Astranis Secures $200 Million For Omega Program and Next-Gen Broadband Spacecraft

Astranis, a geostationary satellite manufacturer, has successfully raised $200 million to fully fund its Omega program through the launch of its first next-generation broadband spacecraft, scheduled for 2026.

This latest investment marks a critical step forward for the company, which has now secured a total of $750 million since its inception in 2015. Astranis aims to revolutionize satellite technology by offering cost-effective, compact satellites approximately the size of a dishwasher, a stark contrast to the traditional school bus-sized geostationary broadband spacecraft.

The Omega spacecraft, though slightly larger than its predecessors, promises to deliver five times more throughput. Despite its increased capacity, up to 12 Omega satellites could still be accommodated on a medium-class rocket, such as SpaceX’s Falcon 9.

"The new generation of Astranis satellites will significantly enhance our ability to provide affordable, high-speed internet to underserved regions," - John Gedmark, Astranis CEO

The Series D funding round, co-led by venture capital firm Andreessen Horowitz and investment firm BAM Elevate, underscores the confidence investors have in Astranis's innovative approach. Andreessen Horowitz, which first invested in Astranis in 2023 by leading a $200 million equity and debt funding round, continues to show strong support. The Series D round also saw participation from notable investment management firms Blackrock, Fidelity, and Baillie Gifford.

Astranis’s unique business model involves building and operating its satellites while leasing their capacity over an approximate eight-year design life. However, the company has remained tight-lipped regarding potential customers for the Omega program.

To date, Astranis has launched only one spacecraft, Arcturus, in April 2023. Initially intended to provide broadband services over Alaska for local telecom Pacific Dataport, Arcturus encountered a setback when two onboard solar array drive assemblies failed shortly after deployment. In response, Astranis repositioned the satellite to a geostationary orbital slot over Asia, assisting Israeli satellite operator Spacecom in meeting a regulatory deadline for utilizing the position.

The Arcturus issue prompted delays for a subsequent batch of four satellites, collectively known as Block 2, which were originally scheduled to launch on a Falcon 9 last year. Astranis has since resolved the technical problem and confirmed that these satellites are on track for a Falcon 9 launch this year, though further details remain undisclosed. One of the Block 2 satellites will serve as a replacement for Pacific Dataport.

Following the Block 2 launch, five Block 3 satellites are slated to launch in 2025 on an undisclosed dedicated rocket. These nine upcoming satellites are designed to provide 10-12 gigabits per second of throughput for their customers. A key component of the Omega design, aimed at delivering 50 Gbps of throughput, is a large deployable reflector from Louisville, Colorado-based Tendeg.

While larger geostationary broadband satellites can offer higher throughput due to their capacity for more transponders and power, as well as a longer service life, Astranis and other small geostationary specialists like Switzerland’s Swissto12 are tapping into the growing demand for more affordable, regionally focused spacecraft.

The Block 2 series also includes a satellite for capacity reseller Orbits Corp of the Philippines and two spacecraft for U.S.-based connectivity specialist Anuvu. Block 3 comprises another satellite for Orbits Corp, one for Thai fleet operator Thaicom, one for Argentina-based remote connectivity provider Orbith, and a pair of spacecraft for Mexican telecom Apco Networks.

As Astranis continues to forge ahead with its innovative satellite technology, the successful funding and upcoming launches signify a future for their expanded global connectivity missions.