**Apex Secures $95 Million in Funding to Fuel Growth**
Fresh off the success of its first mission, satellite manufacturer Apex has closed a $95 million funding round to scale its operations. The Los Angeles-based startup recently launched and commissioned its first spacecraft, called Aries, in March. This mission has been a rarity in the space industry, as it has gone off without a hitch. With flight heritage now achieved, Apex is focused on expanding its production capabilities and developing its next spacecraft, Nova.
**Scaling Production and Expanding Capabilities**
One of Apex’s main goals is to scale up the production of Aries vehicles and invest in the development and production of Nova, a spacecraft that is approximately twice the size of Aries. The company plans to manufacture five Aries vehicles this year alone, according to Apex CEO and co-founder Ian Cinnamon. By standardizing satellite buses, which have traditionally been subject to lengthy engineering processes, Apex aims to rapidly increase companies’ ability to send their payloads to orbit.
**Productization in the Space Industry**
The drop in launch costs, thanks to SpaceX Falcon 9 ride-share missions, has increased demand for access to space. This has created an opportunity for productized spacecraft to thrive in the market. Customers are paying a fixed price for a ride to orbit up to a certain volume size. By standardizing and even slightly over-engineering spacecraft at no additional cost to the customer, Apex has found a way to meet this demand for standardized satellite buses.
**A Strong Foundation for Business Growth**
Apex’s focus on productization has provided a strong foundation for its business. By clearly outlining the selling price, unit economics, and margin for each satellite bus sold, the company has generated transparency and trust with its customers. This approach has allowed Apex to occasionally charge a premium for fast delivery time frames. Investors have been drawn to the company’s clear economic picture and its ability to demonstrate strong fundamentals in a rapidly growing industry.
**Building Constellations and Multiple Satellite Purchases**
One advantage Apex has is that its customers are often interested in purchasing multiple satellites over time, as they build out their constellations. This creates a steady stream of revenue for the company and contributes to its long-term growth potential. As a result, Apex expects its team to double in size by the end of this year.
**Successful Funding Round**
The recent funding round, led by XYZ Venture Capital and co-led by CRV, raised $95 million for Apex. The round also included participation from new investors such as Upfront, 8VC, Toyota Ventures, Point72 Ventures, Mirae Asset Capital, Outsiders Fund, and GSBackers. Existing investors, including Andreessen Horowitz, Shield Capital, J2 Ventures, Ravelin, Robinhood co-founder Baiju Bhatt, and Avalon Capital Group, also contributed to the funding round. This strong support from investors highlights the confidence in Apex’s business model and its potential for future success.
Overall, Apex’s ability to productize satellite buses and meet the growing demand for standardized spacecraft sets it apart in the space industry. With significant funding secured and a clear path for growth, Apex is well-positioned to continue expanding its operations and establishing itself as a leader in the satellite manufacturing sector.