Internet space provider Kepler raises US$92 million

Canadian Kepler Communications Inc. space startup has raised $92 million to expand its growing deployment of small satellites in low Earth orbit that deliver Internet to other objects orbiting the planet.

Previous backer IA Ventures led the deal, which was also backed by shareholders Costanoa Ventures, Canaan Partners, Tribe Capital, BDC Capital’s Industrial Innovation Venture Fund and other investors. Kepler has raised over $200 million to date. The latest funding will bring the Toronto company to profitability, CEO Mina Mitri said in an interview.

Kepler is set to launch its final two nanosatellites, about the size of cereal boxes, this month, bringing it to 21, orbiting about 550 kilometers above Earth. They provide internet connection with other objects in orbit using radio frequencies.

This fall, it will launch two larger satellites, each about the size of a small car, to test and validate optical communications technology that will allow higher-speed data transmission to weather satellites and even the International Space Station. It plans to launch optical data transmission infrastructure and provide optical services to customers by early 2025, launching more satellites to increase service levels and process larger volumes of data, Mr Mitri said.

Tech companies, including space startups, have struggled to raise money since the end of 2021. But Mr Mitri said Kepler had not only increased its valuation, but had been able to raise money without agreeing to the onerous terms that many investors had recently demanded.

“It was a very clean transaction that reflects the strength of the company,” he said.

Kepler made headlines in the fall of 2021 when it applied to the International Telecommunication Union for permission to put a constellation of nearly 115,000 satellites in the sky, joining other launches by SpaceX, Amazon subsidiary Kuiper Systems LLC and Canada’s Telesat. Observers are worried about the messy scene, but also about the chaos in the skies, with collisions that could damage spacecraft, affect communications on Earth and put lives at risk.

Kepler’s plan was to launch only 200 of its own satellites, with the rest reflecting its customers’ plans to launch their fleets into orbit.