[The trajectory of startups] Part 1: Rules and technology for space debris removal and a system where funding circulates — Astroscale HD

SPACE SWEEPERS: the cleaners of space. Astroscale (now Astroscale Holdings) was founded in 2013 with the belief that just as there are garbage collection systems on Earth, there is a need for rules and technology to remove space debris, and a system where funding to support these activities circulates. Twelve years after being told "there is no market," "there is no technology," "legal regulations are not in place," and "enormous costs are required," in 2024, an artificial satellite developed by the Japanese corporation approached within 15 meters of space debris. Subsidiaries have also been established in five countries including the UK and the US. The company is becoming one that will handle future space roadside assistance services.

Mitsunobu Okada is the founder and Chief Executive Officer (CEO) of Astroscale. He entered the Ministry of Finance from the Faculty of Agriculture at the University of Tokyo, then moved to McKinsey & Company. He was also involved in the IT field. Approaching 40, he fell into a "midlife crisis" and decided to venture into the space business, his former dream, seeking excitement. He knew nothing about the space industry and had only one relevant friend at the Japan Aerospace Exploration Agency (JAXA).

Reading 700 papers and continuously meeting researchers

To establish technical hypotheses for "removing debris with satellites," Okada obtained paper collections at conferences, printed them out, and organized them by field into files. He categorized them into groups like "satellite thermal design," "orbital mechanics," and "robotic arms," reviewing 700 papers and carefully reading 300. At conferences, he searched for talent to join the company. However, the responses he received were detached reactions like, "That's very interesting work you've started." Still, he continued meeting space-related researchers. The people he gathered were post-retirement seniors and young people in their 20s and early 30s.

For fundraising, he listed funding options such as "donations from foundations and funds," "investment from investors," "bank loans," and "government subsidies," and tried all of them in the first and second years after starting. He sent emails to foundations worldwide, and thought funds and foundations that donate large amounts to environmental problems would be interested in space debris issues. However, the responses were rejections saying, "Space is outside our scope." Still, in 2015, he raised 800 million yen from investors and established an artificial satellite research and development base.

Losing an artificial satellite to rocket launch failure

In November 2017, Okada lost an artificial satellite for observing micro-debris, developed over about two and a half years, to a rocket launch failure. How can I encourage further investment from investors who knew about the failure? Okada thought, "persuading them is not a good strategy." He visited his investors and honestly explained the facts: satellite launch failures occur at a 1/20 rate; they had prepared their own control center and antennas and reached satellite launch within two years of creating the R&D base in 2015, which is very fast; and no team member had left the company since the launch failure.

In 2018, he obtained his largest funding amount at the time. Fundraising never stalled. The investment until going public ranged widely from organizations like the Innovation Network Corporation of Japan (now the Japan Investment Corporation) and the Mitsubishi Group to individuals like businessman Yusaku Maezawa, who has experience in space travel.

Research and development in five countries, including space roadside services

Even after obtaining funding and designing artificial satellites, it was difficult to find companies willing to sell parts to a startup that could collapse at any time. Even after somehow developing satellites, launching them required overcoming regulatory barriers. In 2016, Okada traveled to 10 countries to obtain permission for the mission of private companies launching artificial satellites into space to remove debris.

Japan was Astroscale's home base, but this was before the Space Activities Act was enforced and so it was no good. Okada was rejected with responses like "there's no licensing system for space debris removal, unlike observation satellites or rocket launches" and "it's too early for commercialization," or met with skepticism like "can such technology really be developed?" Finally, in the UK, the 10th country, he obtained the intention to grant permission. Even with permission, launching outside the manufacturing country required import and export permits.

While Okada traveled to various countries, subsidiaries of Astroscale Holdings were established in the UK in 2017, the US in 2019, Israel in 2020, and France in 2023, with about 650 people working across them. Each subsidiary conducts research and development and business orders. Business orders continue for removing decommissioned artificial satellites and debris already in space, extending satellite lifespans through fuel refueling, and observation and inspection services. Fuel refueling and lifespan extension are like putting gasoline in cars on the road or towing broken-down cars— what is called "space roadside services."

Establishing technology to approach debris moving at 7-8 km per second and operate in its vicinity

Complete information sharing would constitute information leakage from the countries making orders. However, the five subsidiaries are not rivals or competitors. The thinking is that "in space where there are no territories or borders, businesses should also aim for the same goals across multiple countries." The technology for artificial satellites to match speeds with space debris moving at 7-8 km per second in orbit, fly in the same orbit to approach, and conduct operations such as observation in the vicinity is being refined as "Rendezvous and Proximity Operations (RPO) technology." This technology can be applied to various orbital service missions, including debris removal or fuel refueling, while utilizing the knowledge of engineers from each subsidiary.

In 2024, in Phase I of JAXA's "Commercial Removal of Debris Demonstration (CRD2)" project aimed at space debris removal, the artificial satellite ADRAS-J approached within 15 meters of debris (H2A rocket upper stage) orbiting at an altitude of about 600 km. The artificial satellite to capture this debris is scheduled to launch in fiscal year 2027.

Additionally, the ISSA-J1 mission, which approaches and observes large satellite debris, has moved from conducting basic aircraft design to the stage of satellite assembly and operational preparation.

The UK subsidiary signed a contract in July 2024 for the final phase of an in-orbit demonstration of satellite ELSA-M, which removes multiple decommissioned artificial satellites through magnetic capture. The COSMIC mission, which utilizes RPO technology and capture functions to remove two decommissioned UK satellites currently orbiting Earth, is also progressing. The US subsidiary received an order for the APS-R project in September 2023 to develop a prototype satellite that refuels satellites in orbit for the US Space Force.

This series follows the trajectory of "startup" companies that create new businesses from deep tech—scientific discoveries and innovative technologies that solve social issues and have major impacts on our lives and society.