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Aalyria Raises $100 Million, Reaches $1.3 Billion Valuation Amid Growing Demand for Space Connectivity

Prime Highlights

  • Aalyria secured $100 million in new funding, lifting its valuation to $1.3 billion as investors increase bets on space-based and defense communications.
  • The round was led by Battery Ventures, with participation from J2 Ventures and DYNE.

Key Facts

  • Spun out of Google in 2022, Aalyria develops software that integrates satellite, airborne, maritime, and ground networks, and originated from technology used in Project Loon.
  • The company has secured contracts and research support from NASA, the U.S. Air Force, the European Space Agency, and satellite operator Telesat.

Background

Aalyria, a communications technology firm spun out of Google in 2022, has secured $100 million in fresh funding, pushing its valuation to $1.3 billion. The round was led by Battery Ventures, with participation from J2 Ventures and DYNE, as investors increase bets on space-based connectivity and defense communications.

The company develops software that allows satellite, airborne, maritime and ground networks to operate as one system. The platform can quickly redirect traffic between different satellite networks in seconds. This helps keep connections working during outages, conflicts, or natural disasters. The technology also lets operators share extra capacity and work together across low- and mid-Earth orbit systems.

Investor interest has grown as governments seek backup providers beyond SpaceX’s Starlink. Early disruptions in Ukraine showed the risks of relying on just one commercial network, which pushed the U.S. to take action and European agencies to fund alternative infrastructure. Aalyria has already secured contracts and research support from NASA, the U.S. Air Force, the Defense Innovation Unit, the European Space Agency and satellite operator Telesat.

Alongside its software, Aalyria sells Tightbeam, a laser communications system that can be mounted on ships and aircraft. The system transmits data over distances of more than 100 kilometers at speeds comparable to fiber-optic internet. In orbit, its software can automatically reorganize satellite constellations if one unit fails or degrades.

The company’s core technology originated inside Google and was first used in Project Loon, which aimed to deliver internet via high-altitude balloons before it shut down in 2021. Google retains an ownership stake in the startup.

Chief executive Chris Taylor said the new capital will fund hiring, product development and customer support. Aalyria currently employs about 90 people and plans to expand its workforce by at least one-third over the next year. Investors expect the funding to help the company deploy its first fully operational constellations and compete for both commercial and government contracts in the fast-growing satellite communications market.