Sateliot has opened a €10 million convertible note to finance the deployment of its commercial low-orbit satellite constellation that will provide 5G coverage for IoT devices all over the world, directly from space. The company plans to launch the first satellite of this constellation from the US in the first quarter of 2023, thus fully entering its commercial phase.
This operation, which is a first step before launching the Series B round of financing with which it wants to raise 100 million euros, is aimed at early-stage investors such as venture capital, family offices or business angels and the minimum ticket is half a million euros. This is one of the largest 5G satellite investments in the European Union.
The convertible note is a type of equity loan that is very common in the US in the first rounds of start-up financing. It works like a short-term loan on the company's balance sheet, the equity of which is converted into shares in subsequent financing stages.
This transaction arises months after Sateliot successfully closed a €10 million Series A funding. European funds and investors and IBEX companies such as Indra and Cellnex, which joined as industrial partners, with a 10.5% and 3.5% stake, respectively, participated in a majority stake. Sepides also became a shareholder in Sateliot, taking a 4.69% stake in the capital.
Series B funding and full constellation deployment
This convertible note is the first step towards the launch of the Series B funding, which aims to fully deploy a constellation of 250 nanosatellites under the 5G standard to launch commercial service in 2023 and provide planetary coverage for IoT.
Thereby, it is expected to reach a turnover of 1,000 million euros and an Ebitda of 370 million euros in 2026. To this end, the company is already reaching agreements with global telecommunications operators with a portfolio of more than 1.2 billion customers.
For the founder and CEO of Sateliot, Jaume Sanpera, "with the start of the 'pre-Series B' we continue to fulfil our financing plan that places us at the door of a year, 2023, which will be fundamental for the growth of our company".
Sateliot, which operates from its offices in Barcelona and San Diego in California, is already moving among the big companies with a commitment that has made it the first satellite telecommunications operator to combine the connectivity of the so-called Internet of Things in space with 5G cellular terrestrial networks.
Sateliot is the first satellite telecommunications operator to provide global and continuous connectivity to all the elements that will make up the Internet of Things (IoT) universe under the 5G protocol. Thanks to a constellation of state-of-the-art nanosatellites, located at low altitude and acting as mobile towers from space, Sateliot is the perfect complement to large telecommunications companies by providing them with the necessary infrastructure to extend their coverage where terrestrial technologies do not reach.
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