bluShift Aerospace Raises $2.3M to Accelerate Development of Small Satellite Launch Services

bluShift Aerospace has successfully raised $1.3 million in a seed round led by Houston-based Late Stage Capital, with additional backing from the Maine Technology Institute.

This private investment is further bolstered by a $1 million matching Federal SBIR grant, bringing the total to $2.3 million.

This influx of capital will be instrumental in accelerating bluShift's development of launch services for the orbital and small satellite markets.

About bluShift Aerospace

Founded in 2014, bluShift Aerospace is dedicated to providing fast and individualized small satellite launch services, significantly reducing wait times for educational, research, commercial, and governmental customers.

The company made history with the first commercial rocket powered by its proprietary non-toxic, carbon-neutral biofuel.

Focused on the small satellite launch market, bluShift offers customers direct access to sun-synchronous orbit with rockets designed for research and commercial payloads.

Strategic Leadership and Board Expansion

Brady Brim-DeForest, managing partner at Late Stage Capital and CEO of Formula.Monks, will assume the role of chairman of bluShift's board of directors.

Brim-DeForest brings over 20 years of experience in AI technology solutions, product design, and startup management, having co-founded six successful startups and assisted numerous Fortune 500 companies in implementing innovative processes.

Joining Brim-DeForest on the board are bluShift's CEO and founder, Sascha Deri, and Maine-based entrepreneur and investor, Peter Murray. Brim-DeForest expressed his excitement about bluShift's growth, highlighting the company's unique strengths:

"bluShift stands out by manufacturing its own non-toxic biofuel and reusable rockets, developing a private launch site with direct access to sun-synchronous orbit, and optimizing costs. This combination positions bluShift for significant success in the satellite services market."

A Vision for Democratizing Space Access

The new funding marks a pivotal moment for bluShift, which has previously raised nearly $4 million. The company plans to use the new capital to complete a full-duration burn engine test in the coming months and to scale operations for commercial suborbital launches in 2025.

CEO Sascha Deri emphasized the importance of this investment:

"This funding reflects investor confidence in our exceptional engineering team and our vision for the future. It enables us to move forward with the next critical phase of our mission."

Addressing Market Needs

Deri also pointed out the significant demand for dedicated, small-lift satellite deliveries to space. Unlike large companies like SpaceX, which focus on massive satellite deployments, bluShift aims to serve smaller players who face long wait times and sub-optimal orbit delivery.

"With increasing demand for replacing individual small satellites every 3-7 years, customers are seeking rapid, affordable access to space and direct delivery to their desired orbit. We are uniquely positioned to meet this need," said Deri.

The small satellite market has grown rapidly over the past two decades, with a study by Straits Research P. Ltd predicting that the global market size for Cubesats, a class of small satellites, will increase from $210 million in 2021 to $857 million by 2030.

Strategic Location

bluShift has chosen Maine's Downeast coastline as the headquarters for its first private launch services and manufacturing sites.

This location offers distinct geographic advantages, including launch opportunities over the Atlantic Ocean directly into polar orbit, minimal interference from established flight patterns, and limited overflight of populated areas.

This strategic choice enhances bluShift's ability to provide efficient and safe launch services.

Interview Transcript

00:10

Host: Well, thank you so much, Sasha, for joining me today. Super excited to chat with you about your journey into the space economy with bluShift Aerospace and how we can do space sustainably. Is that even possible? What are the first steps we’re seeing? What’s the current state of the space economy?

There’s a lot of exciting things happening, but sometimes it takes a while to get there, and we need important teams like you to build this stuff effectively and sustainably for the rest of the world. Before we get into bluShift, talk about your journey into space, into fuel, and how you got into the space economy in the first place.

00:57

Sasha: Yeah, I mean, I think the beginning comes from when I was a kid. I happened to be a child of the post-Apollo era, reading all the books about what they did in the Apollo era. You have all those expectations of what the future will hold when it comes to space and space exploration.

Pretty much none of that was fulfilled during my childhood and well into my adulthood. But ultimately, I grew up in Maine, where you can see the universe because the light pollution is so low.

I grew up in the woods of Maine, developed a wonder for the universe and an appreciation and love for the planet, especially Maine’s natural beauty.

As I grew up, my passion for space continued. I got a degree in physics and electrical engineering, but I always wanted to combine technology with a mission to benefit humanity and our planet. In 1999, I started a renewable energy company, which is still in existence today, providing solar products and systems for off-grid living or feeding solar power into the grid.

But my passion for space never went away. In the mid to end of 2012, I decided to focus all my excess time and energy on rockets, propulsion systems, and pushing humanity’s ability to explore the universe further in a commercial fashion.

I started doing rocket engine tests with a college friend, initially using petroleum fuel. We conducted these tests on my brother’s organic farm. One day, after an engine test, I noticed something on his windowsill and thought, “What if that could work as a fuel?”

Two weeks later, we tested it, and not only did it work, but it worked better than petroleum. It was a slap in the face—why hadn’t anyone done this before?

The journey since then has been convincing others that something not derived from petroleum can power rockets, including convincing NASA when we applied for grants. There was a lot of pushback, as with anything new and different.

