ABL Space RS1 rocket shortly after launch

Regulatory filing reveals ABL Space Systems targeting $100M in new funding

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ABL Space RS1 rocket shortly after launch

Image Credits: ABL Space Systems (opens in a new window)

ABL Space Systems is looking to raise up to $100 million in new funding, and has just closed over $40 million, according to a new filing with the U.S. Securities and Exchange Commission. The company filed the Form D on December 29.

It’s the first indication that ABL has raised venture funding since October 2021, when the launch company closed $200 million at a $2.4 billion valuation. Since its founding in 2017, ABL has raised $420 million from investors, including T. Rowe Price, Fidelity Management and Lockheed Martin Ventures.

ABL declined to respond to TechCrunch’s request for comment.

ABL is developing an 88-foot-tall, two-stage launch vehicle called RS1 and an integrated ground system architecture called GS0. Together, they’re meant to provide a mobile, all-in-one launch system. In a blog post, CEO Harry O’Hanley sketched a pretty bright future for the integrated architecture: “Imagine this: a convoy of container trucks arrive at a parking lot,” he wrote. “A few days later, it’s an orbital launch site. That’s RS1 and GS0.”

In a separate, more recent post published on December 19, O’Hanley and ABL President Dan Piemont issued a strident call for increased domestic launch resiliency, particularly at the launch site layer: “Today, there are only four operational U.S. launch sites and three controlled by allies. Each site is strong, capable and operated by the world’s leading launch experts. However, the overall launch site layer represents a weak link.”

Unsurprisingly, they argue that GS0 is the solution to this vulnerability, offering both a launch mount and a site system in a “proliferated” architecture.

The company’s message is clearly already resonating; in addition to the private markets, ABL has also scored considerable contracts from the U.S. Space Force, with the company landing a $60 million contract last year to build out “responsive launch” capabilities, or launches at short-notice.

ABL has been laying relatively low since its first launch attempt a year ago, which resulted in the rocket crashing back to Earth around 10 seconds after liftoff. In October, around 10 months after that mission, O’Hanley said that the company had made major upgrades to both the rocket and the ground system in advance of its next attempt. The company has not provided any updates on the timeline for the second flight test.

“It was not in our plans to have RS1 grounded for most of 2023,” O’Hanley wrote after the launch. “Our efforts this year were far away from the pad lights.”

ABL Space RS1 rocket shortly after launch

Regulatory filing reveals ABL Space Systems targeting $100M in new funding

by with No Comment Tech

ABL Space RS1 rocket shortly after launch

Image Credits: ABL Space Systems (opens in a new window)

ABL Space Systems is looking to raise up to $100 million in new funding, and has just closed over $40 million, according to a new filing with the U.S. Securities and Exchange Commission. The company filed the Form D on December 29.

It’s the first indication that ABL has raised venture funding since October 2021, when the launch company closed $200 million at a $2.4 billion valuation. Since its founding in 2017, ABL has raised $420 million from investors, including T. Rowe Price, Fidelity Management and Lockheed Martin Ventures.

ABL declined to respond to TechCrunch’s request for comment.

ABL is developing an 88-foot-tall, two-stage launch vehicle called RS1 and an integrated ground system architecture called GS0. Together, they’re meant to provide a mobile, all-in-one launch system. In a blog post, CEO Harry O’Hanley sketched a pretty bright future for the integrated architecture: “Imagine this: a convoy of container trucks arrive at a parking lot,” he wrote. “A few days later, it’s an orbital launch site. That’s RS1 and GS0.”

In a separate, more recent post published on December 19, O’Hanley and ABL President Dan Piemont issued a strident call for increased domestic launch resiliency, particularly at the launch site layer: “Today, there are only four operational U.S. launch sites and three controlled by allies. Each site is strong, capable and operated by the world’s leading launch experts. However, the overall launch site layer represents a weak link.”

Unsurprisingly, they argue that GS0 is the solution to this vulnerability, offering both a launch mount and a site system in a “proliferated” architecture.

The company’s message is clearly already resonating; in addition to the private markets, ABL has also scored considerable contracts from the U.S. Space Force, with the company landing a $60 million contract last year to build out “responsive launch” capabilities, or launches at short-notice.

ABL has been laying relatively low since its first launch attempt a year ago, which resulted in the rocket crashing back to Earth around 10 seconds after liftoff. In October, around 10 months after that mission, O’Hanley said that the company had made major upgrades to both the rocket and the ground system in advance of its next attempt. The company has not provided any updates on the timeline for the second flight test.

“It was not in our plans to have RS1 grounded for most of 2023,” O’Hanley wrote after the launch. “Our efforts this year were far away from the pad lights.”

Arnergy

Arnergy, which provides solar power systems to homes and businesses in Nigeria, raises $3M

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Arnergy

Image Credits: Arnergy

Arnergy, a Nigerian clean tech startup that deals in distributed renewable energy products and solutions, has raised $3 million in new financing. The bridge round was financed by All On, a Shell-backed off-grid energy impact investment company.

The financing comes five years after Arnergy, a provider of solar power systems to homes and businesses, secured a $9 million Series A round in 2019. All On, along with other firms, including Bill Gates’ Breakthrough Energy Ventures, ElectriFI, and Norfund, participated as investors in the round.

