Over 200 Venture Capitalists Compete for Investment in Lumen Orbit’s $11 Million Seed Funding Round
In a significant development for the space technology industry, Lumen Orbit, a startup focused on building data centers in space, has closed its seed round in mere days amid intense investor interest. The Redmond, Washington-based company secured an $11 million investment at a valuation of $40 million, confirming earlier reports by TechCrunch.
Led by NFX, with Participation from Renowned VCs
The deal was led by NFX, a prominent venture capital firm known for its focus on innovative technologies. Morgan Beller, a general partner at NFX, will join the company’s board as part of the investment. Other notable participants in the round include VCs such as Fuse.VC, Soma Capital, and scout funds from Andreessen Horowitz and Sequoia.
High Investor Demand: Lumen Orbit Opens Another SAFE Round
Lumen Orbit co-founder and CEO Philip Johnston revealed that over 200 VCs expressed interest in investing in the company. As a result, the startup has opened another SAFE (Simple Agreement for Future Equity) round at a higher valuation to accommodate more investors.
Ambitious Goals: Building Multi-Gigawatt Compute Clusters
Lumen Orbit’s mission is to establish orbital data centers that consist of pods, each capable of holding compute and attaching to large solar panels in space. The company aims to build multi-gigawatt compute clusters by the end of the decade, revolutionizing the way AI companies scale their operations.
Key Benefits: Reduced Costs and Environmental Impact
The Lumen Orbit concept offers several advantages over traditional data centers on Earth. By leveraging high-bandwidth optical lasers, data can be transmitted back to Earth without the need for expensive infrastructure. Moreover, space-based data centers will not contribute to the growing problem of climate change.
Addressing AI’s Growing Data Center and Power Problem
The success of Lumen Orbit relies on continued advancements in satellite technology and reducing costs associated with launching satellites into orbit. However, if successful, the company could help AI companies scale their operations without being limited by data center size and power restrictions on Earth.
Lumen Orbit’s Demonstrator Satellite: A Crucial Step Forward
The startup plans to launch a demonstrator satellite in May, featuring Nvidia’s terrestrial GPUs. This will be followed by another test satellite that is 100 times more powerful the following year. Johnston emphasized the importance of gradual progress, stating, "We’re not trying to do everything at once."
A New Era for Space Technology and AI
Lumen Orbit’s achievement marks a significant milestone in the development of space technology and its application in AI. As the industry continues to evolve, we can expect to see innovative solutions emerge that address some of the world’s most pressing challenges.
Rebecca Szkutak is a senior writer at TechCrunch who covers venture capital trends and startups.
