Sateliot has opened a €10 million convertible note to finance the deployment of its commercial constellation of low-orbit satellites that will provide 5G coverage for IoT devices anywhere in 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 the first step before launching the 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. The minimum ticket is half a million euros. It 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 comes months after Sateliot successfully closed its Series A with €10 million in funding. European funds and investors and IBEX 35 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 and full constellation deployment
This convertible note is the first step towards the launch of the B series, which aims to fully deploy a constellation of 250 nanosatellites under the 5G standard to launch the commercial service in 2023 and provide planetary coverage for IoT.
With it, it expects 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 finalizing 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 fulfill the financing plan that puts us on the threshold 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.