Field of View (FOV) - March 2024

Space industry emerging trends, stealth spotlight, rideshare opportunities, founder tips and more.

Author

Approach Venture
April 01, 2024

Headquartered in LA, GITAI successfully completed a demo outside of the ISS focused on in-space servicing, assembly, and manufacturing (ISAM). Their planned tasks, crucial for on-orbit satellite servicing, were accomplished using a 1.5 meter long autonomous dual robotic arm system (S2). This milestone marks GITAI’s second successful demo, following a 2021 mission inside the ISS. Photo Credit: GITAI.

Approach Venture was formed to enable founding teams building the future of frontier technology to achieve their full potential. Today, Approach supports space companies ranging from stealth to publicly-traded as well as investors looking to participate in their growth potential. Connect with Approach to learn more.

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

Polsinelli serves as a trusted advisor to its space-tech and defense-tech clients, bringing its full suite of capabilities to bear in that capacity.  Whether providing pragmatic guidance on day-to-day matters as outside general counsel, assisting with commercial or government contracting, providing guidance with regard to IP protection and patents, or advising on general corporate matters, transactions or commercial disputes, and all other functional areas relevant to this industry, our attorneys are prepared to help our clients strategize on opportunities and confront all the challenges throughout all stages of their business lifecycle.

We have a laser focus on our clients’ goals, which informs our targeted and practical approach to bring those goals to full fruition. With more than 1,000 attorneys in 20+ offices nationwide, Polsinelli has the industry expertise and deep technical knowledge to help. Our clients range from scrappy, early-stage start-ups seeking seed capital or their first R&D grant, to scaling businesses raising venture capital or private equity, all the way to industry behemoths that are shaping this rapidly evolving industry.

Regardless of Company stage or software / hardware focus, Polsinelli is available if you’re seeking a strong, frontier tech-focused legal team. Email [email protected] to schedule an introductory call.

Autonomous Ground Demonstration in April.

Arkisys shows how its Port Module can add propulsion jet packs to satellites in space using a robotic arm. Pictured is GATE Space’s propulsion jet pack to display a full-scale demonstration of moving the Company’s propulsion module using a robotic arm to show the ability to add to another satellite, after it is in orbit. Photo Credit: Arkisys.

At the end of April, Arkisys will be hosting a ground demonstration at their headquarters in Los Alamitos to validate the ability of a long duration platform to assemble a satellite on-orbit.

“This is our first major holistic demonstration that walks through an OTV arriving at our Port Module, the robotics offloading cargo, and then the Port Module assembling a new satellite to release”, Arkisys CEO Dave Barnhart shared. Multiple dual-use organizations will be participating and Arkisys is opening its testbed for use in the summer to test any technology that can benefit from a long duration platform that can assemble, modify, maintain any type of space system.

About Arkisys

Founded by a former Co-Founder / VP of Millenium Space and DARPA PM, Arkisys plans to build a Port in space to support scalable rapid prototyping, new payload and technology testing, assembly and integration of new free-flying space platforms, and destinations for orbital transfer vehicles and on-orbit assembly and manufacturing companies to dock to. The Company is on contract with US Space Force to advance their product roadmap.

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.

Chief of Space Operations General Chance Saltzman delivers keynote at the Mitchell Institute for Aerospace Studies' Spacepower Security Forum in Arlington on March 27, 2024. In the FY2025 DoD Budget Request, critical investment highlights include $33.7 Billion for space capabilities and $28.4 Billion for missile defeat and defense. Photo Credit: Joseph Clark, Department of Defense.

Space Acquisition Interests in DC.

Immediate term high priority items for DoD decision makers within the space industry working in DC include but are not limited to reduction in cost of missile warning capabilities, point-to-point delivery (emerging trend in last month’s FOV), cyber, resilient PNT, space domain awareness and SATCOM architectures.

We expect to see a number of DoD solicitations released this quarter which seek point-to-point delivery solutions and although the reason isn’t immediately clear to those without a clearance, it may be soon. This includes space to space and space to Earth delivery.

