Field of View (FOV) - July 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 Raven Space Systems.

Raven Space is Modernizing Composite Manufacturing.

The Company is building Microwave Assisted Deposition (MAD), a breakthrough thermoset composite 3D printing innovation for lightweight structures and thermal protection for A&D applications.

Raven’s rapid large-scale 3D print capabilities will alleviate critical supply chain bottlenecks for high-temperature applications including solid rocket motors and hypersonics. Relatedly, the Company seeks to unlock the next generation of optimally designed aircraft and spacecraft structures with materials as strong as aerospace-grade aluminum at half the density.

Potential Investors, Raven Space is in the midst of a fundraise – Connect with Approach for a warm introduction to the founding team.

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.

Startups Prime While Primes Sub.

Although this strategy is not entirely new to industry, Approach is recognizing an uptick in Primes and larger organizations serving as subcontractors to A&D startups within their proposals in response to DAF solicitations (not just providing Letters of Support). The US government has implemented initiatives, created new groups and has sought funding of new teams and technologies to diversify their supplier base away from Primes only. What began as a trend in autonomous systems has become just as relevant in the space ecosystem as well.

From a proposal reviewer’s perspective, having Prime support and inclusion in any given proposal submitted by a startup is attractive for a number of reasons: startups ability to leverage decades of engineering success / experience, a backstop to DoD funding, access to state-of-the-art facilities / equipment the startup may not have in-house, general oversight throughout the period of performance (outside of TPOCs who are slammed today in terms of commitments) and more; said benefits are the same for a startup themselves.

From a Prime’s perspective, this enables their organization to have a front row seat as any given startup of strategic interest advances technologies with near term or down range applications for a program of record; this also acts as a springboard for CVCs to dig into said startup with the required WholeCo engineering interest box now checked. Additionally, we’ve noticed startups teaming with Primes has helped traditional VCs become more comfortable during due diligence as the path to exit is most often strategic acquisition as opposed to initial public offerings for A&D startups. Relatedly but less frequent, several A&D-focused PE firms are also receptive to providing Letters of Intent to invest in a startup alongside their proposal submissions if a larger pursuit is Selected. This is also reviewed favorably by proposal reviewers.

Addressing Operational Bottlenecks in Space Vehicle Processing.

With the exponential growth of space launch activities, the DoD faces a significant challenge: rapidly processing payloads and space vehicles to meet mission demands. Launch processing encompasses a range of final pre-flight preparation activities, including inspection, testing, payload integration, propellant loading, and payload fairing encapsulation. These tasks are typically performed on-site in environmentally controlled locations and have been historically completed by a few select private companies, leading to bottlenecks as launch frequency increases.

One notable example highlighting launch processing and scheduling constraints is the USSF-44 mission. This multi-manifest mission was set to launch in 2022 at Cape Canaveral. One space vehicle, LDPE (now ROOSTER), was at an Astrotech integration facility when another space vehicle on the launch manifest was delayed. The delay forced LDPE to sit at Astrotech for one year, incurring costs in the millions, and occupying a precious processing facility while waiting for the delayed multi-manifest space vehicle.

Another challenge with launch processing is that the Space Force does not have exclusive rights to processing facilities at Cape Canaveral or Vandenberg. Companies like Astrotech operate commercially and are not required to share detailed schedules or connect stakeholders to resolve scheduling conflicts. As a result, high-priority Space Force missions can be delayed for several months to a year due to processing constraints.

Multiple companies have already received US Space Force contracts to advance novel space vehicle processing capabilities, specifically to support dedicated processing facilities for use in tactically responsive space missions or for urgent processing of national security space payloads. SSC's Assured Access to Space (AATS) has turned to the industry with a new solicitation for National Security Space Launch Space Vehicle Processing to mitigate these issues further and expand the supply base. This initiative, which recently extended its due date to September 30, 2024, aims to explore innovative solutions to streamline processing and reduce bottlenecks.

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

Stealth Spotlight 🔦

Headquartered in Northern California, Stealth Company is on a mission to increase the lifetime of satellites by 70% by producing a grid-less ion propulsion system. Stealth Company’s grid-less ion prop system is aiming to be twice as efficient as current Hall Effect Thrusters (HETs) and electrostatic engines with increased specific impulse.

