This Week In Space Industry (06/04/2024)

[5-min read] Virgin Galactic countersues Boeing

April 06, 2024

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Welcome to Rocket Roundup, Your favorite space newsletter! Let's embark on this cosmic journey together! In This Issue:

  • Biden Considers Taxes on Commercial Launchers

  • SpaceX's shot down investor IPO hopes

  • Varda Raises $90M Series B

(Top Stories of this week)

Canada to Support Telesat Via $1.6B Loan

Canada has increased its investment in Telesat's Lightspeed low Earth orbit (LEO) broadband constellation by 50%, offering a loan worth 2.14 billion Canadian dollars ($1.6 billion). This investment, nearly half of the constellation's $3.5 billion budget, includes warrants allowing the government to purchase 10% of Lightspeed for $300 million.

Telesat, which plans to deploy the satellites via SpaceX starting in 2026, expects the investment to save $750 million in borrowing costs and propel its presence in the Canadian space ecosystem. Despite revenue declines in 2023, Telesat anticipates increased competition from SpaceX's Starlink constellation in the enterprise connectivity market. (Read More)

Biden Considers Taxes on Commercial Launchers

The Biden administration is considering requiring space companies to pay taxes to contribute to the air traffic control system for rocket launches. This proposal aims to ensure that space companies financially support the management of airspace during launches, similar to how commercial airlines contribute to the Airport and Airway Trust Fund. Congress has also passed a bill allowing the military to charge launch providers for indirect costs on bases. These measures seek to ensure that the growing commercial space industry bears its fair share of the costs associated with maintaining safe airspace operations. (Read More)

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(Fundings & Earnings news)

Phase Four Secures $14.9M from DARPA

Phase Four has secured a $14.9 million contract from DARPA to develop a thruster utilizing thin air in Very Low Earth Orbit (VLEO) as propellant, aiming to address congestion in LEO. The four-year contract will culminate in an on-orbit demonstration of the air-breathing thruster system, potentially opening up a new market for satellite services. With plans for a multimode propulsion system and expected delivery of 82 systems in the next 15 months, Phase Four is expanding its capabilities and workforce. The company also announced its board of advisors, including retired Gen. William Shelton and former director of the Office of Space Commerce Kevin O’Connell, among others. (Read More)

HawkEye360 Raises $40M in Debt

HawkEye 360 Inc. has secured $40 million in debt financing from Silicon Valley Bank (SVB), augmenting its total capital raised to over $400 million in under five years. This funding, coupled with previous rounds, underscores investor and lender confidence in the company's strategic vision and momentum. The financing will bolster HawkEye 360's efforts in advancing its technological infrastructure and expanding its satellite constellation, further solidifying its position as a leader in providing geospatial solutions and RF data analytics. SVB emphasizes the importance of HawkEye 360's innovative technology in spectrum mapping and monitoring, reaffirming its commitment to supporting the company's growth strategy. (Read More)

Descartes Labs Acquires Geosite

Descartes Labs, a leader in geospatial analytics and AI solutions, has acquired all operating assets of Geosite, a SaaS provider catering to property and casualty insurance companies. This strategic move aims to unlock new revenue opportunities and bolster Descartes Labs' presence in the geospatial analytics market. Rachel Olney, Geosite's CEO, will lead the insurance technology business within Descartes Labs, leveraging Geosite's expertise in commercial property and casualty insurance risk management. The acquisition underscores both companies' commitment to innovation and providing enhanced geospatial solutions across industries. (Read More)

Varda Raises $90M Series B

Varda Space Industries, pioneering in-space manufacturing and hypersonic Earth re-entry logistics, has secured a $90 million Series B funding round led by Caffeinated Capital, with participation from Lux Capital, General Catalyst, Founders Fund, and Khosla Ventures, bringing its total funding to $145 million. Since its inception in 2021, Varda has successfully launched and re-entered its first hypersonic re-entry capsule, W-1, carrying an experiment to reformulate Ritonavir, a prominent antiretroviral drug.

Leveraging microgravity conditions in low-Earth orbit, Varda offers a unique environment for pharmaceutical processing, aiming to revolutionize the industry with cost-effective orbit and re-entry systems. Varda's modular capsule design enables diverse payload opportunities, facilitating research and development in space for various industries, with plans for monthly capsule launches in the future. (Read More)

(Other news around the web)

DISCLAIMER: (Rocket Roundup is an independent publication and is not affiliated with any government agency or space organization)