Japanese Earth observation venture Axelspace is considering a series B funding round ahead of a planned IPO, after raising ¥1.9bn (US$15.8m) in a series A last year. The startup plans to launch a microsatellite constellation and then enter the data business.
Japanese Earth observation venture Axelspace is considering a series B funding round ahead of a planned IPO, after raising ¥1.9bn (US$15.8m) in a series A last year.
Proceeds from the first round are being used to develop and launch three Earth observation satellites in 2017. Axelspace plans to then enter the satellite image and data service market in collaboration with its strategic partners.
The ¥1.9bn represents less than 10% of the ¥20bn (US$176m) Axelspace has told SatelliteFinance it needs to raise to fund its planned 50-microsat constellation, which it expects to be functional by the end of 2022.
How it raises more capital will depend on the investment climate and a spokesperson said that at the moment there are considerations, but not preparations, with a potential series B and/or an IPO both on the table.
Notable investors so far include Japanese satellite operator SKY Perfect JSAT and conglomerate Mitsui & Co, which participated in the initial ¥1.8bn (US$15m) series A last September before it was enlarged. Tokyo-based VC fund Global Brain led the round.
In addition to their financial contribution, JSAT and Mitsui also came on board as strategic partners.
A number of other firms invested including SBI Investment, Energy & Environment Investment, SMBC Venture Capital and Seibu Shinkin Capital, as well as the Japan Science and Technology Agency.
In November, a further ¥100m (US$800k) was secured as part of the series A from VC fund Itochu Technology Ventures and Japanese meteorological forecaster Weathernews Inc, with the latter agreeing to become Axelspace’s third strategic partner and build business ties with the startup.
In December Axelspace announced AxelGlobe, a data platform that will capture imagery from its microsat constellation. The Axelspace fleet will observe more than half of the dry land on Earth, including almost all areas which are economically active. AxelGlobe will be designed to accumulate the data, analyse it, and extrapolate it to “predict future phenomena”, Axelspace said.
“AxelGlobe’s imagery and the deriving intelligence data will be available to industries all over the world through web interfaces and a complete API, allowing for the development of customised applications to fit any kind of business needs,” the company added.
Axelspace has said its data would have applications for industry, agriculture, energy resources and forestry.
The company has developed an 80kg microsat named GRUS, which it says can capture images with 2.5m ground resolution and a width of more than 50km.
Founded in 2008, the company began as a technology firm tapping microsat knowledge from the University of Tokyo and Tokyo Institute of Technology, and is now moving into the data sphere.
Earth observation is an increasingly crowded market with recent competition to supply data coming mainly from US-based players such as Skybox Imaging, Planet Labs, BlackSky Global, Spire and Hera Systems, as well as Finland’s Iceye.