US Subsidiary Creation to Participate in DoD Opportunities.

Over the last six (6) months, Approach has received inbounds from twelve (12) separate space companies with current headquarters in five (5) different countries looking for support in navigating the formation of US subsidiaries and how the DoD works in order to participate in US gov’t opportunities.

Highlighted in Space News by Sandra Erwin in a September 2023 article titled, “Overseas firms on a journey to establish themselves as US entities”, several big name firms and a few startups were mentioned but we’re seeing this wave growing larger with Pre-Seed to Seed staged founders planning to announce either HQ moves to the US or newly established US subsidiaries this year.

Important to Note: the Department of the Air Force (or “DAF”) conducts risk-based due diligence of potential contractors to evaluate conflicts related to foreign employees, foreign ownership and investment, cybersecurity practices, patents and proprietary information, and other factors related to foreign influence.

  • In general, US federal contractors are required to be incorporated in the US, majority owned by US persons, and perform federal work within the US

    • If the DAF assesses business concern security risks, the DAF can choose to create a risk mitigation plan or exclude a business entirely from receiving a contract award

  • The intent of these rules is to protect US IP against foreign actors, but also to ensure that government spending is reinvested within the US industrial base

Connect with Approach if you’re looking to understand best practices of operating as a startup within the United States or navigating the DoD market.

Rideshare Opportunities to Orbit

As many new space companies embark on vehicle demonstration missions, hosted and deployed payload opportunities arise. Below contains rideshare opportunities which might help your Company achieve flight heritage for a lower price point.

H2 2025 LEO to LLO Opportunity.

  • Orbital Regime: LEO to LLO

  • Target Launch Window: H2 2025

  • Payload Type(s): Hosted (up to 30 kg) and Deployed (up to 60 kg ranging from 1U-16U form factors)

  • Spacecraft Size: ESPA-Class

  • Spacecraft Type: Transport Vehicle

  • Transport Provider: Undisclosed

  • Launch Provider: SpaceX

Large 2026 LEO Opportunity.

  • Orbital Regime: LEO

  • Target Launch Window: 2026

  • High Level Mission CONOPS: 300-400 km drop off; flexible inclination

  • Payload Type(s): 3,000 kg minimum - 4,000 kg maximum

  • Spacecraft Type: Transport Vehicle

  • Transport Provider: Undisclosed

  • Launch Provider: SpaceX

Connect with Approach to meet your potential rideshare partner.

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.

Source: Deutsche Bank Space Sector Trading Comps as of 3/29/2024.

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.

On March 5th, US Senator Krysten Sinema (I-AZ) announced she will not seek reelection in the upcoming 2024 cycle, vacating a seat she’s held since 2019. Sinema chairs the Space and Science subcommittee which has jurisdiction over national and civil space policy as well as oversight of agencies including NASA, the FAA’s Office of Commercial Space Transportation, the National Space Council and others.

As mentioned in our November FOV, Sinema has championed reform of the licensing and approvals process for both launch and reentry operations to ensure America remains a leader in innovative space technologies. On March 19th, Sinema along with Senators Mark Kelly (D-AZ), Ben Ray Luján (D-NM), Marco Rubio (R-FL), Rick Scott (R-FL) and John Cornyn (R-TX) introduced the Licensing Aerospace Units to New Commercial Heights (LAUNCH) Act, a bill which instructs the FAA along with NOAA’s Office of Space Commerce to incorporate input from industry as well as provide assistance to commercial launch license applicants, all with the intention of further streamlining the licensing process.

With Senator Sinema stepping down in the coming months, the subcommittee’s next chair will have an immense responsibility (and opportunity) to shape policy and regulations for commercial, exploration, scientific and security activities in orbit.

SpaceX launched the first six “Direct-to-Cell” or “DTC”-capable Starlink satellites among a batch of 21 spacecraft launched via Falcon 9 from Vandenberg Space Force Base’s SLC-4E on January 2, 2024. Photo credit: SpaceX.

