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. Morpheus Space is a satellite mobility provider that is reducing the barriers to entry for space and the ongoing costs of space exploration. The company’s core product, Sphere Go, a cutting-edge in-space propulsion system for satellites. The company has also built a complementary suite of software that serve as an operating system to manage the lifecycles and needs of small satellites that include piloting, network management of satellites, hardware as a service, and design support. Morpheus launched in 2018 and has grown the team by 8x since 2020 while supporting a 250% increase in contracts year-over-year.
LA TechWatch caught up with Morpheus Space Cofounder and President Istvan Lorinz to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $29.6M, and much, much more…
Who were your investors and how much did you raise?
The round was led by Alpine Space Ventures, and joined by Morpheus Ventures, and our existing investors – VSquared Ventures, Lavrock Ventures, Airbus Ventures, In-Q-Tel, Pallas Ventures, and Techstars Ventures. It was a $28M Series A.
Tell us about your product or service.
Late last year, we launched our Sphere Ecosystem, which is set to lower the barriers of entry into the space industry through a unique pricing model and cutting-edge tech integrations that would improve the lifecycle of small satellites.
Our premier product is Sphere Go, a revolutionary approach to satellite mobility that combines the most efficient and scalable electric propulsion systems with AI-driven maneuver planning to enable dynamic constellation operations, and avoid potential threats such as space debris.
In support of Go, we utilize four additional products built around the goal of supporting small satellite innovators. We want to make space accessible to a broad audience and move away from having only an exclusive, high-tech circle of people that understand space to a more application-oriented usage of space.
They include:
- SPHERE Direct: A plug-and-play platform agnostic autopilot powered by on-demand use
- SPHERE Flow: Fuses networked satellites into a single, easy-to-manage entity and provides constellation-wide dynamic reconfigurations.
- SPHERE Safe: A cost model that enables on-demand use of active satellite hardware and extra features and hardware-as-a-service (HaaS)
- SPHERE Gateway: An application that drastically shortens the design phase, concurrent engineering efforts and the sales cycle.
What inspired the start of Morpheus Space?
My cofounder, Daniel Bock, and I launched Morpheus Space in 2018 to make space as accessible as possible and provide in-space mobility for everyone.
How is it different?
While there are other companies on the market that make propulsion devices, most use various types of pressurized gas as propellants and require the use of large tanks, valves, and pipes. That means their systems tend to be “bulky” compared to our compact designs. The advantage of our product is that thanks to FEEP technology, each module is a self-sufficient propulsion system, so there is no single point of failure in the propulsion system array.
What market are you targeting and how big is it?
We’re targeting subsystem providers and satellite integrators, designers, and operators, all a part of the new space economy, a market worth roughly 350 billion dollars and growing.
The future of new space is a gold rush. We’re not providing the gold; we’re providing the shovels and pickets. We’re building a foundational platform.
What’s your business model?
- Hardware as a service and mobility as a service
- We’re confident that our technology
- Change space mobility from being high upfront costs to lowering cost of access, reducing risks
- Contribute to the sustainable growth of the space industry.
- Drastically reduces both entrance cost and liability cost.
- Revolutionize in-space mobility by lowering financial and technical barriers of entry to industry.
What was the funding process like?
The funding process was very insightful. We closed the round in a very challenging macro environment. We connected with a lot of different investors who are excited about this industry and what we’re bringing to it. We are confident that we found the right partners for our next phase in this journey.
What are the biggest challenges that you faced while raising capital?
Over the spring and summer, there were changes in the market that stacked against us. Where we are as a business and industry, it was a big challenge fighting the broad headwinds. Credit the team.
What factors about your business led your investors to write the check?
Sound fundamentals, exceptional tech, and a great team. Our investors believed in our confidence that we have the potential to create a great outcome that will change the direction of the industry.
What are the milestones you plan to achieve in the next six months?
Within the next six to 12 months, a portion of our funding will be used to expand staffing across multiple disciplines and levels, with the goal of bringing our final headcount to over 100 people across multiple time zones. Additionally, we will be expanding and improving our manufacturing capabilities, with a new factory in Dresden, Germany.
Within the next six to 12 months, a portion of our funding will be used to expand staffing across multiple disciplines and levels, with the goal of bringing our final headcount to over 100 people across multiple time zones. Additionally, we will be expanding and improving our manufacturing capabilities, with a new factory in Dresden, Germany.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Hang in there. The industry is not as much about competition as it is about survival.
Where do you see the company going now over the near term?
We have big tasks and goals ahead of us, and we’re ready to ramp up production and disrupt the status quo of the space industry.
