Investment Notes: VXB Aerospace

Jelix is proud to back VXB Aerospace, the breakthrough satellite technology company set to propel the next wave of satellite launches by creating thrusters that are fast, cost-effective and easy to integrate with current technology.

In November 2024, Jelix Fund 1 led a seed funding round of AUD $1.2 million for VXB Aerospace, with participation from several angel investors. This capital will assist the company in developing its 'Zephyr' thruster and proprietary AI technology to address critical market demands for reliable and efficient satellite propulsion. This funding round coincides with VXB's participation in the prestigious US-based Techstars Space 2024 Accelerator program, where the team will work on their product with guidance from global experts in space technology and commercialization.

Why Jelix is excited to back VXB Aerospace

Deep domain expertise in a highly technical sector

VXB's team is a significant asset, with deep expertise in plasma physics and satellite propulsion. The founder, Alex Ryan, holds a PhD in plasma physics, and CTO Zack Levy has a PhD in Astrochemistry. VXB has also attracted an impressive group of advisors with extensive backgrounds in space systems engineering, advanced manufacturing, and satellite operations. This concentration of expertise is difficult to replicate, providing VXB with a strong competitive advantage in the market. 

Promising pathway to revenue 

VXB is pre-revenue, as can be expected for a deep tech company at this early stage. However, it has made significant strides in building commercial traction, with six letters of intent (LOIs) from satellite companies expressing interest in the Zephyr propulsion system. These LOIs indicate a strong market interest in integrating VXB's thrusters into future satellite missions. When Jelix spoke with potential VXB customers, one even mentioned that if they had the personal capital to invest they would, as it is tackling a very painful problem for lots of companies. In addition, VXB has been accepted onto the US-based Techstars Space 2024 Accelerator program - this is only the second time an Australian company has been accepted.

Offers compelling proposition in the fast-growing satellite market 

The satellite propulsion market is expected to grow substantially over the next decade, with an estimated 60,000 to as many as 100,000 satellites expected to be launched by 2032. However, current propulsion systems face challenges with scalability, cost, and delivery speed, leading to bottlenecks in satellite deployment. VXB's thrusters are well-suited for the vast majority of satellite fleets, particularly as the industry shifts towards larger satellites driven by decreasing launch costs. Even under conservative estimates (e.g. launch of only 30,000 satellites over the next decade), the market is set to experience an average annual growth rate of 14% to 22%, underscoring the significant opportunity for VXB to capture a substantial share of this expanding market.

Product defensibility through proprietary evolutionary AI algorithms

VXB's Zephyr thruster reduces fuel costs by 100 times, lowers unit costs by five times, and offers significantly shorter lead times compared to existing alternatives. VXB's product defensibility is anchored in its proprietary evolutionary AI algorithms, which enable rapid development and cost reductions that are difficult for competitors to match. Additionally, VXB's optimised design for using Argon as a propellant offers significant fuel savings, creating another barrier for competitors who would need to undergo costly and time-consuming redesigns to replicate this advantage. The specialised expertise within VXB's team further enhances its defensibility, making it challenging for new entrants to compete on both technology and talent.

VXB's innovative approach leverages proprietary AI-driven design methods and advanced manufacturing techniques, setting it apart from legacy providers. This positions VXB as a key player in a market where reliable and efficient propulsion is critical for satellite operators to meet their operational goals.