epsilon3 Secures $2.8M Seed Round for Space Operations Modernization

Modernizing Space Operations: Epsilon3 Secures $2.8 Million Seed Funding

Many emerging space companies are questioning the reliance on outdated software systems – those developed in the 1990s – for critical mission design and execution. Epsilon3 aims to address this challenge by providing a contemporary, collaborative platform to streamline their operations, moving away from traditional spreadsheets and document-based workflows.

From Prototype to Product: Epsilon3's Progress

We initially reported on Epsilon3 following their initial launch last year. Since then, the company has diligently transformed its launch operations operating system from a prototype into a fully-fledged product. This progress has resulted in a growing customer base, now encompassing approximately two dozen organizations. This achievement is further bolstered by a recently secured $2.8 million seed investment.

“Our initial focus last year was delivering a minimum viable product to early adopters,” explained Laura Crabtree, co-founder and CEO of Epsilon3. “We anticipated some resistance to adopting a new platform, but were encouraged by the willingness of companies to embrace a different approach.”

Lessons Learned at Y Combinator

The company’s development was significantly influenced by its participation in the Y Combinator Summer 2021 program.

“My background is in the aerospace industry, giving me a strong understanding of our customer’s needs,” stated Crabtree, who previously worked at SpaceX and Northrop Grumman. “I joined to gain expertise in business development and management. Y Combinator was instrumental in helping us shift our focus from what we envisioned building to what our customers truly require, and prioritizing development efforts accordingly.”

Expanding Use Cases Beyond Launch

While Epsilon3’s platform was initially conceived for modernizing launch and satellite operations, early customer feedback revealed broader applicability.

“We’ve been surprised by the diverse range of applications for our software across various sectors,” noted Max Mednik, the company’s COO. “A significant number of our clients are utilizing it for new hardware integration and testing procedures. They’ve discovered that conventional tools like Word, Confluence, or wikis are inadequate as their teams expand and they pursue ambitious objectives.”

Image Credits: Epsilon3

The Risks of Outdated Systems

“Companies can often manage with extensive spreadsheets or shared drive folders, but this approach introduces a significant risk of errors,” Mednik continued. “Manually recording data during testing, without a comprehensive audit trail, can lead to inconsistencies and data duplication. Recovering from mistakes can be incredibly time-consuming.”

Epsilon3 offers an API for integrating live telemetry data, enabling robust and reliable tracking and recording during testing. The platform also incorporates features like multi-person authorization, essential in industries like aerospace and defense where data verification requires multiple approvals.

Collaboration, Not Competition

Seamless integration with other services and platforms is a key aspect of user experience. Epsilon3’s approach shares similarities with First Resonance, another software platform focused on space-related development. However, given their complementary roles in the complex process of building and launching orbital assets, a collaborative relationship is more logical than competition.

Image Credits: Epsilon3

“We’ve already discussed data exchange with First Resonance,” said Crabtree. “They specialize in design and hardware, while we focus on testing and operations. Ideally, data will flow seamlessly between the two platforms. We are committed to providing open hooks for integrating data from other tools, recognizing the substantial value this adds.”

“We’re receiving frequent requests for enhanced automation and integrations, such as Jira for task and infrastructure management, and tools for metrics and analysis,” added Mednik. “We plan to develop native integrations alongside our API to facilitate seamless interoperability.”

Significant Growth and Future Plans

Epsilon3 is experiencing substantial growth, with customers expressing satisfaction with the platform’s capabilities. Mednik reported a 50-fold increase in annual recurring revenue (ARR) since last year, and a more than threefold increase in the customer base. Notable clients include Firefly, Astrobotic, OrbitFab, Venus, Gilmour Space, Stoke Space, and others who are currently under non-disclosure agreements.

Image Credits: Epsilon3

“We faced challenges scaling the infrastructure,” Mednik recalled. “We were asked if the system could handle a significantly larger user base. We did our best to prepare, and it performed well.”

“It exceeded expectations, Max. I believe it performed exceptionally well,” Crabtree responded.

“Thankfully, nothing malfunctioned.”

The new funding will be used to further expand the product and team. The company has grown from its original three founders (including Aaron Sullivan, co-founder and chief engineer) to a team of 21 – a significant expansion beyond the initial startup phase.

The $2.8 million seed round included participation from pre-seed investors Stage Venture Partners and MaC Venture Capital, as well as new investors Lux Capital, Village Global, Y Combinator, Pioneer Fund, Soma Capital and Broom Ventures.