ATEL Ventures, Inc. Provides $20M Venture Debt Facility to Isar Aerospace

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Jun 04, 2024, 08:17 ET

- Growth debt will be invested in state-of-the-art manufacturing equipment
required for building launch vehicles in automated series production -

SAN FRANCISCO, June 4, 2024 /PRNewswire/ -- ATEL Ventures, Inc., a division of ATEL Capital Group and a provider of venture debt financing solutions to growth-stage companies, today announced the completion of an agreement to provide $20M of growth debt to Isar Aerospace, a launch service provider for small and medium-sized satellites.

Founded and headquartered in Munich, Germany, Isar Aerospace is developing Spectrum, a two-stage rocket specifically designed to launch small to medium satellites and satellite constellations into orbit.

Rendering of the Isar Aerospace Spectrum launch vehicle lifting off. Credit: Isar Aerospace

Isar Aerospace is building on a high vertical integration and uses advanced technologies and a high degree of automation in its manufacturing, to make access to space more flexible and cost-efficient. The capital provided by ATEL Ventures will enable the company to finance the purchase of state-of-the-art equipment used in the production of its launch vehicles.

Satellites that will be launched by Isar's Spectrum vehicle have the capacity to bring internet connectivity to rural communities and those in developing countries—currently around one-third of the earth's population. They can also enable multiple use cases around Earth Observation or Navigation. Such satellites will have a key role in fighting climate change or enabling smart mobility.

Steven Rea, President, ATEL Ventures said: "Satellites have enormous potential to improve access to telecommunication, resource tracking and management, and to help tackle climate change. The satellite market is expected to be worth $1TN by 2040. Launch is the key bottleneck in that revolution and we therefore expect Isar Aerospace to play a major part in it by enabling flexible and cost-efficient access to space."

David Kownator, Chief Financial Officer, Isar Aerospace said: "Developing a launch vehicle along the approach of vertical integration requires upfront investment in specialist equipment. This agreement with ATEL Ventures is an important component of our financing model, especially as we are starting the construction of a new large-scale manufacturing facility."

About ATEL Ventures, Inc.
ATEL Ventures Inc., a division of ATEL Capital Group, is a leading provider of venture debt and equipment financing to emerging growth companies. The company is a primary source of non-dilutive capital across the landscape of venture capital investments. ATEL Ventures is industry- and stage-agnostic, having provided capital to companies in Information Technology, Life Sciences, Energy, Agriculture, Material Sciences, and Consumer Products and Services. For more information, visit: https://atelventures.com/ or contact Steven Rea: [email protected]

About Isar Aerospace
Isar Aerospace, based in Ottobrunn/Munich, develops and builds launch vehicles for transporting small and medium-sized satellites as well as satellite constellations into Earth's orbit. The company was founded in 2018 as a spin-off of Technical University Munich. Since then, it has grown to more than 400 employees from more than 50 nations with many years of hands-on rocket know-how and experience within other high-tech industries. More information via: www.isaraerospace.com

SOURCE ATEL Ventures