The FCC’s Supplemental Coverage from Space (SCS) regulatory framework, which enables space-based backup of terrestrial wireless networks in the event of a natural disaster (among many other benefits and applications), was approved unanimously in a March 14th vote.

Beyond serving as a communication bridge during emergencies, the newly approved framework is a green light for services commonly referred to as “Direct-to-smartphone,“ “Direct-to-Cell” or “Direct-to-Device” (emerging trend in October FOV) which will provide connectivity in locations where cell phones were previously unusable. Geographic dead zones, deeply rural settings, mountainous terrain and even the open ocean will become areas in which cell phones can send and receive critical information.

While the benefits to consumers are expansive and the business implications of new addressable markets are incredibly exciting, mitigating interference between terrestrial networks and satellite signals is a highly complex regulatory and technical challenge. Services will initially offer low-bandwidth functionality (i.e. texting), with voice and high-speed data coming online later. Of note for the scientific community, the FCC is still considering how to protect radio astronomy within the new framework.

For more information on the space regulatory environment, visit the Association of Commercial Space Professionals (ACSP).

This month’s Field of View is presented by In Orbit Aerospace.

In Orbit’s recent test campaign included a series of low and medium altitude drops to measure vehicle aerodynamics and test parachute deployment sequence. Testing was conducted in the Company’s “backyard” in SoCal. Photo Credit: In Orbit.

Headquartered in Los Angeles, In Orbit Aerospace is focused on providing tactically responsive point-to-point cargo delivery solutions to help solve contested logistics (both terrestrial and in-space).

In Orbit's leadership team founded the Company following time at Raytheon, SAIC, NASA, L3Harris, Aerospace Corporation and Northrop Grumman. Today, In Orbit is on contract with the US Space Force to advance their product roadmap and will be announcing several recently awarded contract wins and a funding round near term.

To connect with In Orbit directly, the Company’s CEO is open to meeting you: [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.

Phantom Space Announces Bridge Funding Round.

Headquartered in Arizona, Jim Cantrell’s space company focused on building launch vehicles and satellites announced a Bridge round (raise total not disclosed) with Balerion Space Ventures as their lead.

“We believe that companies who can both build and launch satellites will dominate the future market space by eliminating the one thing that seems to limit scaling: launch.” - Jim Cantrell told Debra Werner from SpaceNews.

Iridium (NASDAQ: IRDM) to Acquire Satelles for $115 Million.

In their first-ever acquisition, Iridium announced an agreement to acquire Position, Navigation and Timing Services (or “PNT”) services provider, Satelles.

Important to note, Iridium was a shareholder in Satelles prior to the acquisition announcement - owning ~20% of the Company. Iridium reported a growing need for delivering PNT information that cannot be jammed or spoofed for dual-use applications.

VAST Onboards Clay Mowry as Advisor.

Clay Mowry joined VAST as an Advisor to, “Continue to develop the Company’s commercial and government strategy toward winning a NASA Commercial LEO Destination (CLD) Phase II contract. NASA CLDs will be the next-generation space station(s) for the era after the ISS is retired.” - VAST CEO, Max Haot.

Clay joins following time at Voyager Space as Chief Revenue Officer as well as VP of Sales, Marketing and Customer Experience at Blue Origin.

Fortius Metals Secures First DoD Contract.

Fortius Metals, a large format additive manufacturing company based in CO specializing in new materials, has received the amount of $1.25M as part of an AFWERX Direct-to-Phase II SBIR contract, to qualify its IN625-RAM2 wire alloy.

The qualification of this nickel alloy will help build large-scale 3D-printed parts for hypersonic applications.

Aerospace Corporation Moves HQ to DMV.

In an effort to improve proximity to decision makers in DC, Aerospace Corp is moving their HQ from El Segundo to Chantilly, VA. Relatedly, the non-profit expects to keep 2,800 employees at their location in El Segundo which is connected by a walking bridge to Space Systems Command.

Additionally, Aerospace Corp plans to invest $100mm in their El Segundo Regional Office for R&D activity. Their other major regional office is located in Colorado Springs.

ExLabs Announces Facility Expansion & New Hires.