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

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

Headquartered in Huntsville, Rubicon Space is the ASCENT-based propulsion arm of Plasma Processes: an AS9100D certified supplier of advanced materials solutions to commercial and government customers in Aerospace & Defense.

Led by NASA’s former Lunar Flashlight Propulsion System PM, Rubicon is a manufacturer of both thrusters and propulsion systems that use the advanced spacecraft energetic non-toxic (ASCENT) propellant formerly known as AF-M315E. Rubicon has active commercial and government contracts across their product suite ranging from 0.1-110N of thrust with the ability to operate in LEO and beyond.

Connect with Approach for a warm introduction to the team producing next generation in-space propulsion.

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 reportedly held discussions in July with US and Australian officials to assess the feasibility of landing a Starship vehicle in the ocean off Australia’s coast and then recovering it on Australian soil. Doing so would necessitate the relaxation of certain export controls, but given the spirit of cooperation between Australia and the US on defense technologies under the AUKUS security partnership, the plan seems not only logical but likely to find regulatory approval.

SpaceX isn’t the first space company to explore using alternate landing sites in Australia. As we discussed in our October 2023 FOV newsletter, El Segundo, CA-based in-space manufacturing startup Varda Space Industries has partnered with Australian spaceport operator Southern Launch to recover their capsules at South Australia’s Koonibba Test Range (KTR), a move that could enable faster and more frequent recoveries given that the KTR has fewer parties competing for the range’s resources than the Utah Test and Training Range (UTTR).

In a memo dated July 9th, US Air Force Assistant Secretary for Space Acquisition and Integration Frank Calvelli expanded the acquisition oversight scope of the Space Force Space Systems Integration Office to include programs within the Space Development Agency (SDA) and the Space Rapid Capabilities Office in addition to those of Space Systems Command (SSC). Merging oversight of development programs across different Space Force acquisition organizations into one office would help to ensure that end-to-end capabilities not only come online faster, but also that future space architectures are designed to operate as a broader integrated system instead of individual stovepipes.

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.

Star Catcher Emerges From Stealth.

Star Catcher’s CEO, Andrew Rush, announced their emergence from stealth along with a $12.5 million Seed round this month. Star Catcher is creating a power grid on-orbit by beaming solar energy to customer spacecraft as a pay-as-you-go service. Andrew stated in recent interview that an initial ground-based demonstration with a sub-scale version of its power nodes in orbit is scheduled for December 2025.

Sierra Space Partnerships in Japan.

Sierra Space added two more Japanese partners to support their investigation of Spaceport Oita as a potential landing site for Dream Chaser. Oita Prefecture, Kanematsu Corporation, Japan Airlines, and now MUFG Bank and Tokio Marine & Nichido Fire Insurance Co. are collaborating to create business opportunities for Dream Chaser and raise the space economy in Japan. More information here on Dream Chaser’s spaceport plans.

Systemic Security Investing Framework by VC Firm, First In.

First In shared an insightful article on the importance of envisioning technology integration with a systemic point of view in a unified ecosystem. A systemic security approach is required when lives are on the line and you need to understand the interconnectedness of various threats - this spans across cyber, supply chains, kinetic threats and more.

In the investment world, keeping a perspective above market segments and specific customers is critical to knowing how a technology will perform across domains to safeguard national security interests. Herein, First In also highlights why “Defense Tech” is “having a moment” amongst investors.

Armada Delivers Speed at the Edge of Conflict.

Microsoft (Nasdaq: MSFT) led a $40 million funding round to develop Armada’s mobile data centers for SpaceX’s broadband network. Just 6 months out of stealth mode, Armada has raised $100 million to enable edge computing around the world with rugged data centers that can process data in real-time in remote areas. Extending advanced computing capabilities to off-the-grid locations unlocks capabilities previously impossible. From a national security perspective, faster processing speeds enables AI architectures in remote and contested environments for a tactical edge, a true Force Multiplier.

Dawn Aerospace Secures Regulatory Approvals from New Zealand.

New Zealand has given Dawn Aerospace approval to conduct a series of groundbreaking supersonic flight tests with its Mark-II Aurora suborbital spaceplane. Dawn Aerospace aims to complete their ambitious flight tests by September, demonstrating rapid turnaround times for supersonic missions.

X-Bow Raises $70 million.

