ATEL Ventures has announced the completion of an agreement to provide $20M of growth debt to Isar Aerospace, a launch service provider for small and medium-sized satellites.
Founded and headquartered in Munich, Germany, Isar Aerospace is developing Spectrum, a two-stage rocket specifically designed to launch small to medium satellites and satellite constellations into orbit.
Isar Aerospace is building on a high vertical integration and uses advanced technologies and a high degree of automation in its manufacturing, to make access to space more flexible and cost-efficient. The capital provided by ATEL Ventures will enable the company to finance the purchase of state-of-the-art equipment used in the production of its launch vehicles.
Satellites that will be launched by Isar’s Spectrum vehicle have the capacity to bring internet connectivity to rural communities and those in developing countries—currently around one-third of the earth’s population. They can also enable multiple use cases around Earth Observation or Navigation. Such satellites will have a key role in fighting climate change or enabling smart mobility.
Steven Rea, President, ATEL Ventures said: “Satellites have enormous potential to improve access to telecommunication, resource tracking and management, and to help tackle climate change. The satellite market is expected to be worth $1TN by 2040. Launch is the key bottleneck in that revolution and we therefore expect Isar Aerospace to play a major part in it by enabling flexible and cost-efficient access to space.”
David Kownator, Chief Financial Officer, Isar Aerospace said: “Developing a launch vehicle along the approach of vertical integration requires upfront investment in specialist equipment. This agreement with ATEL Ventures is an important component of our financing model, especially as we are starting the construction of a new large-scale manufacturing facility.”
