In 2010, then-President Barack Obama instructed NASA to provide grants to private companies to let them develop spacecraft. This shift in space policy from government-controlled has created a flurry of massive opportunity for the private sector to fully get involved in space aviation for the first time without NASA involvement. In the subsequent years, satellites have become more accessible and fueled an entirely new segment that services the growing and varying needs of satellite operators and deployers. Apex is a manufacturer of satellite buses, the main body and structural component of any spacecraft. The bus contains the payload and technical instrumentation, similar to a fuselage on a plane. Founded by an ex-Palantir executive, the LA-based company integrates software with hardware to streamline the manufacturing process, bringing delivery down to months instead of years. Apex will launch its first satellite bus early next year delivering payloads for three customers including a Tier-1 defense contractor. This funding will allow the company to open a new 50,000-square-foot manufacturing facility that will allow them to scale its capacity to meet the ever-growing demand from both the government and private sector.
LA TechWatch caught up with Apex CEO Ian Cinnamon to learn more about the business, the company’s strategic plans, latest round of funding, which brings the company;’s total funding raised to $27M,, and much, much more…
Who were your investors and how much did you raise?
We raised $16M in this Series A round, co-led by Andreessen Horowitz and Shield Capital.
Tell us about your product or service.
Apex manufactures satellite buses, which is the core part of any spacecraft. Traditional satellite buses are made from scratch for each mission, but Apex productizes them into set offering. Apex is able to deliver its satellite buses in a matter of months, not years, helping alleviate the largest bottleneck in the space industry.
What inspired the start of Apex?
Previously, I worked at Palantir where I had the chance to firsthand see satellite operators complain about the lack of readily available buses. I come from a software background, but I’ve always loved aerospace, and I realized the combination of both hardware with software enabled us to build satellite buses in a scalable way.
How is it different?
Most satellite buses are custom-built and take years to manufacture. As set products, Apex buses are delivered in a matter of months… and eventually, weeks.
What market you are targeting and how big is it?
Apex sells to both commercial and government markets. Today’s satellite bus market is over $30B, and we see it growing to over $100B in the coming years.
What’s your business model?
We are radically transparent with our pricing—in fact you can configure a bus and see the lead time and pricing right on our website.
How are you preparing for a potential economic slowdown?
The space economy is in a unique position despite an economic slowdown—across both commercial and government sectors, the demand continues to increase.
What was the funding process like?
Today’s funding environment is admittedly tough. Investors are looking for a fast pace of work, real unit economics, and proof of customer demand. We’re lucky to have all of that at Apex.
What are the biggest challenges that you faced while raising capital?
Educating the investment industry on what a satellite bus is! Unless you’re in aerospace, it’s not something one readily thinks of. We are lucky to have picked investors, however, who deeply understand the space and didn’t need to be taught.
What factors about your business led your investors to write the check?
It all comes down to pace of execution, ability to hit our milestones, and customer traction.
What are the milestones you plan to achieve in the next six months?
Our core focus is on ramping up production of our satellite buses ahead of our first launch on SpaceX’s Transporter 10.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Focus on building a real business with strong customer demand. Take control of your own destiny.
Where do you see the company going now over the near term?
We see ourselves becoming the largest manufacturer of spacecraft platforms in the galaxy—not just Earth!
What is your favorite restaurant in LA?
I love the frozen yogurt at the Beverly Glen Deli.
