A UK satellite startup Open Cosmos secures $50M
The importance of satellites cannot be overstated, as they provide a vital means of communication and data collection for certain parts of the world. However, the use of these satellites can also be prone to misuse, especially when considering the issue of space debris.
In light of this, Open Cosmos, a UK-based startup, has developed an innovative and sustainable solution to the problem. With the aid of their low-earth orbit satellites and a comprehensive system for managing the data collected, they have secured $50 million in funding. Their platform allows multiple organizations to use their satellites and share data, thereby democratizing access to satellite technology.
Open Cosmos, established by three aerospace engineers from Spain in 2015, garnered industry attention early on by launching its first LEO satellite with minimal funding. Considering the high costs typically associated with aerospace projects, this was a remarkable feat. The company now collaborates with major space agencies, Amazon’s AWS, RHEA Group, Lacuna Space, and more.
CEO Rafel Jorda Siquier said that the company’s platform, hardware, and systems can be applied to various areas. Still, Open Cosmos’s primary focus is on energy and climate monitoring. “We only provide our services to those who aim to be responsible players in these domains,” he stated during a recent interview. Once the satellites have served their purpose, they burn up upon re-entering the atmosphere, leaving no debris behind.
This funding round is noteworthy for several reasons, from the investors involved to the broader funding context for deep and space tech technologies.
Several backers, including ETF Partners, Trill Impact, and A&G, focused on impact investments, are leading the investment round. Accenture Ventures, IREON, Wille Finance, and Claret Capital Partners are also strategic investors involved in this funding round. Entrepreneurs turned investors Taavet Hinrikus and Kheng Nam Lee have also participated in the funding. Open Cosmos can work with these investors in the future.
Accenture has announced that its investment in Open Cosmos is part of a partnership that aims to implement and manage data projects for Accenture customers, with a specific focus on sustainability. This investment is noteworthy, considering the current climate for startup investing. According to Crunchbase figures published in August, startup funding has been constrained, and the amount invested in European startups in Q2 of this year was half the amount invested in the same period last year.
The demand for artificial intelligence is currently high and is considered a salient category. However, the same cannot be said for space tech, which is still below its previous highs despite an increase at the end of 2022.
Interestingly, some reports suggest that the reason funding for space tech has increased by 120% in the first half of 2023 is not due to a sudden interest or recovery in the funding landscape but rather because so many founders delayed raising funds in 2022, leaving them no choice but to seek funding now. This has resulted in some securing deals at lower valuations or amounts.
Open Cosmos raised an impressive $50 million, more than seven times the amount it had previously raised.
Jorda Siquier, who co-founded the company with Aleix Megias Homar and Jordi Barrera Ars, did not disclose the company’s current valuation before or after this latest investment.
Although Open Cosmos is a hardware startup that has only raised around $7 million, it has been EBITDA positive since 2020, making it operationally profitable. Investors may find the company less risky to back, especially considering its current focus on sustainability and projects related to climate and agriculture.
While this puts Open Cosmos at a distance from communications and data connectivity for other purposes and users, it does not rule out future possibilities. The company’s current market opportunity is enormous, with satellites playing a critical role in natural disaster relief efforts, monitoring climate variables, and extracting insights from data. Open Cosmos estimates that the demand for earth orbit data will be worth $11.3 billion by 2031.
According to Toba Spiegel, an investment manager at Trill Impact, Open Cosmos is the leader in providing multi-sensor space data at an affordable cost and the first to create an app store-like analytics offering. Juan Diego Bernal, managing director of A&G Energy Transition Tech Fund, looks forward to working with the Open Cosmos team to solidify its position as a leader in the space technology sector and leverage its cutting-edge technology to boost the Energy Transition for a better world.