LeoSat started collaborating with Thales A. Space during 2014 for designing assembly of 108 low Earth orbiting satellites that would provide connection to people that would be willing to pay hefty sums of money for large volume of low latency capacity. The firm is trying to close its funding round worth $50 million and looking beyond its old partner to build a smaller constellation of light satellites. Due to persuasion from investors like Hispasat and Sky Perfect Jsat based at Spain and Japan respectively last year LeoSat announced that it was going back to its drawing board for reduction of its constellation project cost of $3.5 billion to bring it down to $3 billion.
The revised plan to fund its satellite constellation project will now have $1 billion of equity and two billion of debt. Mark Rigolle, the firm’s CEO stated that both Hispasat and Sky Perfect of Japan made similar investments of undisclosed amounts towards LeoSat’s current Series A funding that was downsized from $100 million to $50 million. But now they have gone back on previous decision to make more investments which has forced the firm to look for new investors. The firm wants to look at bids from others in its search for new funding resources as early as possible.
Staying with Thales A. Space is a bit of a challenge for LeoSat at this point as it has to meet a Jan 2021 deadline for launch of one satellite at least so that it can secure the spectrum for entire group of satellites through the Intl Telecom Union. CEO Rigolle stated that they may soon be able to sign on a deal that will allow them to have freedom and have fair and open competition between several manufacturers. Filing for ITU constellation can be made by satellite operators themselves too but manufacturers sometimes put in their filings in expectation of getting clients by finishing some parts of their regulatory work on their behalf.