Focused on a 2028 mission to rendezvous with the Apophis asteroid before reaching Earth, ExLabs has announced footprint expansion into a 9k SF facility in Long Beach. The Company also announced the addition of a number of experienced team members:

  • Tom Cooley, SVP of Technology Strategy

    • Former Air Force Research Laboratory Space Systems Chief Scientist

  • Dalibor Djuran, VP of Spacecraft Engineering

    • Former E-Space Chief Engineer

  • Keiko Nakamura, Science Advisor

    • Spent nearly 20 years at NASA and served as co-investigator on asteroid missions including Hayabusa2 and OSIRIS-Rex

    • Previously Director of BD at GITAI

Astroscale US Announces Board of Directors.

On-orbit servicing Company, Astroscale, announced new Board members for their US subsidiary:

Planet Labs (NYSE: PL) Announced $20mm Contract.

During Planet’s Q4 and FY2023 earnings call, the Company announced a multi-year data-license agreement with Carbon Mapper to provide hyperspectral core imagery until 2030. The $20 million agreement is made possible by initial funding led by a major climate philanthropy.

The first Tanager satellite of their constellation is planned to launch this year and is designed to capture hyperspectral imagery across the visible and shortwave infrared regions (VSWIR).

Agile Space Nets TacRS Contract.

Headquartered in Durango, CO, Agile Space announced a Direct to Phase II Tactically Responsive Space (or “TacRS”) award to develop a 40 ft high cube shipping container that fits on a flatbed truck and is expandable to provide over 500 SF of working space.

The customized container is called a Mobile Payload Processing Center (or “MPPC”) which aims to increase mission effectiveness in remote locations and can process ESPA and ESPA Grande sized payloads. The MPPC provides a mobile environment, including a clean room, to prepare payloads for responsive launches.

Additional use cases for the MPPC: mobile command center, propellant loading facility, decontamination unit, or any other facility in support of tactically responsive launch. The MPPC builds on the Company’s experience of designing, fabricating, and operating mobile and/or containerized aerospace facilities. 

Mobile Payload Processing Center rendering. Photo Credit: Agile Space.

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.

STRATFI/TACFI is open to Small Business Concerns (SBC) with an awarded Phase II Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) contract. The small business must either have a current Phase II contract, with a minimum of 90 days of performance executed, or have completed a Phase II contract within two years of submitting a capability package. The deadline for government champion lead capability package submission is noon EDT on April 12, 2024. Photo Credit: AFWERX.

  • The Space Development Agency (SDA) is soliciting novel architecture concepts, systems, technologies, and capabilities that enable leap-ahead improvements for future Proliferated Warfighter Space Architecture (PWSA) tranches and capability layers through their Systems, Technologies, and Emerging Capabilities Broad Agency (STEC) BAA

  • The Space System Command (SSC) Advanced Technologies Branch released the FreeSol BAA

    • This effort is seeking innovative space and cyber technologies, to enable capabilities to counter emerging space threats

  • NRO released the Agile Launch Innovation and Strategic Technology Advancement (BALISTA) which explores key functions of innovative launch technologies from ground operations to on-orbit services

  • Space Systems Command Space Domain Awareness and Combat Power (SSC/SZ) released an RFI for a Space Domain Awareness (SDA) Geosynchronous Satellite

    • The primary objective of this notional multi-Space Vehicle (SV), replenishable constellation will be to detect, track, and characterize Resident Space Objects (RSO's) in and around the geosynchronous equatorial orbit (GEO)-belt

  • FOUNDER PITCH OPPORTUNITY on May 14 during Space Tech Expo in Long Beach, CA; deadline to submit is April 2 at Noon PT

  • 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

The Onion Theory of Risk.

Marc Andreessen shares a framework that Benchmark co-founder Andy Rachleff taught him.

Did You Know?

Space Development Agency recently issued a notice to industry via Systems, Technologies, and Emerging Capabilities (or “STEC”) Broad Agency Announcement requesting analysis and studies on the feasibility and availability of in-space disposal services?