An artist’s illustration of a satellite connection in orbit above Earth.
spider hawk
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Overview: The Digital Orbital Threat
Companies and governments are now launching thousands of satellites each year, and this changing landscape brings with it the emerging challenge of cyber security in space. Imagine, scores of sensitive data, some national security, constantly flowing between Earth and remote instruments miles above the surface.
The concept of space security arguably isn’t talked about enough, but a quick search for things like “cyber,” “space,” and “the Pentagon” will give you an instant sense of how US military leaders view digital threats to satellites. How do you see
SpiderOak, which has been in the “terrestrial” cyber security game for quite some time, wants to change that. The company raised $16.4 million in an oversubscribed round to fully focus on building out its space business.
The fundraising was led by Empyrean Technology Solutions — which SpiderOak notes is backed by funding through Chicago-based private equity firm Madison Dearborn Partners — and joined by Method Capital and OCA Ventures.
“It’s very difficult to secure networks in space, because as satellites move around, you have periods of time where they’re out of touch with anyone else,” Charles Beames, SpiderOak’s chairman, told me.
Through its software, SpiderOak encrypts data so that it can safely flow from one company’s ground station to another’s spacecraft.
“Cybersecurity is a big problem… three or four star generals talk about how it’s the soft underbelly — that’s really the thing they’re most concerned about, the Space Force’s vulnerability in terms of Biggest problem. It’s not a satellite. It’s being shot out of the sky,” Beams said.
The Beams have been around for as long as the money side of the industry. His career has ranged from leading the Pentagon’s space and intelligence acquisitions to serving as president of the late Paul Allen’s Vulcan Aerospace and then-executive chairman of spacecraft maker York Space.
While SpiderOak was founded in 2006, and currently boasts approximately 75,000 individual customer accounts, the company has raised minimal outside funding with only $25 million prior to this new round. It entered the space market in late 2019 and Beams stepped down as chairman early last year.
SpiderOak has completed a demonstration of its OrbitSecure product in a lab-based simulation, and has secured a small initial contract from the Air Force to prove the technology. Beams noted that defense giants such as Raytheon, Lockheed Martin and Northrop Grumman have contracts with SpiderOak and are also testing it.
Next up: demonstrating its technology with a satellite in orbit, on a mission scheduled to launch in the first half of this year — while SpiderOak builds out its Reston, Virginia headquarters and gets OrbitSecure 2.0 out and rolling.
Correction: SpiderOak’s customer base is approximately 75,000 individual accounts. A version of this newsletter sent to inbox misstated that figure.
What are you saying?
- ABL Space’s inaugural launch fails: Shortly after liftoff, an anomaly in the RS1 rocket caused nine of its engines to shut down, causing the vehicle to return and impact “directly on the launch pad”, resulting in damage. The FAA said in a statement to CNBC on Thursday that there were no reports of injuries and damage to any public property, and that “all debris was contained within the designated danger area.” , cnbc
- SpaceX returns 26th ISS cargo mission, splashed down to complete the flight with the company’s Dragon capsule. , spacex
- Japanese lunar mission completes fifth milestone as flight continues iSpace’s Mission 1 lander is now more than 1.3 million kilometers from Earth as it heads towards the Moon. , ispace
- OneWeb Deploys 40 More Satellites After SpaceX’s Second Launch, expanding the company’s constellation to 542 satellites in orbit. OneWeb has two launches left to complete its first generation constellation. , oneweb
industry maneuvers
- Capella Space Raises $60 Million From Billionaire Thomas Tull’s Fund As a synthetic aperture radar (SAR) satellite imagery company is preparing to launch its next generation of Acadia satellites this year. , cnbc
- European airline airBaltic ties up with SpaceX There are plans to equip the fleet with Starlink, and to start offering free inflight service. , airbaltic
- General Atomics Electromagnetic Systems wins contract from Advanced Space $72 million Air Force Research Laboratory under contract to build a deep-space detection satellite. , spacenews
- NASA appoints AC Charania as Chief Technologist Joe joins after previous roles at Blue Origin and Virgin Galactic. , NASA
- ST Engineering iDirect Appoints Don Clausen as CEO. He comes to the satellite communications company from Intelsat where he was Vice President with a variety of roles. , ST Engineering iDirect
- Retired Air Force three-star general Steven Quast named CEO of Skycorp, a California-based space logistics company. , spacenews
- echostar Fires Senior Vice President and Chief Accounting Officer Muhammad Ali Butt is taking over as interim principle accounting officer, with Jeffrey Boggs of Hughes Network assisting. An EchoStar spokesperson told CNBC that Butt’s termination was “strictly a personnel issue and not the result of any concerns over controls, procedures or financial reporting.” , echostar
- Astranis brings on Doug Abes as Chief Commercial Officer. He joins Viasat after more than seven years, most recently as SVP of Strategy and Corporate Development. , John Gedmark, CEO of Astranis
- Slingshot Aerospace has appointed Thomas Arend as Chief Product Officer. he joins after 18 months astra, most recently as VP and Head of Product Management. , catapult
- Habitat startup Vast Spaces moves headquarters to Long Beach, California, expanding facilities for future growth. , Comprehensive
market movers
- virgin orbit That’s down 20% week to date since its first UK launch, and the sixth to date, to have failed mid-flight. The company has launched an investigation into the cause, as the discrepancy led to early cut-off of the upper stage engine. , cnbc , virgin orbit
on the horizon
- January 14 – SpaceX Falcon Heavy Launching Space Force mission from Florida.
- January 15 – SpaceX Falcon 9 launch Starlink mission from California.