a startup’s progress and achievement of key milestones / objectives throughout their period of performance. Of the three required signatories for an Open Topic Phase II (Customer, End User and TPOC), a TPOC’s time commitment exceeds the other two by a long shot.

An increase in total number of space startups securing SBIR/STTR contracts in support of advancement of their product roadmaps has resulted in limited availability of TPOCs to sign Customer Memorandums (a requirement to even submit a proposal for Open Topic Direct to Phase II solicitations). Despite the increase in contract awards to startups and active contracts currently being supported by a limited number of TPOCs within AFRL, SSC, TacRS (Tactically Responsive Space), etc., the TPOC pool has been held constant. Startup founders have already begun to see a less hands-on approach from their TPOCs during periods of performance.

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

Stealth Spotlight 🔦

Stealth Company is producing scalable bioreactors designed for microgravity in support of in-space manufacturing use cases to improve life on Earth and making settling in space possible.

Potential investors, Connect with Approach to meet the founding team who is the midst of their initial raise.

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

Antaris builds Software for Space™.

Antaris simplifies and automates the design, simulation, and operation of satellite constellations and space missions. The Company’s platform enables Full Mission Virtualization™ for new satellite and constellation designs, existing on-orbit vehicles and the entire mission ground segment. Their cloud platform facilitates seamless collaboration across teams, vendors and geographies. Antaris’ platform helps reduce time-to-orbit by 2x and truncates constellation lifetime costs by up to 10x. 

The Company’s investor base includes Lockheed Martin Ventures, HCVC, E2MC, Acequia Capital and Possible Ventures.

Interested customers, partners and investors, Contact Antaris directly to learn more.

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.

SpaceX Falcon 9 Cleared for Launch After Three Day FAA Grounding.

The Federal Aviation Administration (FAA) grounded SpaceX's Falcon 9 rocket on August 28 following a landing failure where the first-stage booster tipped over and exploded during an attempted landing on the droneship "A Shortfall of Gravitas" after successfully launching 21 Starlink satellites. The FAA conducted an investigation to ensure there were no systemic issues and quickly cleared Falcon 9 for flight, allowing SpaceX to proceed with planned launches. The very next day, SpaceX launched two separate Starlink missions which successfully deployed 42 satellites and stuck both booster landings.

This quick return to operations highlights SpaceX's effective recovery processes and the FAA's confidence in their safety measures. Potential pressure resulting from the fact that the strong majority of the US space industry’s success (and ability to generate revenue) rides on SpaceX’s ability to launch may have also contributed. Commercial missions are back on track and the next highly anticipated crewed mission (Polaris Dawn) has an anticipated launch window opening on September 4 with a backup launch date of the next day.

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.

SpaceX Reveals Raptor 3.

SpaceX shared details on their new Raptor 3 engine, slated to replace the Raptor 2 on current launch vehicles. The new engine reportedly relies on 30% fewer components, unlocking faster production cycles and lowered costs. SpaceX makes the announcement as they await regulatory approval for Starship Flight 5. Despite Tory Bruno (ULA’s CEO) believing the pictured engine was partially assembled, “It works pretty good.”

AstroForge Raises $40mm Series A.

The asteroid mining startup raised $40mm in Series A funding led by Nova Threshold. AstroForge’s third mission will feature its 200 kg vehicle, Vestri, designed to return to the Near-Earth Asteroid and dock with the body on-orbit. The Vestri spacecraft will be developed in-house and launch on Intuitive Machines’ third mission in 2025.

Led by Nova Threshold with participation from 776, Initialized, Caladan, YC, Uncorrelated Ventures and Jed McCaleb (Founded and Funded VAST).

Verizon Teams with Skylo for Direct-to-Device Messaging.

Verizon (NYSE: VZ) has partnered with Skylo to introduce a new commercial direct-to-device messaging service for its customers. Starting this fall, users with specific smartphones will have access to emergency messaging and location sharing, even when they are out of reach of traditional cellular networks. Additionally, Verizon plans to expand this service next year, allowing customers with select devices to send text messages via satellite, ensuring connectivity regardless of location.

This marks Verizon’s second venture into satellite direct-to-device technology, following its strategic partnership with AST SpaceMobile (NASDAQ: ASTS) in May, which involved a $100 million investment.

Jason Kim Onboarded as Firefly Aerospace’s CEO.

Firefly announced Jason Kim will take the helm on October 1, leading their team of >700 employees developing rockets, lunar landers and on-orbit servicing vehicles. Jason brings decades of experience in leadership roles within the space industry, including most recently serving as CEO of Millennium Space Systems where he worked closely with Firefly during the US Space Force VICTUS NOX mission.

