Key Moments

You Don’t Have To Be A Billionaire To Launch Satellites

Y CombinatorY Combinator
Science & Technology4 min read14 min video
Oct 31, 2024|29,943 views|845|26
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TL;DR

Astranis built billion-dollar satellites from an apartment and launched their first in 2018, despite the misconception that hard tech needs massive initial capital.

Key Insights

1

Astranis began as a small startup in an apartment, challenging the idea that launching satellites requires billions of dollars from the outset.

2

The company's first prototype satellite was built and operated within a challenging three-month Y Combinator demo day deadline.

3

Astranis secured one of the largest seed rounds at Y Combinator at the time, which funded their first satellite launch.

4

They managed to build spacecrafts on IKEA desks and create a makeshift cleanroom using PVC piping and shower curtains.

5

The company now operates with over 400 employees and is preparing to launch four satellites on a dedicated SpaceX Falcon 9 rocket.

6

Astranis is testing critical satellite components like vibration resistance and thermal vacuum survivability in-house using specialized equipment.

Challenging the need for billionaire status in hard tech

A prevalent misconception in the hard tech industry is that starting a company requires immense personal wealth or the ability to raise billions upfront, akin to figures like Elon Musk. Astranis, however, exemplifies a different path. Founded by John Gedmark and Ryan McLinko, the company's journey began in a small San Francisco apartment, with their initial goal being to build and launch a functioning satellite. This approach fundamentally challenged the notion that significant upfront capital is the only way to achieve groundbreaking feats in aerospace. Their success, including becoming a billion-dollar company and launching commercial satellites, directly contradicts this widely held belief, suggesting that domain expertise, a compelling co-founder relationship, and a scrappy mindset can pave the way for hard tech innovation.

The ambitious three-month MVP goal at Y Combinator

When Astranis joined Y Combinator (YC) in Winter 2016, they recognized the difficulty of raising the substantial funds needed for a full satellite launch. To overcome this, they set an audacious goal: to build a prototype satellite within the three-month YC batch. This wasn't a typical MVP development; for a geostationary telecommunication spacecraft, a minimum viable product is inherently complex. Yet, Gedmark and McLinko committed to building a basic version to prove their capability to integrate components, deploy to an operational environment, and conduct elementary tests. This intense three-month sprint resulted in a prototype that was showcased on Demo Day, significantly impressing investors and proving their ability to execute under extreme pressure. The success of this pitch is still highlighted by YC as a prime example of what determined founders can achieve.

Scrappy beginnings: Building satellites on a budget

Following their successful YC pitch and securing a significant seed round, Astranis continued to operate with remarkable frugality. They moved into an 1,800-square-foot apartment, which served as their workspace for building spacecraft. The team utilized IKEA desks, fitted with necessary tools and ESD mats, to assemble the hardware. To meet the stringent cleanliness requirements for space hardware, they ingeniously constructed a makeshift cleanroom. This involved using PVC piping and shower curtains, along with a spray called Staticide, to minimize static electricity. This period highlights their ability to adapt and innovate with limited resources, demonstrating that sophisticated aerospace projects can be initiated with minimal infrastructure, relying heavily on ingenuity and resourcefulness.

Proving capabilities through early launches and in-house testing

A critical early objective for Astranis was to demonstrate their ability to place a satellite into space and ensure its functionality. This led to the ambitious goal of building and launching a functional satellite by 2018. Beyond just launching, Astranis has heavily invested in bringing essential testing processes in-house. They utilize a Vibe or Shaker table to meticulously simulate the intense vibrations experienced during rocket launch, ensuring their satellites can withstand the journey. Furthermore, they employ large thermal vacuum chambers to test satellites under hard vacuum conditions, mimicking the space environment for extended periods of 7 to 10 days, allowing the satellite's software and systems to operate as if in space. They even found that ion thruster tests could be conducted within these chambers, further optimizing their internal capabilities and reducing external dependencies.

Scaling up for commercial operations and future development

Eight years after its apartment beginnings, Astranis has grown significantly, now employing over 400 people in a historic building at Pier 70. This expansion is marked by their recent manufacturing of four new satellites, which are scheduled to launch together on a dedicated SpaceX Falcon 9 rocket. This marks a major milestone as they become one of the first new companies to secure an entire dedicated launch vehicle. The focus for the past few years has been on scaling up design and manufacturing capabilities. Looking ahead, Astranis is preparing to transition from operating a single satellite to managing a constellation of five, anticipating significant learning curves and challenges. Simultaneously, they are actively developing their next-generation systems, showcasing a continuous drive for innovation and future growth within the commercial satellite market.

Launching Satellites: Key Takeaways for Aspiring Hard Tech Founders

Practical takeaways from this episode

Do This

Start small with a minimum viable product concept, even for complex hardware.
Recruit a co-founder with complementary skills and industry experience.
Set ambitious goals and prove progress during accelerator programs like YC.
Be scrappy and resourceful, utilizing cost-effective solutions for development and manufacturing.
Focus on building and testing core functionalities early to demonstrate capability.
Bring critical testing processes like vibration and thermal vacuum testing in-house.
Persevere through challenges and maintain a long-term vision.

Avoid This

Believe you need to be a billionaire to start a hard tech company.
Wait for large amounts of funding before taking initial steps.
Overcomplicate the initial prototype; focus on proving basic functionality.
Outsource essential testing without exploring in-house capabilities.
Lose the scrappy mindset as the company grows.

Common Questions

Companies like Astranis demonstrate that with domain expertise, a strong co-founder, a scrappy mindset, and perseverance, it's possible to launch satellites without billionaire status. Leveraging accelerators like YC and focusing on efficient, low-cost solutions are key.

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