Big changes are coming to ABL Space Systems. The seven-year-old startup's leaders made the big announcement on social media last night. The company will no longer focus on the commercial launch market and will instead focus on missile defense.
ABL is developing a small launch vehicle called RS1 and a mobile ground system designed to fit inside a shipping container, with the goal of delivering the first truly portable and responsive launch to the market. I was holding it up. To achieve this objective, the startup has invested significant capital in in-house technology development and infrastructure, including new rocket engines. They had three test sites, two factories, and a launch site spread across three different states.
This growth came at a significant cost. In total, ABL Space has raised $461 million, more than half of which came from a $372 million Series B round in 2021 that valued the company at $2.4 billion.
However, the startup faced difficulties in actually getting RS1 off the ground. During the first flight test in January 2023, the rocket's nine engines spontaneously stopped shortly after liftoff, falling to Earth and colliding with the launch pad, destroying it on impact. Ahead of its second flight operation in July this year, ABL announced that the rocket suffered a serious anomaly during pre-flight testing, leading to the loss of the aircraft.
But ABL founder and president Dan Piedmont said in an announcement posted on X and LinkedIn that these failures:[advanced] Our technology is ready. ''Rather, the company said it decided to change direction because of changes in the launch market. ABL did not respond to TechCrunch's request for an interview.
“In recent years, we have seen our ability to meaningfully impact the launch industry diminish,” Piedmont said. “Successful undertakings such as scaling an orbital launch program require deep motivation from many stakeholders about their mission and potential impact.As the launch market matures, these motivations will continue to grow. has diminished, and the path to making a significant contribution as a commercial launch company has narrowed considerably.”
At the same time, Piedmont said the company recognized that the United States was ill-equipped to respond to missile threats, adding that “ABL's technology will allow for more test ranges, more frequent flights, more creative We realized that by providing new capabilities through advanced research and development, we could help solve these problems.''To address these needs, companies can address these needs rather than simply addressing them as additional lines of business. We were convinced that we needed to focus our efforts specifically on that mission. ”
He added that ABL sees “considerable opportunities” to apply existing IP, including the RS1 rocket, to this new mission.
Missile defense is a major investment area for the U.S. Department of Defense, with the department's fiscal year 2025 budget allocating $13.5 billion for missile defense programs such as tactical missile interceptors and anti-missile technology. Even a fraction of that money could be valuable to ABL. That is, if they can overcome the notoriously tough government sales environment.