Near Space Labs Secures $20M for Stratospheric Imaging Robots

A Novel Approach to High-Resolution Earth Imaging

Conventional methods for capturing images of Earth from an elevated perspective typically involve satellites, drones, airplanes, or spacecraft. However, Near Space Labs is pioneering a distinct strategy for acquiring high-resolution imagery from the upper atmosphere.

Swift Aircraft and Stratospheric Flight

Near Space Labs is developing aircraft, known as Swift, which are lifted into the air using helium balloons. These aircraft then utilize prevailing air currents for navigation, enabling them to capture images from the stratosphere before descending back to Earth. Following substantial customer engagement with its imagery, the company has secured $20 million in funding to facilitate expansion.

Series B Funding and Investors

This Series B funding round is being spearheaded by Bold Capital Partners, a venture capital firm established by Peter Diamandis, renowned for his work with XPRIZE and Singularity University. USAA, a strategic investor, is also participating, alongside Climate Capital, Gaingels, RiverPark Ventures, and existing investors including Crosslink Capital, Third Sphere, and Draper Associates. To date, Near Space Labs has raised over $40 million, including a $13 million Series A round in 2021.

The Founding Team

The startup was founded by Rema Matevosyan (CEO), Ignasi Lluch (CTO), and Albert Caubet (chief engineer). Prior to establishing the company, all three individuals gained experience in space and physics technology research.

Founders' Backgrounds and Inspiration

Rema Matevosyan, of Armenian heritage, grew up in a family deeply immersed in technical fields such as physics, programming, and astronomy. After completing her undergraduate studies in mathematics in Yerevan, she pursued graduate education in Moscow. It was at the Skolkovo Institute that she first connected with Ignasi Lluch, who had traveled from Spain to study there.

The Skolkovo Institute and Urban-X Accelerator

Both Matevosyan and Lluch were attracted to the Skolkovo Institute, which was then considered the equivalent of MIT in Russia, owing to a collaborative venture with the Massachusetts Institute of Technology. This connection led the trio to apply to the Urban-X accelerator program in New York. Matevosyan embraced life in the U.S. and now directs the company’s operations from there.

A Metaphor for Perspective

The concept of Near Space – operating at a high altitude to gain a broader perspective – mirrors the founders’ own journey and outlook.

Geopolitical Shifts and Continued Growth

The partnership between the Skolkovo Institute and MIT concluded in February 2022, a consequence of the sanctions imposed on Russia following the invasion of Ukraine. Similarly, the Urban-X accelerator was discontinued by its primary sponsor, BMW, earlier this year. Despite these changes, Near Space Labs continues to thrive and expand.

Key Customer Segment: The Insurance Industry

Matevosyan highlighted the insurance industry as a significant customer base, utilizing Near Space’s imagery to assess and understand the effects of large-scale disasters, such as wildfires and hurricanes. (USAA is a prominent insurer and financial services provider, serving members of the military, veterans, and their families.)

Scalability and Coverage Plans

Currently, Near Space’s coverage is limited to specific regions within the U.S., but the company intends to broaden its reach. Matevosyan explained that scaling is relatively straightforward, as the Swift aircraft require no special flight licenses; they are propelled by balloons, rely on wind currents, and operate unmanned within the stratosphere.

Imagery Resolution and Efficiency

The company’s goal is to provide coverage of 80% of the U.S. population twice annually with 7 cm resolution imagery. Near Space Labs asserts that it can accomplish tasks in hours that would take approximately 800,000 drones days or weeks to complete.

Customized Solutions and New Markets

Near Space Labs is also developing tailored coverage plans to meet the specific needs of its customers. While the current user base is primarily within the insurance sector, the new funding will support exploration of opportunities in other industries.

Potential in Agriculture

Matevosyan identified agriculture as a promising area for expansion. Many farms have experimented with drones to monitor crop health, but these efforts have faced scalability challenges due to accuracy limitations. “Drones were taking small samplings and extrapolating, [but] that really didn’t take off, because if a chunk of land is not healthy, that doesn’t necessarily mean that the rest of the farm is unhealthy.” Satellite imagery often lacks the necessary resolution for cost-effective use by potential customers.

Military Applications and Future Direction

Although military applications represent a logical use case, Near Space Labs has not yet actively pursued this avenue. Matevosyan characterizes the Swift aircraft as “dual use,” capable of carrying a limited payload. However, the company remains focused on commercial applications for the time being.

Versatility and Investment Appeal

Considering global trends and the geopolitical landscape, it will be interesting to observe whether this strategy will continue. The technology’s versatility and cost-effectiveness are key factors driving investor interest.

Investor Perspective

“The concept of low-cost aerial imagery is valuable for many parties, not just insurance,” stated Will Borthwick, principal at Bold Capital Partners, who led the investment. “Even when you think about the advent of AI, which requires timely and high-quality data to work properly, it’s the moment in time for something like this.”