The 3D-printing solid-rocket motor company announced a successful Series B, enabling expanded production capabilities to meet the demand signal from industry and defense customers. Look for X-Bow to continue to expand the domestic industrial base as the Pentagon and major defense contractors seek reliable and timely solid-rocket motor production.

Mike Cassidy Takes the Helm at D-Orbit USA.

D-Orbit aims to bring their success in space logistics and transportation to the US with Mike Cassidy leading the way. Mike’s background includes founding several high-tech companies with successful exits and Project Leader for Google’s Project Loon. D-Orbit USA joins a competitive market with tons of experience and flight heritage. Approach’s Founder Tip in our October 2023 FOV came from Mike.

Kirsten Whittingham Joins Max Space as President.

Max Space takes an innovative approach to space habitats by making them inflatable. The expandable habitats dramatically increase volume without the need for structural mass associated with current capabilities in space. Kirsten is a long-time aerospace innovator and has held leadership roles at Axiom Space and Pratt & Whitney (RTX subsidiary).

Ariane 6’s Inaugural Flight Reaches Space.

Arianespace celebrates this month as their new heavy-lift rocket, Ariane 6, leads the way for European access to space. Arianespace already has another 30 launches on the manifest supporting European Space Agency (ESA), European Union, and commercial demand.

Brig Gen Jason Bartolomei Assumes Command of AFRL.

Air Force’s Research Laboratory (AFRL) welcomed a new commander at a change of command ceremony on July 10, taking the reins from Maj Gen Scott Cain.

Prior to his new position, Brig Gen Bartolomei served as the Program Executive Officer for Weapons and Director of the Armament Directorate at the Air Force Life Cycle Management Center (AFLCMC). AFRL plays a pivotal role in the discovery, development, and integration of new technologies in the air, space, and cyber domains.

SmallSat Alliance Appoints Angel Smith as Executive Director.

The SmallSat Alliance is a coalition of over 50 companies in the commercial space economy, advocating for increased investment in small satellite capabilities, particularly with the US Government. Angel comes from a career as a Marine combat pilot, turned White House staffer, then industry executive at Microsoft. Angel’s experience makes her an excellent representative of the ever-growing space economy.

Astranis Raises $200 million Series D.

The MicroGEO satellite company announced a $200 million Series D to fully fund its Omega program. Founded in 2015, Astranis has raised a total of $750 million in venture capital.

Frank Calvelli Announces Plan to Enhance Integration.

The Space Force acquisition chief announced that Dr. Claire Leon’s Space Systems Integration Office (SSIO) will lead an effort to improve the integration across DoD space programs. SSIO has been leading integration of Space Systems Command (SSC) for a couple years, but they’ll now have increased responsibilities over Space Development Agency (SDA) and Space Rapid Capabilities Office (Space RCO) as well.

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.

• NSF announced a SBIR/STTR Fast-Track program to enable companies with NSF lineage (as defined in the solicitation) to submit a single proposal that can provide a pathway for up to $1,555,000 in non-dilutive funding, access to the full suite of NSF SBIR/STTR Phase I and Phase II funding opportunities, and enable a rapid, seamless transition from Phase I to Phase II

• AFWERX announced the Program Year 2025 (PY25.1) Department of the Air Force (DAF) STRATFI Notice of Opportunity and it is now OPEN. STRATFI is an AFVentures program to help bridge the “Valley of Death” between SBIR/STTR Phase II and Phase III

• The United States Space Force (USSF) Assured Access to Space (AATS) Directorate of Operations (AA3) has an ongoing solicitation for Space Vehicle Processing Services at Cape Canaveral Space Force Station (CCSFS). This effort intends to increase USSF mission capabilities and to mitigate cost and schedule risks for AATS caused by oversubscribed launch manifests

• Proposals are due for NSWC’s Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0. MACH-TB 2.0 provides technology testing to reduce overall hypersonic development risks and to provide rapid transition of innovative hypersonic technologies to the warfighter

• Space Development Agency (SDA) issued an RFI for their (Proliferated Warfare Space Architecture) PWSA Tranche 3 Tracking Layer. This effort will establish sources for producing the next layer of SDA small satellites

• 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

Start your search for a Customer, End User and TPOC DURING any Phase I effort. If you are waiting to do so until after the Phase I period of performance is complete, it may be too late...

Did You Know?

NASA recently announced SBIR 2024 Results: here is a list of companies down-selected for Phase Is across technologies.