ATEL Ventures, a division of ATEL Capital Group and a provider of venture debt financing solutions to growth-stage companies, completed an agreement to provide $20 million of growth debt to Isar Aerospace, a launch service provider for small and medium-sized satellites.
The capital provided by ATEL Ventures will enable Isar Aerospace to finance the purchase of state-of-the-art equipment used in the production of its launch vehicles.
“Satellites have enormous potential to improve access to telecommunication, resource tracking and management and to help tackle climate change,” Steven Rea, president of ATEL Ventures, said. “The satellite market is expected to be worth $1 trillion 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.”
“Developing a launch vehicle along the approach of vertical integration requires upfront investment in specialist equipment,” David Kownator, chief financial officer of Isar Aerospace, said. “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.”
