UK-based startup NewOrbit has secured an oversubscribed $18.5 million Series A funding round to develop the first commercial satellites designed for very low Earth orbit (VLEO), a region between 200 and 300 kilometers above Earth that has remained commercially untapped due to technical challenges.
- VLEO has been avoided due to environmental and physical challenges.
- NewOrbit’s satellites are engineered to operate reliably for up to five years in VLEO.
- Series A funds will scale a dedicated VLEO satellite production facility in Europe.
What happened
Reading-based NewOrbit has completed an oversubscribed $18.5 million Series A funding round led by Voyager Ventures, with participation from notable angel investors and existing backers. This capital injection will facilitate building and deploying the company’s first commercial satellite designed specifically for very low Earth orbit, targeting an initial launch in 2028.
VLEO represents a near-Earth orbital altitude band of 200 to 300 kilometers, historically reserved for government missions like spy satellites and the International Space Station but unexploited commercially due to extreme atmospheric drag, corrosive atomic oxygen, and aerodynamic instabilities. NewOrbit’s satellite, NEO-1, is designed to counter these challenges with continuous propulsion and resistant materials.
Why it matters
Operating in VLEO offers unique advantages including much higher resolution satellite imagery and significantly faster data transmission speeds. NewOrbit claims their satellites can deliver imagery quality superior to conventional systems at up to 20 times lower cost, potentially transforming markets such as Earth observation and space-based communications.
The ability to maintain satellites at lower altitudes could also enable novel services like direct-to-device 5G connectivity and live HD video from space, which are difficult or impossible from higher orbits. If successful, NewOrbit could pioneer a new commercial space segment that has been considered too hostile for durable operation until now.
What to watch next
NewOrbit plans to open the NEO Production Complex in 2027 to manufacture its satellites at scale, ramping from 10 units per year initially to several per week at full capacity. This facility is positioned to become Europe’s largest dedicated VLEO satellite factory, incorporating expertise from former SpaceX, NASA, ESA, and industry veterans.
The coming years will reveal whether NewOrbit can achieve its ambitious claims of five-year satellite operation in VLEO’s challenging environment and deliver cost reductions as promised. Competitors like Univity and backing from organizations such as ESA indicate growing interest in this orbital band, but no commercial payload has yet flown successfully below 300 kilometers.