Investing in Astranis Space | How to Buy Pre-IPO Shares

Astranis Space is a satellite manufacturer that provides reliable and secure service to major enterprises, governments, and institutional clientele. The company’s unique business model and proprietary technology have helped to drive profits and interest in the firm. Today, Astranis Space is one of the top satellite communication service providers with contracts that extend across the commercial, government, and military sectors. Demand for Astranis Space products continues to rise alongside its growing number of satellite services.

Despite the company’s speedy growth and reputation, there have been no public announcements regarding an IPO. As such, the company remains privately held and operated. Those seeking to acquire Astranis shares can’t go to traditional brokers. Instead, they will need to navigate the secondary markets to accomplish the task. Here’s what you need to know.

What is Astranis Space?

Astranis Space launched in 2015 to democratize space communications. The company’s headquarters is located in San Francisco, providing direct access to some of the nation’s top tech firms. Its founders, John Gedmark and Ryan McLinko, recognized the growing demand for commercial satellite communication options.

They understood that the neighboring tech firms would require dedicated satellite services as they expanded. To meet these needs, the company launched its MicroGEO satellite campaigns. These satellites differed from the competition in many ways.

For one, MicroGEO satellites have a much smaller form factor. Additionally, they are fitted with the latest telecommunications hardware and digital processing software, enabling them to provide service on par with much more expensive and larger units.

High Orbit Satellites

One of the main advantages of the MicroGEO (Geostationary orbit) satellites is that they operate in a high orbit. High orbit provides significant advantages over low orbit in terms of service and monitoring capabilities. This strategy reduces the number of satellites needed to complete mission-critical tasks like providing uninterrupted service to remote regions.

A B2B Model that Works

Notably, Astranis Space has a B2B model that ensures they don’t compete with their customers for satellite clientele. Specifically, the company doesn’t offer bandwidth directly to clients. Additionally, their services only require a minimum up-front payment to get started, and there are multiple ownership options to consider.

Communications

In terms of communication capabilities, Astranis Space satellites offer top-notch support and data delivery. Users can lease MHz for data transmission or end-to-end service features that enable clients to communicate directly with their customers globally.

Prime

In 2023, Astranis Space launched its first commercially available Prime satellite, dubbed Arcturus. The device features Ka-band communication capabilities from a compact and controllable platform. Notably, the company currently has four Prime satellites in orbit with six more slated for launch in the coming months.

UtilitySat

The following year, Astranis Space unveiled its UtilitySat unit. These devices added enhanced capabilities and maneuverability to their product line. Notably, they were the first multi-mission commercial GEO satellites to integrate direct propulsion into their core offerings.

Source – Astranis

There’s currently one UtilitySat in orbit, but the company plans to launch several more in the coming months. These devices will provide crucial service for disaster recovery, tech demos, and data transmission tasks. Impressively, they feature multiple bands, including Ku, Ka, and Q/V, enabling communication on a new level for clients.

Omega

Omega will be Astranis Space’s most advantageous product yet. Slated for a 2026 launch, the device will feature broadband communications systems capable of delivering  50+ Gbps of dedicated data to remote regions globally. The device will accomplish this task from a reduced form factor, delivering more maneuverability.

Military Pivot

Astranis Space has become a core provider of military communications support. Its GEO satellites offer secure bandwidth for defense operations, with built-in protection against jamming, spoofing, and kinetic threats.

Taiwan

Recently, Astranis and Chunghwa Telecom announced a strategic partnership designed to help Taiwan achieve telecommunications independence from China. As part of this strategy, the company will build and operate several high-level communications satellites for Taiwan.

Historical Funding Rounds

Summary of Astranis Space Funding:

Total Funding: Astranis Space secured $753M across 12 funding rounds.

Largest Round: Astranis Space’s largest funding round secured $281M in March 2021.

Investors: A total of 52 institutional investors and 3 Angel investors back Astranis Space.

Latest Round: The latest funding round raised $200M and was a Series D round held on Jul 24, 2024.

Funding Rounds Breakdown:

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Key Investors:

Astranis Space secured support from several well known providers including Andreessen Horowitz, BAM Elevate, BlackRock, Fidelity Investments, Baillie Gifford, Y Combinator, Friends & Family Capital, Haystack, Metaplanet, Garage Capital, SV Angel, Refactor Capital, Trinity Capital, Monashee Investment Management, Uncorrelated Ventures, Venrock, Fifty Years, Harpoon, Industry Ventures, Indicator Fund, AME Cloud Ventures, Rising Tide Fund, Soma Capital, Koch Disruptive Technologies, ACE Ventures, Trinity Capital, Monashee Investment Management, Uncorrelated Ventures, Venrock, Fifty Years, Harpoon, Industry Ventures, Indicator Fund, AME Cloud Ventures, Rising Tide Fund, Soma Capital, Koch Disruptive Technologies, ACE Ventures, TriplePoint Capital, and Lux Capital.

Why Invest in Astranis Space?

There are many reasons why investing in Astranis Space is a smart move. For one, there has been an increased demand for its services. Most modern aircraft, trains, or boats need reliable, low-cost connectivity in order to operate smoothly. Astranis Space provides direct satellite communications, enabling these units to stay connected no matter how far away they travel.

