Space Startup Merger Creates Next-Gen Telescopes

A Serendipitous Alignment for Space Observational Technology

In Michigan, during a pleasant evening in spring, an unexpected opportunity arose for Upfront Ventures partner Nick Kim.

He had recently spearheaded a $9.5 million seed funding round for OurSky, a platform dedicated to space observational data, and was keen to assess the capabilities of their telescope partner, PlaneWave Instruments.

Initial Challenges Highlighted a Key Need

However, the initial demonstration at PlaneWave’s facility proved to be a lengthy process. Obtaining the first image required several hours of effort.

Kim noted that the PlaneWave team, despite being telescope manufacturers, relied on a combination of readily available, open-source software. This realization sparked a crucial insight.

The Genesis of Observable Space

Rather than frustration, Kim felt a sense of validation. “This underscored the very reason OurSky was created,” he reflected in a conversation with TechCrunch.

He recognized a perfect synergy between the two companies, ultimately leading to a merger and the formation of Observable Space.

A Unified Vision for Enhanced Accessibility

Dan Roelker, founder of OurSky, and Richard Hedrick, founder of PlaneWave, jointly assert that this consolidation will streamline telescope operation. They anticipate expanded market reach, particularly given their unique position as a U.S.-based telescope manufacturer.

Their existing clientele already includes prominent organizations such as NASA, the U.S. Space Force, and Georgia State University’s Center for High Angular Resolution Astronomy.

Seamless Integration as a Core Principle

Hedrick explained his vision: to fully integrate all telescope components, including those not directly sold by PlaneWave, and to centralize telescope control. He emphasized the natural fit of collaboration.

Roelker, formerly VP of Software Engineering at SpaceX from 2015 to 2019, described the current user experience as burdened by complex integration issues. The combined strengths of PlaneWave’s hardware and OurSky’s software aim to resolve these challenges.

Expanding the Market Through Innovation

Observable Space intends to capitalize on this integration to broaden the market for space observation. The OurSky platform will continue to operate under its current name, while PlaneWave telescopes will retain their branding.

This expansion could involve enabling users to access multiple telescopes, either at a single location or globally, effectively replicating the power of a larger instrument. Furthermore, the company plans to explore laser-based space communication, all while reducing costs.

Making Advanced Technology More Accessible

Hedrick was particularly motivated by the potential to maximize the value of his high-quality telescopes, making the technology more accessible to both amateur enthusiasts and research institutions.

He recounted an instance where an institution opted to have telescopes custom-built by another vendor, expressing regret that Observable Space hadn’t existed at the time.

Emerging Opportunities in the Space Industry

A reduction in the expenses associated with reaching orbit is facilitating increased participation from numerous companies in space-based ventures, as stated by Roelker. Consequently, the need for capabilities related to the identification and monitoring of Earth-orbiting objects, spacecraft communication, and support for defense and intelligence operations is growing.

Observable Space's Potential

Observable Space is positioned to become a significant contributor within this evolving economic landscape, according to Mislav Tolusic, managing partner at Marlinspike, a venture fund specializing in dual-use technologies, who has invested in the company.

“Our daily lives are increasingly reliant on space-based technologies,” Tolusic remarked in a recent interview. “The disruption of GPS constellations would have severe economic repercussions. It’s a critically important infrastructure, and future dependence will only intensify.”

PlaneWave's Manufacturing Advantage

Tolusic highlighted the superior quality of PlaneWave’s products and emphasized that Hedrick successfully developed the company during a period when the vast majority of telescope manufacturing had moved overseas – a factor he considers to be a strategic benefit.

“Replicating this capability within the U.S. necessitates expertise in the production of precision lenses and gimbals, extending beyond design to encompass large-scale manufacturing,” he explained.

Synergies of OurSky and PlaneWave

Jordan Noone, general partner at Embedded Ventures, detailed the rationale behind his fund’s investment, citing a specific illustration of the combined capabilities of OurSky and PlaneWave.

Prior to the merger, Noone attended a demonstration at Mount Wilson Observatory in Los Angeles, showcasing the integrated functionality of the companies’ offerings.

He shared with TechCrunch that the teams responded to an observation request from OurSky’s platform, where a satellite operator had experienced a loss of radio communication with its spacecraft. The teams were able to pinpoint the satellite’s location efficiently.

This experience proved more seamless than a previous demonstration and solidified Noone’s confidence in Observable Space’s potential.

The Power of Integrated Platforms

“Many of the world’s most successful companies, such as Apple and Nvidia, operate as integrated hardware and software platforms,” Noone noted. “While companies focusing on either hardware or software can achieve substantial value, the combination of both is particularly potent in the current technological environment.”

Star Wars or Star Trek?

Observable Space currently employs approximately 100 individuals. Manufacturing processes are still based in Michigan, while certain engineering functions are located in Los Angeles, California.

Additionally, the company maintains an observatory facility situated near Washington, D.C.

The newly formed entity is already producing revenue and has successfully secured $11 million in funding. This includes investment from In-Q-Tel, which serves as the CIA’s non-profit venture capital arm.

Hedrick and Roelker have noted the seamless integration of the two companies. This is attributed to their initial focus on distinct business areas and limited pre-existing administrative infrastructure.

“The merger process itself proved to be incredibly insightful,” Roelker explained. “It highlighted potential challenges and provided a clear understanding of future collaboration.”

Both Hedrick and Roelker expressed confidence in their ability to work together, having navigated difficult situations during the integration.

When questioned about these challenges, Hedrick offered a lighthearted response: “A key decision involved determining whether the company’s ethos would align with Star Wars or Star Trek.”

The ultimate resolution?

“Battlestar Galactica,” Roelker stated.