A rendering of Sierra Space’s Velocity satellite bus
Photo credit: Sierra Space
Sierra Space is expanding its satellite offering as it prepares for the maiden flight of its spaceplane and an IPO as early as next year.
Ahead of the highly anticipated solar eclipse, the commercial space unicorn unveiled its aptly named Eclipse line of satellite buses – the main structures of satellites – designed to cover a wide range of missions in orbits from low-Earth to cis-lunar orbit.
“We actually waited six months, so that’s what it is [name]“We’ve really thought about it,” Sierra Space CEO Tom Vice said in an interview on CNBC’s “Manifest Space” podcast. “I think the name is very appropriate because I think it will change everything in terms of the affordability of building the next generation buses for the next generation satellites.
Sierra Space, valued at $5.3 billion as of September, was spun off from defense contractor Sierra Nevada Corporation three years ago. The independent subsidiary, which has three decades of experience in space travel, is the result of an ambitious early bet by billionaire couple SNC, Fatih and Eren Ozmen.
Sierra Space offers a diverse portfolio of space and defense technologies, including space transportation, space habitation, propulsion and satellites. It is perhaps best known for its NASA-commissioned Dream Chaser reusable spaceplane, which will conduct cargo resupply missions to the International Space Station and eventually carry people into orbit and back.
The company is also working with Jeff Bezos’ Blue Origin on a commercial space station called Orbital Reef and in January won a high-profile $740 million Pentagon contract to develop a constellation of missile tracking satellites for the United States
The Eclipse offerings move the company further into the spacecraft subsystems business.
As for Dream Chaser, Vice said it was “very confident” that its first flight would take place in the fourth quarter of this year. He added that the spaceplane passed the first phase of environmental testing in March and said since it will carry cargo to the ISS in this first demonstration, the company is relying on NASA’s manifesto and working with the FAA to obtain a re-entry license to obtain.
Artist’s impression of Sierra Space’s Dream Chaser spaceplane in this undated handout dated March 25, 2022.
Sierra Space | via Reuters
“Dream Chaser is also a vehicle that can spend a year in orbit and serve as an orbiting space station for microgravity research,” Vice said, talking about the research, development and manufacturing opportunities he and the company are betting on will be realized in near-Earth orbit. Providing business models for the spaceplane and its space habitats.
Sierra Space has identified four segments that it believes microgravity can help disrupt industries on Earth: stem cells, oncology, vaccines and industrial glass. These markets collectively totaled $900 billion in 2022, according to Vice, and are growing rapidly to reach about $3.7 trillion by 2038.
“There are some things you can do that are fundamentally different in terms of protein crystallization that we know actually make better drugs. So we think this is actually a huge market for us,” he said.
Sierra’s near-term focus is on completing a Series B round of funding to raise capital for potential acquisitions, getting Dream Chaser flying, and getting its financials into a strong position ahead of a potential IPO as early as next year.
“We will start to look at this as an option and base the decision on what the markets look like,” Vice said. “But I think we are evolving very quickly into a company that has seen significant revenue growth.”
According to Vice, Sierra’s sales are expected to double in 2024. The backlog currently stands at over $4 billion and the company is working to achieve positive cash flow.
After significant layoffs in November, Sierra Space plans to double its workforce again this year.
While the company has received offers to go public through a special purpose acquisition company (SPAC), it plans to initiate a traditional IPO process.
“We are a company that is thinking a lot about ushering in the most profound industrial revolution in human history,” Vice said.
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2024-04-10 19:37:38
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