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Satellogic recorded $0 revenue last year, and the firm anticipates that it would change this situation with new deals producing profits.
Argentine satellite company Satellogic is planning to go public through a merger with Cantor Fitzgerald special purpose acquisition company (SPAC), CF Acquisition Corp. V (NASDAQ: CFV). Acquisition Corp. V is sponsored by Cantor Fitzgerald and is one of many SPAC ventures to partner with space companies on their public debut.
Satellogic Set to Go Public through a SPAC Deal
The announcement on Tuesday puts the deal, which should close in Q4, at a valuation of $1.1 billion. Satellogic aims to have a cash balance of about $275 million through capital raised by CFV and a $100 million private investment in public equity. SoftBank (OTC: SFTBF) and Cantor Fitzgerald are the private investors leading Satellogic’s $100 million private equity.
SPACs raise funds in initial public offerings and use the proceeds to acquire private firms and take them public. Upon a successful public debut, Satellogic will become the latest space company to go public through a SPAC deal.
Thus far, Satellogic has 17 satellites in orbit. Still, it is nowhere near the number needed to bring in the projected annual revenue. It is set to be about $800 million in four years. The company seeks to increase its constellation to over 300 satellites to provide sub-meter resolution of the earth’s imagery with its frequency updating daily. Since its inception in 2010, Satellogic has secured more than $100 million in venture capital and debt.
Apart from going public through a SPAC, the space company is working towards mapping the entire planet weekly by 2023 and daily by 2025. In addition, Satellogic endeavors to have dealings in “over 40 billion” worth of opportunities in the satellite marketspace.
Satellogic Sees Zero Revenue in 2020
Notably, Satellogic recorded $0 revenue last year, and the firm anticipates that it would change this situation with new deals producing profits. It has an accumulation of around $38 million worth of deals. Additionally, the company expects a “near-term pipeline” of $800 million in opportunities in the next couple of years, as reported by an investor side deck.
Speaking more on the company’s plan, Satellogic CEO Emiliano Kargieman stated:
“We’re going to grow the full [satellite] constellation by 2025 to 300 satellites, to get daily remaps of the entire planet, we think that’s really going to change the way companies make decisions everyday.”
In addition, the company’s current NuSat satellite captures images at 70 centimeters per pixel. Also, it has the ability to cover $300,000 square kilometers of the earth in a day. Satellogic has reportedly signed a multi-launch deal with SpaceX earlier in the year. The multi-launch deal is to launch the remaining of the 300 satellites for its “Aleph” constellation.
Although requests from defense and intelligence agencies, applications from energy, insurance, agriculture, and forestry are growing to dominate the earth imagery market space. According to a report by space research firm Euroconsult, estimates satellite imagery addressable market $140 billion.
“We think this is a winner takes most or winner takes all market. This is a supply limited market- governments can’t get enough data today; there’s not enough satellites out there,” the company stated.
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