AscendArc secures $4M funding to develop small GEO communication satellites, wins $1.8M AFWERX contract
February 5, 2025
AscendArc, a startup based in Portland, Oregon, USA, emerged from stealth at the end of January after raising $4 million to enter the expanding market for small geostationary communication satellites. The company also announced that it has secured a $1.8 million Phase II Small Business Technology Transfer (STTR) contract from AFWERX, the innovation arm of the US Air Force. This contract will support the development of technology aimed at improving high-bandwidth satellite communications.
“Their innovative approach holds the potential not only to revolutionize commercial satellite communications—providing even lower cost satellites for the commercial market—but also to provide crucial solutions for countries’ national security,” said Seraphim investor Lewis Jones.
The company raised $505,000 in a pre-seed round and $3.45M in seed funding. Investors include Seraphim Space, Everywhere Ventures, Portland Seed Fund, Thermo, and Hunter Communications.
Founder and president Chris McLain, who has also worked on geostationary communications solutions at Boeing, Lockheed and Panasonic, said AscendArc’s goal is to “provide scalable, cost-effective solutions that address the US military’s growing demands for advanced satellite systems.”
The company announced a collaboration with Portland State University under the AFWERX contract to enhance its technology for the US Department of Defense.
The startup is challenging the LEO trend, believing that low-cost and high-bandwidth small GEO satellites could provide better cost-efficiency. Traditionally, GEO satellites have been quite large, often exceeding 5,000 kg, and are expensive to develop. In contrast, LEO connectivity necessitates the deployment of extensive satellite constellations, which often remain underutilised over oceans.
AscendArc believes that the ideal market is in smaller (sub-1,000 kg) GEO satellites, which can provide continuous coverage over a specific region, although at slower connectivity speeds compared to LEO satellites.
Investors are reportedly focusing on the small GEO satcom sector, believing that low-cost manufacturing and strong connectivity speeds can provide attractive economic benefits.
