Hydrosat Secures $10M Funding for Ground Temperature Analytics

Hydrosat Secures $10 Million in Seed Funding

Geospatial data startup Hydrosat has successfully raised $10 million in seed funding. This investment will be utilized to expedite the commercial launch of its innovative ground temperature analytics product.

Data Acquisition and Applications

The company’s core strategy involves gathering surface temperature information through the use of satellites fitted with infrared sensors. This collected data will be offered as a subscription-based analytics service.

Potential applications include enhanced monitoring of water stress levels, assessment of wildfire risks, and tracking of drought conditions – all critical concerns given California’s recent record-breaking dry spell and the extensive wildfires experienced across the Western United States.

Continuous Data Collection

Hydrosat’s approach centers on continuous data collection. Each satellite will consistently monitor the portion of the Earth within its orbital path. This eliminates the necessity for specific tasking requests to observe particular areas.

“For many of our intended applications, particularly in environmental monitoring, agriculture, and forestry, this continuous availability is highly advantageous,” explained Hydrosat CEO Pieter Fossel. “The data is archived for future retrieval, enabling its use immediately, within the following week, or even years later.”

Strategic Funding and Partnerships

The decision to pursue additional funding shortly after a $5 million financing round in June was driven by a favorable opportunity. A connection was made with OTB Ventures, a European-based firm with a proven track record of investing in companies like ICEYE, a prominent radar satellite company.

Fossel stated, “The opportunity to collaborate with this new investor, alongside the continued support of our existing investor group, was a key factor in our decision.”

Future Plans and Product Rollout

The newly acquired funds will facilitate the launch of Hydrosat’s commercial subscription analytics product in early next year. Furthermore, it will enable the company to finalize arrangements for its inaugural satellite mission, scheduled with space services provider Loft Orbital in the latter half of next year.

This investment will also allow for substantial growth in Hydrosat’s workforce, accelerating its time to market.

Instrument Development and Data Calibration

Hydrosat is collaborating with ABB, a Swiss technology company, to develop the thermal infrared instrument destined for space. ABB has a history of building imagers and sensors for organizations including NASA, the Canadian Space Agency, and the Japanese Aerospace Exploration Agency.

An infrared imager constructed by ABB is currently operational aboard GHGSat, a spacecraft used for detecting and measuring greenhouse gas emissions.

The startup is also partnering with the Rochester Institute of Technology, which is responsible for calibrating thermal infrared data from NASA’s Landsat program, to ensure data accuracy.

Establishing partnerships with organizations possessing established government credentials is anticipated to be crucial for Hydrosat’s success in securing government contracts.

Government Contracts and Initial Success

Hydrosat has already been awarded contracts from the European Space Agency and three Small Business Innovation Research (SBIR) contracts with the U.S. Airforce and the Department of Defense.

As part of an Air Force contract, Hydrosat successfully tested a first-generation imager on a high-altitude balloon in New Mexico, demonstrating its ability to collect, process, and accurately calibrate thermal infrared imagery.

Commercial Sector Engagement

Hydrosat is also actively pursuing opportunities within the commercial sector. Fossel indicated that the startup has already secured agreements with companies in the agricultural and environmental industries, though specific details were not disclosed.

Long-Term Vision and Data Frequency

While a long-term goal involves deploying a 16-satellite constellation, Fossel emphasized that the frequency of data delivery is more important than the constellation’s size.

The company’s midterm objective is to achieve daily thermal infrared imagery coverage across the globe. “The constellation size is simply a means to enable this level of data delivery,” Fossel clarified.

Investment Details

This funding round was spearheaded by OTB Ventures, with participation from Freeflow Ventures, Cultivation Capital, Santa Barbara Venture Partners, and Expon Capital.