Space startup Astranis has raised a $250 million Series C round to provide it with a capital injection to help scale manufacturing of its unique MicroGEO satellites — geostationary communications satellites that are much smaller than the typical massive, expensive spacecraft used in that orbital band to provide communications and connectivity to specific points on Earth.
The Astranis Series C was led by BlackRock-managed funds, and includes participation from a host of new investors including Baillie Gifford, Fidelity, Koch Strategic Platforms and more. Existing investors including Andreessen Horowitz, Venrock, and more also chipped in, with the raise valuing the company at $1.4 billion post-money.
This brings the total funding raised by Astranis to over $350 million, including both equity and debt financing. Astranis got started only in 2016, and was part of the YC Winter 2016 cohort. While a lot of other companies are looking to build satellite constellations in low-Earth orbit to provide low-cost broadband on Earth, Astranis, led by co-founder and CEO John Gedmark, is focused on the GEO band, where the large legacy communications satellites currently operate, orbiting the Earth at a fixed position and providing connectivity to a set area on Earth.
Gedmark has told me previously that the company's offering is very different from the LEO constellations being put up and operated by companies including SpaceX, because they're essentially a much more targeted, nimble solution that works with existing ground infrastructure. Customers who have a specific regional need for connectivity can get Astranis to put one one up at a greatly reduced cost compared to a traditional GEO communications satellite, and do so to replace or upgrade aging existing satellite network infrastructure, for example.
It's worth noting that BlackRock, which led this round, has also been a key participant in the PIPE components of high-profile space startup SPACs like launcher company Astra's. Not saying that's the exit plan this round is setting up, but definitely something to think about.