Californian Earth imagery startup Hera Systems has closed a multimillion dollar series A round to begin launching an initial nine-satellite constellation in October, SatelliteFinance has learnt. Firsthand Capital led the round, giving it the funds to develop a demonstrator satellite, purchase parts for its high resolution imagery spacecraft, and book launch agreements.
Californian Earth imagery startup Hera Systems has closed a multimillion dollar series A round to begin launching an initial nine-satellite constellation in October, SatelliteFinance has learnt.
Firsthand Capital led the round of convertible notes, giving it the funds to develop a demonstrator satellite, purchase parts for its high resolution imagery spacecraft, and book launch agreements.
The group is understood to be already heading into a series B round that will be larger, targeting US$45m-US$53m before the end of February to complete the initial batch of satellites, as well as a technology demonstrator for a bigger next gen spacecraft. Its second round is set to be a combination of debt, equity, and finance purchase orders with customers, and is expected to tie the venture over until it can begin generating revenues.
Hera, which raised US$650,000 via convertible notes in seed funding earlier this year, is set to reveal plans this week for an initial constellation of sun-synchronous and inclined orbit birds that can cover the entire globe on a daily refresh rate. It hopes to later expand, contingent on market demand for one metre and higher resolution imagery and video, to a 48-strong system that can provide near-hourly updates.
It aims to differentiate itself from a growing list of Earth imaging competitors by offering end users an all-in-one feature-rich data package, combining imagery products with analytics that can be delivered on demand to mobile devices. The group is also looking to offer ‘on board analytics’ in what it claims is an industry first, with detection systems based on algorithms that can alert other birds in the constellation to interesting areas.
“What we’ve learned from talking with customers and watching this industry closely for the past 16 years is that people don’t want to go to multiple providers for their imagery and analytics needs,” Hera CEO and co-founder Bobby Machinski said.
“Today’s customers want and expect a variety of features and intelligent analytics capabilities from a single source – and they expect a very high value for every dollar spent.”
A mechanical engineer, Machinski founded MACH-T3 Engineering in 2002, specialising in large scale projects for the US government and aerospace contracting agencies, ranging from structural design applications to vibration and thermal analysis. Dave Squires, Hera’s VP of space systems, has worked as a NASA contractor and an independent space systems consultant.
Similar to the other EO startups to have been spawned amid a boom in entrepreneurial space activity, such as Planet Labs and Skybox Imaging, Hera is keeping costs down by using off-the-shelf components to build its microsatellites.
By making its satellites launch vehicle agnostic with their own propulsion systems and on a standardised form factor, the group has also been able to take advantage of the decreasing cost to access space, thanks also to the miniaturisation of technology.
It has booked two launches next year – on 1 October and 15 November, with a third likely in early 2017 to wrap up the initial batch, which is insured.
Following testing and calibrations, Hera is gearing up to begin generating revenues within 30 days after its first launch, and is already in negotiations with potential government and commercial customers.
The spacecraft, with integrated propulsion, will be able to stay in 350km orbits for three to five years. Longer life cycles are projected if the spacecraft are launched in lower orbits.