Starpath Robotics Raises $12mm Seed.

Rocket propellant company, Starpath Robotics, announced a $12mm Seed to support the advancement of their commercial scale propellant production factories for the surface of the Moon and Mars.

Co-led by 8VC and Fusion Fund, with participation from Day One Ventures, Balerion Space, and Indicator Ventures.

Nine STRATFI Awardees.

Program Year 2024.2 Strategic Funding Increase (STRATFI) selections are now public. Approach anticipates the recent STRATFI selections to be followed by some noteworthy fundraise announcements from the below startups between September-October timeframe:

• American Lithium Energy, Advanced Nano Si/C Prismatic Cell 

• Apex Space, Satellites for Low Earth Orbit and Geostationary Equatorial Orbit Dynamic Space Operations 

• Impulse Space, Inc., Tactically Responsive High Energy Kick Stage 

• Inversion Space Company, Arc: In-Space and Re-Entry Vehicle 

• K2 Space, Mega Class Satellite Bus 

• Outpost Technologies, Joint Precision Orbital Carryall 

• Portal Space Systems, Scaled Supernova Spacecraft 

• Turion Space, Multi-Payload SDA Satellites and Real Time C2 

• Wildstar, LLC, Next Generation Narrowband Antennas

Sierra Space in Talks to Purchase ULA.

Boeing and Lockheed Martin are in talks with Sierra Space to sell their launch JV, United Launch Alliance (ULA). The potential acquisition follows 2023 interest from Blue Origin, Rocket Lab and PE firm Cerberus.

Estimated at a valuation of $2-3 billion, an acquisition of ULA would add launch as a capability to Sierra Space who has plans to go public soon. Spun out of Sierra Nevada Corporation (SNC) in 2021, Sierra Space was valued at $5.3 billion in their most recent funding round.

Apex Unveils Aries GEO Variant ($13.5mm Price Tag).

Satellite manufacturing startup, Apex, announced an Aries bus variant capable of operating in GEO driven by demand signals from dual-use customers. This comes as no surprise given LEO is crowded, GEO transportation is a market gap and the Company recently announced a $95 million Series B raise in June (led by XYZ Venture Capital and CRV) resulting in the ability to pursue additional orbital regimes.

Apex also announced the sale of their first GEO Aries to a government customer with mid-2026 delivery and launch by the end of the same year. An even larger bus called Nova (500 kg) is listed on the Apex website.

Perceptive Space Raises $2.8 million Pre-Seed.

Headquartered in Toronto, Perceptive announced a $2.8 million Pre-Seed to advance their space weather platform with Uses of Funds focused on scaling their ML space weather platform and hiring to commercialize their products. The Company has developed AI models to run onboard satellite edge processors.

Round participants included Panache Ventures, Metaplanet, 7Percent Ventures, Mythos Ventures and AIN Ventures.

Lt General (USSF RET) John Shaw Expands Advisory / BOD Duties.

Since transitioning to civilian life from USSF, John Shaw has announced taking on several Advisor / Board of Director roles for space companies like Sierra Space, Auria Space and Stoke Space. The most recent Company John will be an Advisor for is ThinkOrbital. He and Lee Rosen, ThinkOrbital’s CEO as of January of this year (was Chief Strategy Officer from January 2022), worked together in uniform.

Redwire to Acquire Hera Systems.

Redwire (NYSE: RDW) announced a definitive agreement to acquire national security-focused spacecraft developer Hera Systems, a move that will expand its portfolio with additional spacecraft options, including satellites designed for GEO.

As result of the acquisition, Redwire has increased its revenue outlook for 2024 by $10 million, bringing the total forecasted revenue to $310 million, reflecting Hera’s anticipated contribution to this year’s sales.

Firefly Aerospace Signs Multi-Launch Agreement with L3Harris.

Firefly signed a 5-year agreement with L3Harris for up to 20 launches with their Alpha rocket, including two to four missions per year from 2027 to 2031. The new agreement is in addition to Firefly’s existing multi-launch agreement with L3Harris for three Alpha missions in 2026.

Interstellar Technologies Raises $21 million Series E.

The Japan-based startup announced the close of their Series E raise, aiming to further develop their rocket technology and break into the satellite communications market. This comes after Japan’s Ministry of Internal Affairs and Communications called upon Interstellar to support the development of a Japan-based Starlink equivalent.

Round participants included SBI Group, Docomo, Seibu Shinkin Capital and Seibu Shinkin Bank.

Muon Space Raises ~$57 million Series B.