04:21

Host: Are you able to say what it is?

04:23

Sasha: I can’t say exactly, but it’s a solid fuel, not manure. I was filmed by CNN eating the fuel, and it’s not harmful, though not nutritionally beneficial. It’s a byproduct of farms and benefits sustainable farming practices, especially organic farms. Our engine is a hybrid rocket engine, meaning it uses a solid fuel and a liquid oxidizer, combining solid and liquid fuel properties.

05:28

Host: Why focus on rockets specifically? Why not use this fuel for tractors, cars, or other mobility types? Was it the economics of the space economy?

06:01

Sasha: We could theoretically use it for other applications, but the raw materials might not sustain a whole country’s cars. It would require a big overhaul of agricultural systems. Space transportation is a niche market, and we’re focusing on small rockets for small payloads.

07:02

Host: What does bluShift do? You stumbled upon this fuel, and now you’re making rockets for governments and businesses to deploy satellites?

07:26

Sasha: Our five-year timeline is to take tiny satellites, called small satellites or nanosatellites, to space. These satellites provide services like communications, Earth imaging, weather tracking, and climate change tracking.

Our customers are small satellite companies. There’s a $30 billion market for launching these satellites. The problem is that they currently have to hitch rides on large rockets, like SpaceX’s, without priority.

It’s like wanting to visit your grandma but only having a freight train option. We provide the ability for small satellite customers to go exactly where they want. Our rockets fit their size, providing a car or taxi service instead of a freight train.

In the short term, we’re focusing on supporting STEM, incorporating students from K through college to do experiments in space. Our first customer is MaxIQ Space, which creates science modules for students to design experiments, launch rockets, collect data, and analyze it. It’s inspiring to see students get involved in real science.

10:54

Host: There are enormous opportunities for students now in the space economy. It’s not just about becoming an astronaut; there are various roles in the space industry, like in sports, where you don’t have to play but can be involved in the front office or as an agent.

12:11

Sasha: The industry has changed over the last 20 years, moving from government to private domain with companies like SpaceX, Blue Origin, and Virgin. Even International Space Station might become a space hotel.

For us, there are many jobs available, from engineering to manufacturing to customer service. We want to create a holistic experience for customers, involving the community and sharing our science and experiences online.

14:41

Host: How do we innovate responsibly, considering biodiversity and pollution, and avoid the mistakes we made on Earth?

16:13

Sasha: It’s a constant challenge to minimize harm to the planet. For instance, batteries in rockets can be toxic. We aim to use non-toxic materials and reusable rockets. Even with composite resins, we choose less harmful options, though they might compromise performance slightly.

We have to be okay with sacrificing some performance for environmental responsibility. Aerospace has traditionally ignored environmental concerns. We aim to change that by making conscious decisions at every stage, from design to manufacturing to energy sourcing.

19:38

Host: The cost is a factor too. Reusability is key to making the business model viable.

20:04

Sasha: The rocket industry has roots in the missile industry, where reusability wasn’t a concern. Reusability is an engineering challenge. Our suborbital rockets, which go to space and return, are designed for recovery.

It’s about making engineering decisions to locate and retrieve them, ensuring they don’t pollute the ocean. We aim to power everything with renewable energy, from fuel production to rocket manufacturing.

22:17

Host: What are some of the current uses of small satellites?

23:57

Sasha: Companies like Planet provide optical images of the planet daily, in various wavelengths, for universities, nonprofits, and environmental organizations. Another company, Spire, offers satellite-as-a-service, with multiple sensors and communication capabilities.

Link provides cell phone service via satellites, ensuring connectivity in remote areas. Starlink, for example, is a constellation of large satellites providing global internet service. These small satellites are cheaper, lower power, and closer to Earth, reducing space pollution as they burn up in a few years.

29:05

Host: What about regulations and policies for launching rockets? How does that work?

29:46

Sasha: We work closely with the FAA, which has been supportive of enabling commercial space activities while ensuring safety. Regulations are rigorous, especially for environmental impact studies.

Our advantage is that our biofuel rockets have minimal environmental impact. Other countries are also supporting space innovation, but the US dominates in terms of innovation, partly due to NASA’s supportive role.

34:17

Host: NASA seems to have found the right role as an enabler and incubator.

34:47

Sasha: Absolutely. In the early 2000s, NASA shifted to enabling private industry. For us, NASA’s support has been crucial, especially in developing our rocket engine technology. It’s a collaborative effort that benefits the entire industry.

35:50

Host: What does success look like for bluShift in the next three to five years?

36:02

Sasha: Success is launching academic and professional research payloads to space regularly, eventually taking small satellites to orbit. We aim to demonstrate profitability while being environmentally friendly.

We’re also developing Maine’s economy in the space industry, creating jobs and contributing to environmental sustainability. We plan to have our launch site ready within 18 months, setting a precedent for commercial, carbon-neutral biofuel rocket launches.

38:42

Host: Amazing. Thank you so much for your time, Sasha. Best of luck to you and your team in the coming decades.

38:50

Sasha: Thank you. It was a pleasure talking with you, and I appreciate the opportunity to share what we’re doing at bluShift.