Quantum spacea start-up with plans to build highly maneuverable spacecraft for the US military has announced plans to go public through a $1.2 billion merger with a publicly traded special purpose acquisition company, or SPAC.
In an era of big IPOs, there’s something almost quaint about a SPAC — in 2021, a fad for the vehicle to go public started in the space sector and spread throughout the tech world. Many SPACs proved disastrous for private investors who bet on immature companies, but a few deals, notably Rocket Lab and Planet, proved successful.
Another positive result was Intuitive Machines, a NASA fabrication contractor launched by Kam Ghaffarian, a longtime space investor who backed a group of former NASA officials willing to sell their expertise back to the agency. Today, Intuitive Machines is a $6.4 billion company that sends a regular cadence of robotic missions to the moon.
Now, Ghaffarian is trying to do it again with Quantum Space, a startup launched in 2020 to capitalize on the establishment of the US Space Force and the growing need for vehicles that can move between orbits and rendezvous with other spacecraft.
“America’s defense spending, space infrastructure and strategic priorities in orbit are converging just as Quantum Space is poised to scale,” Ghaffarian told TechCrunch. “The demands of the Space Force are growing rapidly and the demand for maneuverable spacecraft is accelerating. The Ranger is purpose-built to meet both.”
At the helm is CEO Jim Bridenstine, a former congressman and NASA administrator during President Donald Trump’s first term. A champion of public-private partnerships, Bridenstine will seek to leverage his knowledge of the space industry to win key contracts.
Quantum Space is involved in six government development programs, including one that could see its vehicle headed for the moon. But the company has a simple focus.
“We are designed specifically for national security,” Bridenstine said. While most satellites carry only enough fuel to change position slightly and eventually jettison themselves, a newer generation of spacecraft — including some from Russia and China — are designed to move quickly between orbits and stay in place for continuous surveillance tasks.
Ranger, the company’s starship, is designed to match and outperform these competitors. It is expected to carry significant fuel, allowing it to remain in high orbits for long periods to track competing satellites. The vehicle must also be refueled to qualify for Andromeda task orders.
Quantum Space has been selected to join the Andromeda contract, a $6.2 billion effort that will task companies with developing vehicles for space exploration. It now needs to win task orders for actual funded missions starting in 2030.
The SPAC transaction is expected to raise $300 million in private investment along with any public proceeds, which will be used to build manufacturing facilities in Tulsa, Oklahoma, capable of producing one Ranger per quarter by the end of 2028. The next step is to launch the first Ranger prototype into orbit in 2027, sponsored by financier B. Machines and USA Rare Earth in the public markets.
However, the decision to leave private markets behind highlights the competition facing Quantum Space. True Anomaly, a startup also competing for Andromeda task orders, has raised $1 billion from venture capitalists. The company is also looking to win over established defense contractors such as Lockheed Martin, Northrop Grumman and Boeing’s Millennium Space Systems, among others.
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