Headquartered in Mountain View, Muon raised a $56.7 million Series B round to support accelerating the development of their Halo LEO satellite platform. On the same day, Muon also announced securing >$100 million in 2024 active backlog for Halo LEO satellites. A major highlight is a Sierra Nevada Corporation (SNC) deal for the development and delivery of three next-gen satellites in support of their Vindlér commercial RF remote sensing system. The first Muon satellite block is slated for launch in 2025.

Led by Activate Capital, round participants included Acme Capital, Costanoa Ventures, Radical Ventures and Congruent Ventures.

Umbra Unveils Mission Solutions Business Line.

The synthetic aperture radar (SAR) imagery provider has launched a new business line dedicated to delivering fully operational satellite missions for customers seeking their own orbital SAR capabilities. Umbra’s new offering, known as Mission Solutions, leverages the Company's vertical integration and remote sensing expertise to create customized satellite solutions.

Umbra enables governments and large multinational corporations to acquire their own satellites, including individual components like the bus, payload, and antenna, as well as entire constellations equipped with Umbra’s formation flying technology. Additionally, they offer ground and flight software, along with tailored and advanced mission capabilities to meet specific customer needs.

Stoke Space Software Supporting ispace Lunar Lander Development.

ispace-US selects Stoke Space’s Fusion Manufacturing Execution System (MES) for inventory management to accelerate Mission 3 development. This decision is expected to result in agile development within ispace’s Development and Flight Hardware Manufacturing campaigns, leading to better hardware traceability and assembly/test operations.

Booz Allen Hamilton Deploys Artificial Intelligence in Space.

Booz Allen (NYSE: BAH) announced the successful deployment and operation of a generative AI large language model (LLM) in space using Hewlett Packard Enterprise’s (HPE) Spaceborne Computer-2 onboard the International Space Station (ISS) National Lab. This LLM is believed to be the first one deployed in space and one day aims to help enable astronauts to use generative AI without depending on Earth-bound internet in the power and communications constrained environment of space.

Dan Jablonsky Steps into Ursa Major’s CEO seat.

Effective August 5, Ursa Major appointed Dan Jablonsky as their new CEO. Jablonsky, who previously served as the CEO of Maxar Technologies and led them through a successful take-private by Advent International, succeeds Ursa Major's founder, Joe Laurienti, who led the company for the past nine years. Overall, this leadership change is a strategic move that could significantly impact Ursa Major's trajectory and its role in the broader space industry.

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.

• USSF Specific Topic SBIR/STTR 24.3/C was pre-released on August 21, with calls for capabilities spanning 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

• USAF/USSF AFX24.7/E Open Topic Phase I solicitation was announced with a release date planned for September 11 and a proposal deadline of October 10

• A new schedule for USAF/USSF Direct to Phase II (D2P2) Open Topic 25.4 and 25.6 solicitations was released a few weeks ago which will be delayed until Q1 and Q2 2025 (see revised schedule below)

• USAF Specific Topic SBIR/STTR 24.4/D is planned to be pre-released September 4 with proposals due November 6

• Program Year 2025 (PY25.1) Department of the Air Force (DAF) STRATFI Notice of Opportunity is OPEN

  • STRATFI is an AFVentures program to help bridge the “Valley of Death” between SBIR/STTR Phase II and Phase III

• 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

Discussions with VCs Should be Two-Way.

Similar to standard due diligence questions VCs may ask founders during introductory calls, it is wise for founders to have questions ready to ask VCs as well. Here are several to consider that may help in determining fit on your Cap Table:

• Do you have capital to deploy today?

  • First question to ask

• If yes, which Fund is your team deploying out of today?

  • Can you explain what a typical check size looks like for teams of our profile (funding stage, desired round total, business size, stage of development, pre or recognized revenue, etc.)?

• What is your lead preference?

• When was your most recent investment?

• How many portfolio companies do you have today and how do you support them outside of providing capital?

• How does your investment process work in terms of steps and timing?

• What is the investment thesis of your current Fund (or next if not deploying capital today)?

• Who comprises your LP base and which countries are they from?

Did You Know?

All startups who completed AFWERX/SpaceWERX SBIR/STTR Phase I contracts in August are now in a holding pattern to submit for Phase II follow-ons until February 2025; this means that if a startup’s Phase II follow-on is awarded, they must wait 7 months following Phase I completion to kick off their Phase II.

Justification communicated to startup founders was to, “improve topic cadence for SBIR/STTR companies with a schedule that is less impacted by the timing of other solicitations and major holidays during the period of performance.”

This 6-7 month shift to the right will impact many startup founder’s runway and revenue projections previously communicated to existing and new potential investors.

See our Emerging Trend above on Limited TPOC Availability which may have been a contributing factor.