Investment Notes: Nominal Systems

Jelix Ventures is proud to back Nominal Systems, the pioneering spacetech software designed to make space missions more successful, secure and easier to manage.

In November 2024, Jelix Fund 1 participated in Nominal Systems’s oversubscribed AUD $3.3 million seed round led by Investible, with participation from Beaten Zone Ventures, Galileo Ventures, TEN13, Innovation Bay and multiple angel investors. This capital will help the company to expand its global presence and deliver on its mission to bring the safety of air traffic management to space with digital twins. 

As space missions have become more commercial, complex, and time-sensitive over the past decade, the industry has struggled to keep up with these evolving demands. Nominal Systems offers a digital twin software platform that simulates, tests, and trains satellites and spacecraft before launch, significantly reducing mission failure risks, enhancing cybersecurity, and managing the complexities of space operations.

The company was founded by Dr. Christopher Capon and Dr. Brenton Smith, who identified pain points in the industry after working on a failed spacecraft mission. The team went on to conduct extensive research and interviews with over 100 professionals in the space sector, confirming the challenges identified were widespread. This realisation led to the creation of Nominal Systems, with a mission to improve the reliability, safety, and sustainability of space missions.

Why we're excited to back Nominal Systems

A hungry team with deep domain expertise

The founding team of Nominal Systems, Dr. Christopher Capon and Dr. Brenton Smith, brings extensive experience and expertise to the company. Both hold PhDs in Aerospace Engineering and have a deep understanding of the industry’s challenges having worked in it before founding Nominal Systems. The team has also been recognized for its achievements, with both founders receiving the Australian Space Awards’ Rising Star of the Year honors in 2021 and 2022.

Strong space industry relationships

Nominal Systems has made significant progress in the space industry, collaborating with major organizations such as the UK Ministry of Defence, Gilmour Space Technologies, and the Australian National University. Notably, the company has reached profitability through its revenue to date. Its digital twin platform has received acclaim for its ability to simplify the complex processes involved in space mission design, testing, and operations.

Looking ahead, the company plans to focus on developing the Digital-Twin-as-a-Service (DTaaS) model, which aims to create a consistent, scalable, and recurring revenue stream. This strategy is already beginning to show promise, highlighted by a robust sales pipeline that includes interest from several universities. Current proof-of-concept trials for the DTaaS model are offering valuable feedback for product development during this critical phase.

Large space market opportunity with scope to extend

The satellite industry is significant and experiencing rapid growth, with Nominal Systems targeting a Total Addressable Market (TAM) estimated at $1.2 billion. Nominal's Digital Twins as a Service (DTaaS) product allows users to pay a monthly or annual fee based on the number of assets they manage. This model provides customized recommendations, including predictive maintenance, automated scheduling, and cybersecurity alerts. The offering directly addresses the challenges faced by space asset engineers and, importantly, helps teams minimize mission failures as a result.

In addition to the space sector, Nominal Systems identifies significant opportunities in other industries, such as maritime, aerospace, and infrastructure, which collectively represent an estimated TAM of $137 billion. The company believes that its expertise in digital twinning for space assets can be applied to expand into these related markets.

As the space industry continues to grow, the demand for advanced space traffic management solutions is increasing. With the right support and resources, Nominal Systems can establish itself as a key player in this emerging market and realize its long-term vision of revolutionizing remote asset management, with space as just the beginning.