U.S.-based hyperspectral information services company <strong>HySpecIQ</strong> announced Sept. 16 the closing of series B funding from venture capitalist Peter Thiel. Exceeding $20 million, the investment came from Thiel’s personal <strong>Rivendell Fund</strong>, according to Bloomberg News, and will allow the company to launch an additional 10 satellites in the future. HySpecIQ is reaching out to potential customers, embracing a broad market for its data. The company has space economy and defense industry connections. Cofounder William Sullivan, now executive chairman, began his career as a strategy consultant for information technology company <strong>Booz Allen</strong> (NYSE:BAH) before co-founding <strong>Torch Hill Investment Partners</strong>, an investor in IoT satellite operator <strong>Orbcomm</strong>. Fellow cofounder William Schuster was the <strong>CIA</strong> director of system operations for 22 years before holding positions in several space economy companies, including defense contractors <strong>Lockheed Martin </strong>(NYSE:LMT) and <strong>BAE Systems</strong> (LON :BA) and Earth observation company <strong>GeoEye</strong>. CEO John DeBlasio, an early investor in HySpecIQ, was appointed in August as part of Thiel’s investment, according to Bloomberg News. He studied engineering at the United States Military Academy at West Point and served in the U.S. Army and Army Reserve for 21 years before co-founding <strong>Sallyport Global Services,</strong> a contractor in the Iraq reconstruction. [caption id="attachment_24320" align="alignnone" width="750"]<a href="https://connectivitybusiness.com/wp-content/uploads/2021/09/hyspeciq_rgb.png"><img class="wp-image-24320 size-jnews-750x375" src="https://connectivitybusiness.com/wp-content/uploads/2021/09/hyspeciq_rgb-750x375.png" alt="HySpecIQ Announces Investment by Peter Thiel -- 1" width="750" height="375" /></a> Standard image of rooftops. Source: HySpecIQ.[/caption] <strong>A broad market</strong> HySpecIQ will find customers in the commercial sector to supplement its government contracts, such as its recently announced deal with the <strong>National Reconnaissance Office</strong>, <strong>BryceTech</strong> Vice President Rich Leshner told Connectivity Business. “Starting from [the government vertical], HySpecIQ has the potential to provide great value across industries,” Thiel told Bloomberg. HySpecIQ has posted a call for partners to its website. “We’d be interested in a wide range of industry partners: mining, oil & gas, insurance, local and federal agencies, large-scale property companies, forestry to name a few,” HySpecIQ Chief of Staff Robyna Hill told Connectivity Business. Hyperspectral imagery has broad potential, BryceTech’s Leshner said, given the data down to the pixel level captured by spectra outside the visible range. “Being able to tell what something is made of and how it changes over time finally completes the picture,” said HySpecIQ’s Schuster in a statement on the company’s website. “It’s the next frontier in remote sensing with vast applications for everything from environmental protection to national security.” Given that Thiel’s data analytics company <strong>Palantir Technologies</strong> (NYSE: PLTR) <a href="https://connectivitybusiness.com/news/strategy-markets/quantum-and-aerospace-connectivity-companies-announce-partnerships-face-spac-challenges/">recently announced an investment in</a> Earth observation company <strong>BlackSky</strong> (NYSE:BKSY), “it’s clear that [Thiel] has an increasing interest in all things geospatial intelligence and leveraging space-based assets with potentially unique features,” BryceTech’s Leshner said. [caption id="attachment_24321" align="alignnone" width="750"]<a href="https://connectivitybusiness.com/wp-content/uploads/2021/09/hyspeciq-hsi.png"><img class="size-jnews-750x375 wp-image-24321" src="https://connectivitybusiness.com/wp-content/uploads/2021/09/hyspeciq-hsi-750x375.png" alt="HySpecIQ Announces Investment by Peter Thiel -- image 2" width="750" height="375" /></a> Hyperspectral image. Source: HySpecIQ[/caption] <h1>New investment</h1> Recognition this year of hyperspectral imaging companies comes from the <a href="https://connectivitybusiness.com/news/financing/satellite-moving-towards-new-wave-spacs-or-settling-deal-volume/">pending SPAC transaction</a> of Argentina-based <strong>Satellogic</strong>, to be acquired by <strong>CF Acquisition Corp. V</strong> (NASDAQ:CFV), which is sponsored by financial services firm <strong>Cantor Fitzgerald</strong>. Satellogic expects to raise $274m in cash, including a $100m PIPE offering led by <strong>SoftBank</strong>’s (TYO:9984) <strong>SBLA Advisers Corp.</strong> and Cantor Fitzgerald. The company has raised $123.8 million in eight funding rounds, according to Crunchbase. Also in the news, India-based <strong>Pixxel</strong> plans to “build a health monitor for the planet through a constellation of cutting edge hyperspectral small satellites,” according to its website. With offices in Bangalore and Palo Alto, Calif., the company raised $8 million in five funding rounds, according to Crunchbase.
