Orbion Raises $20M Series B to Advance In-Space Plasma Propulsion

Orbion Space Technology Secures $20 Million in Series B Funding

Orbion Space Technology, a developer of electric propulsion systems, has successfully completed a $20 million Series B funding round. The company intends to utilize these funds to expand its production capabilities for the Aurora propulsion system.

Hall Effect Thrusters for Small Satellites

Based in Michigan, Orbion specializes in the manufacture of Hall effect plasma thrusters. These thrusters are designed for integration into small and CubeSat satellites. They are crucial for maintaining a satellite’s orbit, performing collision avoidance maneuvers, and facilitating controlled de-orbiting at the end of its operational lifespan.

Hall thrusters function by employing a magnetic field to ionize a propellant, ultimately generating plasma. While established in space applications, these thrusters have historically been prohibitively expensive for operators of smaller satellites.

Vertically Integrated Manufacturing

Orbion asserts that it has developed a cost-effective manufacturing process to address the increasing demand from startups and developers targeting low-Earth orbit. CEO Brad King stated the company evaluated outsourcing options but opted for a vertically integrated manufacturing approach.

The company’s current manufacturing facilities are now insufficient to meet demand. King reported that Orbion is experiencing “unprecedented market demand” for its Aurora system.

Growth in the New Space Economy

The surge in demand aligns with the expansion of the “new space economy.” This growth is fueled by reduced costs associated with processors, components, and launch services, leading to a corresponding increase in the need for efficient in-space propulsion.

Previous Funding and Partnerships

Prior to this round, Orbion secured $9.2 million in Series A funding in August 2019. Subsequently, the company established a research collaboration with the U.S. Department of Defense, focused on evaluating the resilience of U.S. space assets.

Furthermore, Orbion secured a contract with Blue Canyon Technologies, a satellite manufacturer, in September of the previous year.

Investment Details

This latest funding round was spearheaded by U.S.-India venture capital firm Inventus Capital Partners. Additional investors included Material Impact, Beringea, and Wakestream Ventures.

The Changing Space Landscape

Kanwal Rekhi, an investor at Inventus Capital Partners, commented on the evolving space industry. He noted a shift from large satellites to a greater number of nanosatellites, drawing a parallel to the transition from mainframes to personal computers.

Rekhi emphasized that Orbion provides these nanosatellites with the capability to achieve and maintain more precise orbits for extended durations.