Pale Blue Raises $7.5M in Series B Round, to Build Production Facility
Pale Blue Inc. has completed the first close of the Series B Round. The total amount raised in Series B, including the most recent bank loans, is approximately $7.5 million (1 billion yen). In addition, the company has been selected for the DMP phase (demonstration of mass production) of the Deep Tech Startup Support Fund / Deep Tech Startup Support Project (DTSU Project) of the New Energy and Industrial Technology Development Organization (NEDO). With this funding and the DTSU Project, we will accelerate research & development (R&D) for mass production of propulsion systems, while establishing a production base.
As the first close of the Series B round, Pale Blue raised funds through a third-party allotment to Mitsui Sumitomo Insurance Venture Capital and Incubate Fund. Both are existing investors from the Seed Round. The second close is scheduled for the fall of 2023. The total amount raised, including recent bank loans, is approximately $7.5 million. With the Series B Round financing, the company will further accelerate R&D of propulsion systems for small satellites. In addition, following the successful in-orbit operation of the water vapor propulsion system in March 2023, the company will scale up the team in the manufacturing division and build a production facility.
Pale Blue has been selected by NEDO for the DMP phase of the first DTSU Project FY2023. We will work on the grant project, “Establishment of Mass Production Technology for Satellite Propulsion System Using Water as Propellant.” The DTSU Project promotes investment in deep tech startups to accelerate business growth and commercialization of innovative technologies. The DMP phase supports R&D for mass production, installation of manufacturing and inspection machines, and commercialization for companies that have almost completed R&D products. This grant will accelerate the mass production technology for water-based satellite propulsion systems, as well as building the production facilities.
Jun Asakawa, CEO and Co-Founder of Pale Blue commented: “We are very pleased to announce that we have raised the first close of Series B funding with Mitsui Sumitomo Insurance Venture Capital and Incubate Fund, who have continuously supported us through the Seed Round and the Series A Round, and that we have been selected for NEDO’s DTSU Project. With this funding, we will conduct R&D and set up a production base to enhance the value of propulsion systems for small satellites. In addition, with the adoption of the DTSU Project, we will accelerate R&D to establish mass production technology and introduce and operate the necessary production facilities. The realization of a propulsion system for small satellites that uses water as a propellant will contribute to the sustainable development of the space industry. We will continue to develop new technologies and create mobility capabilities that are core to the space industry.”
Hiroaki Hirai, Mitsui Sumitomo Insurance Venture Capital added: “It is a great honor for us to announce that Pale Blue has been selected for the DMP phase of the NEDO Deep Tech Startup Support Project. This selection will enhance their ability to supply small propulsion systems that use the ultimate green propellant, water. With the rapid expansion of small satellite mega-constellations, we are confident that their small propulsion system will be the key device for the small satellite market, competing with other propulsion system startups around the world.”
Yusuke Murata, Incubate Fund said: “I am very honored to lead this round following the Seed Round and the Series A Round. It is only with the great team that they have been able to make it this far in the three and a half years since the company was established. They are now in the full-scale mass production phase, and we will continue to work with them.”