Full Service Provider

Astranis Space is a full-service provider and manufacturer of satellites. The company handles all aspects of the construction and operation. As such, Astranis Space also operates a network of satellite gateway antennas and network hubs designed to secure uninterrupted communications.

Removes Technical Boundaries

Another major plus for Astranis Space clientele is that they don’t have to worry about the technical or operational aspects of satellite use. Maintaining, operating, and launching satellite systems can cost billions. Thankfully, Astranis Space provides direct access to these powerful tools without requiring clients to undergo any technical requirements.

Astranis Space Leads the Pack

Astranis Space is a highly competitive satellite service provider. The company currently ranks 5th among 265 active competitors. It has +10 satellites in orbit with plans to launch many more in the next year. Impressively, these devices have already delivered +$1B in services to clients.

Innovative Approach

It’s vital to mention how Astranis Space’s innovations have helped to push high-orbit technology forward. Before the company’s MicroGEO satellite brand, there were only two options. Companies had to select between small, low-orbit satellites that were limited in their features or super-expensive megasats.

Global Internet Accessibility

One of the main reasons why Astranis Space has garnered so much attention is that it helps bridge the communication gap between the developing world and other nations. There are many rural areas and indigenous communities that still lack access to the internet. Astranis Space helps to eliminate infrastructure limitations, providing fast data transmission anywhere globally.

Security is Priority 1

Security is a primary concern for Astranis Space technicians. The company currently holds several government contracts. As such, it ensures that its system offers complete, end-to-end visibility and control, preventing jamming, spoofing, or hacking from adversaries or competitors.

Astranis Space Secures Military Contracts

One of the main reasons why investors continue to flock towards Astranis Space is that it secures military contracts. The company’s Nexus satellite system was built to support the emerging Space Force. It offers top-notch GPS tracking and data transmission options designed to enable US military personnel to stay connected.

Funding and Investor data sourced from Tracxn

1. Pre-IPO Secondary Marketplace

Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, who are crucial to the company’s pre-IPO growth.

Investing in pre-IPO shares of Astranis Space could offer strong returns if the company’s valuation increases following its IPO. It’s common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.

Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:

Eligibility: This approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify for access.

2. Private Equity Firms

Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.

3. Employee Equity Sales

Many consider employee equity sales as the best way to acquire pre-IPO shares in Astranis Space. This method of acquiring pre-IPO shares requires you to connect with former employees. It’s common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has become more popular, leading to more pre-IPO share opportunities for investors.

Private Transactions: There are a lot of hoops you will need to jump through to complete a private pre-IPO transaction, including creating specific legal agreements, conducting valuations, and setting in place any limitations on the transfer of the asset.

Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.

There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:

Liquidity Risk

If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option.

These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO’s completion, are met. It’s even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.

Finding a Broker

If you meet the requirements and are comfortable with the risks, several platforms offer access to pre-IPO opportunities:

Forge Global: One of the largest private stock marketplaces, offering shares in late-stage startups like SpaceX, Stripe, and Databricks. Minimums typically start around $100,000.

EquityZen: A popular platform allowing accredited investors to buy into private companies with minimums as low as $5,000. Past offerings include companies like Discord and UiPath.

Rainmaker Securities: A full-service broker that helps source and negotiate private share sales, including opportunities in companies like OpenAI, Stripe, and Palantir.

Hiive: A newer platform with live bid/ask pricing for hundreds of private companies. Transparent and low-fee, with minimums starting around $25,000.

MicroVentures: Offers pooled access to late-stage companies through special purpose vehicles (SPVs), including past investments in SpaceX and Instacart.

EquityBee: Allows investors to fund employee stock option exercises at startups, often at discounted valuations, with minimums around $10,000.

Augment: A digital-first marketplace showing real-time pricing for pre-IPO shares, targeting tech-savvy investors and offering lower transaction fees.

StartEngine Private: Launched in late 2023, this platform offers accredited investors access to Regulation D offerings in later-stage, venture-backed companies. In its first nine months, it generated $16.5 million in revenue, with average investments of around $32,000

Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.

Valuation of Astranis Space and Future IPO

Astranis Space qualified for Unicorn status after securing a valuation of $1.6B on Apr 19, 2023. The company managed to secure this value despite only having around 300 employees. Its combination of unique products, reliable service, and reputable security all helped to expand its positioning.

Today, Astranis Space is one of the most respected names in telecommunications. Its products continue to expand on satellite capabilities while reducing their overall costs and form factors. Additionally, its unique satellite as a service business model allows more users to leverage these devices to improve their communications.

Those holding Astranis Space shares hope to capitalize on the company’s recent partnerships and positioning. They see the growing demand for its products and believe that these factors will drive share prices up in the coming months.

Investing in Astranis Space Pre-IPO | Conclusion

Holding Astranis Space Pre-IPO shares opens the door for future opportunities. The company hasn’t let off its innovative drive and remains a go-to option for militaries and larger enterprise clientele. If it succeeds in its goal to democratize space, it could translate into increased share prices.

However, you should always consult a financial professional before making any Pre-IPO investments. There’s no guarantee that a company will go public or that it will conduct business at the same level of success after announcing an IPO.

Additionally, there are several restrictions that Pre-IPO shares possess that you must consider.  For those who completed their research and can qualify for Astranis Space Pre-IPO shares, there is significant room for growth.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.