Canberra-based satellite maker Skykraft raises $120 million

A space technology company based in Canberra has locked in one of the largest startup funding deals in Australia this year, securing $120 million from investors to fuel its mission to disrupt air traffic management.

Founded in 2017, Skykraft designs and produces small satellites that can be used to improve the way air traffic control and aircraft communicate with each other.

The tech company has already launched 10 such satellites this year, and plans to launch more throughout in 2024 to complete in-orbit training. In 2025, it plans to deploy its initial constellation of hundreds of satellites in low-earth orbit.

While the company said in a statement it has raised more than $100 million in the planned funding round, The Australian Financial Review has put the figure at $120 million.

Skykraft CEO Dr Michael Frater said the company’s space-based air traffic management capabilities “will deliver on a clearly identified need in the global aviation sector”.

“Our partners share our confidence that Skykraft will be the key player providing the next generation of air traffic management services to the world,” he added.

The significant funding injection comes from Foresight Australia, the local subsidiary of the UK fund manager, Canadian pension fund OPTrust, and CSIRO’s deep tech investment fund, Main Sequence.

“Skykraft is doing truly groundbreaking work that has the potential to transform aviation communications infrastructure,” commented Main Sequence partner Martin Duursma.

“Their expertise in designing, building and operating satellite constellations enables them to provide global services that replace legacy systems. By reinventing transport infrastructure from the ground up using space-based platforms, they can increase air safety and address the gaps in surveillance and communications over oceans and remote regions.”

“As investors focused on how space innovation benefits society on Earth, we at Main Sequence are thrilled to support Skykraft as they develop this new infrastructure to connect aircraft anywhere in the world.”

Australia’s burgeoning space-tech sector

Skykraft is far from the only space tech startup to secure funding from Main Sequence, which points to the growth in the sector in Australia.

Main Sequence has also backed Queensland-based Gilmour Space Technologies, which to date has raised $87 million; Myriota, which has raised $50 million since launching in 2015, and Quasar Satellite Technologies, which raised $6 million in March.

The CSIRO fund is also an investor in carbon capture startup Loam Bio, which secured one of the year’s other highest funding rounds, raising $105 million in February.

Skykraft’s raise this week is the second highest of the year, coming in behind Saluda Medical’s $150 million in April.