These Startups Take Aim at SpaceX’s Satellite Empire
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| By Chris Graebe |
People who first saw Elon Musk’s SpaceX rockets fly across Southern California skies told stories about UFOs colorfully lighting up the night with billowy cloud-like streaks.
Of course, today, we know that flying saucers didn’t create the unique formations. They were Elon Musk’s SpaceX Falcon 9 rockets launching from Vandenburg Airforce Base, around 213 miles north of where this photo was taken.
The sight is commonplace now, and very indicative of a space-race revival.
Officially known as Space Exploration Technologies Corp., the private company’s goals include reducing space transportation costs and ultimately developing a sustainable colony on Mars.
Additionally — and possibly more importantly — SpaceX’s global satellite internet network called Starlink consists of more than 6,000 mass-produced small satellites in low Earth orbit.
They provide internet access to more than 2 million subscribers, and SpaceX plans to build up to as many as 42,000 eventually.
Musk & Co. better not rest on their laurels, however.
Boom in Mega Constellations
China just launched 18 Qianfan satellites from the Taiyuan Satellite Launch Center on Aug. 6.
This is the country’s answer to Starlink, SpaceX’s satellite internet program.
Of the 10,000 or so active satellites in space right now, most are there thanks to Elon Musk’s space startup.
(Qianfan isn’t the only company that’s coming for Starlink’s satellite crown. Elon’s worst nightmare is a Space Coast-based startup that can launch satellites faster and cheaper. See how you can claim your stake when you watch this video.)
Qianfan, also known as G60 Starlink, has its sights set on launching a constellation of 40,000 satellites for providing broadband coverage from space.
G60 Starlink is among three planned Chinese mega-constellations in the coming years.
These mega constellations refer to networks of hundreds or thousands of orbiting satellites.
Decreasing launch costs and ongoing commercial innovation are drivers of growth in the satellite space.
In fact, the number of satellites launched per year has skyrocketed at a rate of 50%, while launch costs have fallen 10-fold over the past 20 years.
Of course, satellites have a variety of uses outside of broadband connections. They include weather forecasting, navigation (GPS), scientific research, weather forecasting and military uses for reconnaissance, signals intelligence and potentially weapon delivery.
For example, SkyBox (acquired first by Alphabet (GOOGL) and later by Planet) sent images of Earth back to consumers on earth.
Companies like O3b (acquired by SES in 2020) and Astranis provide internet connectivity to otherwise unconnected parts of the world.
GPS-related information and services is now a $300 billion per year industry that supports more than $1.4 trillion in associated economic activity in the U.S. alone, according to McKinsey.
There’s a lot of money up for grabs here. Today's newcomers are taking matters into their own hands, leveraging cutting-edge technology such as reusable rockets, miniaturized satellites and advanced propulsion systems.
These innovations are crucial for reducing costs and keeping the boom in satellite technology vibrant.
Private companies are leading the way …
Here are some must-have satellite solutions and companies already working on them.
Refill ‘er Up
The life of a satellite is only as long as its “gas tank” capacity allows. And once it runs out of fuel, it’s rendered useless.
But what if there were “gas stations” in space?
Well, early this year refueling startup Orbit Fab and in-space servicing specialist ClearSpace announced a partnership.
The two companies plan to pair Orbit Fab’s fuel depot with a ClearSpace shuttle. Over the long term, they’ll team up on solutions for mission extensions, transportation and other mobility and logistics services.
Curtailing Collisions
Imagine driving on a busy highway with large, heavy objects flying at you from every direction. Well, space vehicles and satellites encounter space debris every day in the already heavily trafficked low-Earth orbit.
The likelihood of collisions grows stronger every year.
Private firms like OKAPI:Orbits are creating software to help reduce the risk of debris-satellite crashes.
Cleanup on Crater No. 9
The other, more obvious way to avoid collisions is by removing space debris.
Of all the man-made satellites in low Earth orbit, 95% are space junk. This includes rocket thrusters, derelict satellites and most of all, tiny fragments of debris from collisions and explosions.
All this debris poses a potential threat to the future of space travel, and satellites are actively being used to remove large debris from space.
Starfish Space and Astroscale are just two startups tackling this issue.
Mechanics on the Moon
If a satellite malfunctions or loses connectivity, not much can be done to salvage it.
But servicing vehicles that act as garages to make repairs mid-flight can increase a satellite’s useful life.
Similarly, space tugs that move satellites from one orbit to another without requiring the satellite’s own propulsion can help with fuel conservation.
D-Orbit, Atomos Space and Space Machines are working on in-space servicing offerings.
Size Really Matters
In recent years, small satellites have opened up new possibilities for the space industry.
The term “small” is typically used to describe their mass and size. In a nutshell, any satellite with a mass below 1,100 poundsis considered a small satellite, also called a smallsat or a miniature satellite.
Ranging from the size of a refrigerator to a shoebox, these mini satellites are much nimbler than traditional ones.
This allows for lower development and launch costs, rapid deployment and operation in large constellations. Countless missions, including navigation, research and remote sensing, rely on these compact devices.
Kepler Communications and EnduroSat are just two companies developing solutions in this arena.
These “New Space” technologies are key to expanding satellite capabilities.
And sectors like defense and communications that rely on new satellite tech are really beginning to lean on startups for fresh ideas and solutions …
In fact, I am about to share the name of another startup that offers an even brighter future than those above.
It has a technology that can deliver satellites to orbit for 92% less cost and 52 times faster than SpaceX.
I urge you to check out my Summer 2024 Private Investment Summit here while you can.
Happy hunting,
Chris Graebe
