Satellite Vu Secures $5M Seed Funding for Thermal Imaging Satellites

A Novel Approach to Earth Imaging: Satellite Vu

The field of Earth observation is becoming increasingly competitive, yet Satellite Vu is differentiating itself through a focused approach on infrared and thermal emissions. These data types are vital for both industrial oversight and monitoring the effects of climate change. The company recently completed a successful showing at TechCrunch’s Startup Battlefield and has secured £3.6 million ($5 million) in seed funding, paving the way for its initial satellite launch in 2022.

Core Technology and Strategic Vision

A detailed overview of Satellite Vu’s technology and overall strategy was initially presented in a prior company profile. Essentially, while companies such as Planet have established a strong market for near-real-time Earth surface imagery, certain specialized areas remain largely untapped – notably, thermal imaging.

The Significance of Thermal Data

The heat signature emanating from structures, geological formations, or even gatherings of people represents a highly valuable data point. It can determine whether a commercial building or warehouse is occupied or vacant, and assess the efficiency of its heating or cooling systems. Thermal data can also identify areas of varying temperature that may indicate subsurface water sources, power lines, or other heat-influencing elements.

Furthermore, it’s possible to estimate attendance figures for events like concerts or inaugurations. A key advantage is its functionality even during nighttime hours.

Verification of active components within a power plant is possible through thermal imaging. Image Credits: Satellite Vu

Monitoring Pollution and Industrial Emissions

The ability to readily detect and track pollution and other emissions makes infrared observation a crucial component of any comprehensive plan to monitor industrial activity in relation to climate change. This potential attracted Satellite Vu’s first substantial funding, a £1.4 million grant from the U.K. government as part of a £500 million infrastructure initiative.

Satellite Construction and Funding

CEO and founder Anthony Baker stated that the initial grant facilitated the commencement of their first satellite’s construction, confirming the accuracy of their financial projections. Following this, the company initiated efforts to secure additional capital.

Investment from Seraphim Capital

Seraphim Capital, a venture capital firm specializing in space technology – with a notable investment in synthetic aperture satellite startup ICEYE – matched the grant funds. Subsequent grants have brought the total funding raised to over $5 million, with any surplus allocated as a convertible note.

Strategic Rationale for Investment

“Our interest in Satellite Vu stems from several factors,” explained James Bruegger, managing partner at Seraphim. “Our research last year indicated that over 180 companies are planning to launch smallsat constellations.” However, very few are concentrating on infrared or thermal imaging. “This intrigued us, as we’ve always believed infrared holds significant potential. We were also already familiar with Anthony and Satellite Vu through their participation in our space accelerator program in 2019.”

Financial Requirements and Future Expansion

Substantial funding will be necessary. While the satellites themselves are relatively inexpensive – estimated at $14-15 million each – and only seven are required for global coverage, the total cost will exceed $100 million over the next few years.

Image Credits: Satellite Vu

Seraphim’s Long-Term Vision

Bruegger expressed confidence, stating, “As a specialist space investor, we appreciate the importance of patience.” He added that Satellite Vu exemplifies their investment strategy: supporting early-stage companies through their accelerator and guiding them towards a successful exit.

Securing Commercial Agreements

Baker has already secured potential revenue commitments from prospective customers, approximating the total cost of the project. “Commercial momentum has increased since our last discussion,” Baker noted, referencing his presentation at TechCrunch’s Disrupt 2020 Startup Battlefield.

Letters of Intent and Projected Revenue

The company currently holds 26 letters of intent and other leads, representing an estimated $100 million in potential business, contingent upon their ability to deliver the requested services. To this end, they have been testing future orbital cameras on conventional aircraft, adjusting the output to simulate satellite-derived data.

Bridging the Gap to Operational Satellites

Interested parties can access this simulated data in the interim, facilitating a smooth transition to the “real” product. This approach also establishes a pipeline for Satellite Vu, eliminating the need for a dedicated test satellite and service.

An example of simulated satellite imagery, utilizing the same camera technology planned for orbital deployment, but with resolution adjusted to reflect the distance. Image Credits: Satellite Vu

“Pseudo-Satellite” Data and City-Wide Mapping

“We refer to it as pseudo-satellite data – essentially a minimum viable product,” Baker explained. “We collaborate with companies to ensure compatibility with their required formats.” He continued, “Our next step involves mapping an entire city, such as Glasgow, in thermal detail. We anticipate significant interest in this initiative.”

Positioning for Growth and Future Fundraising

With secured investment, preliminary revenue, and a growing list of potential customers, Satellite Vu appears well-positioned for success, despite its comparatively smaller scale relative to companies like Planet, Starlink, and Amazon’s forthcoming Kuiper project. Following the initial launch, tentatively scheduled for 2022, Baker indicated that only two additional launches would be needed to deploy the remaining six satellites, utilizing a rideshare launch vehicle.

Prior to this, the company anticipates further fundraising efforts, potentially within the next few months, recognizing that substantial capital will still be required to achieve full operational capacity.