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Google spinout Aalyria hits $1.3b valuation after new funding
Google spinout Aalyria, a space-based communications startup, raised US$100 million in a funding round led by Battery Ventures, valuing the company at US$1.3 billion.
Founded in 2022 after Google spun out a project on high-speed networks, Aalyria develops software to improve satellite and terrestrial networks across land, sea, and space.
The funding comes amid increased US government spending on defense technology and national security satellites, with companies like SpaceX’s Starlink securing government contracts.
Aalyria has secured contracts and research funding from organizations including NASA, the US Air Force, and the European Space Agency.
Its software allows satellite constellations to reconfigure automatically during disruptions, and it sells hardware like the laser-communication system Tightbeam for long-distance data transmission.
The company plans to expand its team by at least 30% over the next year.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
Aalyria’s funding may support work tied to a $1 billion defense modernization program
- Aalyria launched in 2022, and its core technology came from Google through an acquisition 1.
- The company is one of 20 vendors on an estimated $1 billion U.S. Space Force Rapid Capabilities Office (Space RCO) Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. The work covers ground-systems software for the R2C2 program, which supports “Dynamic Space Operations” 2.
- Its Spacetime software aims to route and coordinate network traffic in real time, supporting resilient and interoperable networks for mission needs 3.
A shift in defense software buying opens doors for startups
- Aalyria’s IDIQ award fits a U.S. Department of Defense move toward software delivered in smaller steps instead of large ground-system builds 2.
- The estimated $1 billion effort was set up as a “small-business set-aside,” which reserves the work for small businesses 2.
- This “bite-sized” contract style can speed development and create a clearer revenue path for venture-backed startups outside commercial markets.
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