Astroscale

Astroscale Holdings Inc.

Investment Thesis

Astroscale is a pioneering space sustainability company dedicated to creating solutions for orbital debris removal and on-orbit servicing. With a mission to secure the long-term safety and sustainability of space ^[1]^[2]^[3], the company has secured significant funding, indicating strong investor confidence in its strategic vision ^[5]^[6]^[11]^[12]. Astroscale is developing advanced technologies and operational capabilities necessary to address the growing challenge of space debris and enable a more robust space economy ^[7]^[10]. Its commitment to environmental stewardship in orbit positions it as a critical player in the future of space utilization ^[4].

Key Differentiators

• Focus on end-to-end solutions for space debris mitigation and on-orbit servicing, addressing a critical and growing market need ^[1]^[2]^[4].
• Development of proprietary technologies like the ELSA-d and ELSA-M systems for debris capture and satellite life extension, differentiating them in the servicing market ^[7]^[10].
• Strategic partnerships and collaborations with major aerospace entities, such as Airbus, to advance docking technologies and sustainable satellite operations ^[9].
• Expertise in developing standardized docking plates and advanced electro-optical sensors, positioning them as key enablers for future servicing and debris removal missions ^[9].

Risk Factors

• Regulatory and legal complexities surrounding the ownership and deorbiting of defunct satellites, which could impact the business model ^[3].
• The inherent technical challenges and high operational costs associated with successful, large-scale orbital debris removal and complex servicing missions ^[7]^[10].
• Dependence on continued access to substantial capital for research, development, and mission execution, given the early-stage nature of the debris removal market ^[5]^[6]^[11]^[12].
• Market adoption and customer willingness to pay for dedicated sustainability services, which may lag behind technological readiness ^[2]^[4].

Rocket Lab Relationship

Astroscale's relationship with Rocket Lab as a customer significantly validates Rocket Lab's launch capabilities for critical, sensitive missions. Astroscale launched its 'ADRAS-J' mission, also known as 'On Closer Inspection', aboard a Rocket Lab Electron rocket in February 2024 ^[1], carrying a 150 kg payload to Sun-Synchronous Orbit. This successful launch not only contributes directly to Rocket Lab's revenue stream from launch services but also underscores Rocket Lab's reliability for specialized, scientific, and potentially government-related space missions . As Astroscale progresses with its ambitious debris removal and servicing objectives ^[2]^[4], there is a strong likelihood of repeat business for similar light-sat launches, reinforcing Rocket Lab's position in the small-to-medium launch market. This customer underscores Rocket Lab's ability to serve operators focused on space sustainability and complex orbital operations, validating its end-to-end capabilities beyond simple payload delivery by demonstrating its capacity to support missions with high precision and reliability requirements.