Founded in 2013 by Femi Adeyemo and Kunle Odebunmi, Arnergy was launched as a provider of sustainable energy services intended to deliver clean and reliable energy for businesses or homes. The company’s energy systems are tailored to tackle intermittent and grid unreliability issues, enabling residential customers and businesses across hospitality, education, finance, agriculture, and healthcare to access and install affordable and reliable distributed energy systems.

Before its Series A financing, Arnergy had installed over 2MW of electricity for more than 2,000 clients. Alongside the $4 million debt financing obtained over the past few years from both local lenders, such as Nigeria’s Bank of Industry, and foreign ones, the company’s investments have led to the deployment of over 7MW of solar PV systems and the installation of over 20MW of lithium battery energy storage solutions (BESS).

Despite the strides made, significant challenges persist in the sector. Nigeria has a grid capacity of 12 GW, with only a fraction of this accessible to consumers, meaning many Nigerians still lack reliable access to electricity. The majority rely on self-generated power through petrol or diesel generators, primarily sourced from fossil fuels, and that poses health and environmental hazards. The recent removal of fuel subsidies, escalating diesel prices, and challenging macroeconomic conditions underscore the urgent need for energy cost savings among retail and business customers. While solar systems are the most common alternative, there remains a demand-supply gap that Arnergy aims to address, spurred by the prevailing dynamics in the local energy sector.

“I think one of the things that has been very important to Arnergy has been capital efficiency. We didn’t just want to raise for raising sake,” CEO Adeyemo said in an interview with TechCrunch. “We were waiting for some triggers like the fuel subsidy removal, closeness to grid parity based on the price on the grid and also diesel prices to go back into the market. So the combination of all of those more or less gave us signals based on triggers we set when we last raised money.”

Adeyemo emphasizes that the Nigerian market has reached a stage where solar electricity is becoming cost-competitive compared to grid power. In 2019, many in Nigeria didn’t view solar systems as economically viable. However, current price points for petrol, diesel, and grid electricity drive increased demand for solar systems. Despite challenges posed by exchange rate losses, there is a global decrease in solar panel and lithium battery prices. Adeyemo notes that lithium prices would have been significantly lower in Nigeria without the impact of exchange rate fluctuations. He points out that the cost per kilowatt-hour of lithium batteries was around $400 in early 2023, compared to $250 per kilowatt-hour today.

African climate startups set to gain ground as VC funding shifts their way

This shift in market dynamics prompted Arnergy to raise new funding for scaling up operations and change its sales approach. Since its inception, the company has derived 75% of its business from outright sales rather than leases. Adeyemo explains that many customers found long-term leases, where pricing is amortized over a period, more expensive than petrol or diesel generators. However, with the significant increase in diesel prices, up to 5x higher, long-term leases now make more economic sense than they did in the past.

“We are now bullish on leases given that cost competitiveness now makes sense. We’ve tested and tried it, and the chance of default is now lower because of the monthly expense of petrol or diesel. You can more or less switch that for solar. It wasn’t the case four years ago where you will be paying higher even if you’re on a five-year lease to own solar.”

Arnergy intends to capitalize on this trend in the foreseeable future. Nigeria, its primary market, continues to face challenges with stable electricity, with little likelihood of significant improvements in the near term. Additionally, it’s noteworthy that even in regions like Europe, the U.S., or Australia, where the grid reliability is high, there’s a growing trend toward solar energy adoption despite the removal of rebates in certain instances.

To that end, the 10-year-old clean tech company, which has witnessed a 10x revenue growth over the last 5 years, plans to maintain its service provision across all 36 states where it operates in Nigeria through min-grid developers. Additionally, Arnergy is preparing to raise its Series B round, which is scheduled to close this quarter. The upcoming funding round aims to facilitate further expansion of its operations and accelerate the adoption of its renewable energy products and solutions within and outside Nigeria.

“We are proud of our partnership with Arnergy over the past years. With this partnership, we have been able to achieve some of our goals to empower communities and create a cleaner future for Nigeria,” said Caroline Eboumbou, All On CEO, in a statement. “Arnergy exemplifies the impact we strive to achieve at All On, innovative solutions, unwavering commitment to sustainability, and a relentless focus on social impact. This investment reaffirms our confidence in their ability to scale their operations and accelerate the adoption of clean energy in Nigeria and beyond.”

Portal Space Systems render of satellite orbiting Earth

Portal Space Systems unveils Supernova, an ultra-mobile spacecraft

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Portal Space Systems render of satellite orbiting Earth

Image Credits: Portal Space Systems (opens in a new window)

The era of stationary spacecraft may soon be over.

Portal Space Systems, a company headed by propulsion expert Jeff Thornburg, is looking to help usher in a new renaissance in in-space transportation with its ultra-mobile Supernova satellite bus. Think of it as maneuverability-as-a-service — tech that could propel transfers from low Earth orbit to geostationary orbit in a matter of hours.

The 500-kg Supernova is designed to be payload agnostic and survive on orbit for at least five years while being continuously maneuvered, the company said. It’s a far cry from legacy spacecraft, which are built to carry only as much propulsion as will be needed to maintain their orbit. Portal’s designed a novel propulsion system, called solar-thermal propulsion, that will produce a massive delta-V of 6 kilometers per second, to enable rapid transfer to cislunar space, or as maneuverable assets to support national security missions.

Portal was founded by space industry veterans Jeff Thornburg, COO Ian Vorbach and VP of engineering Prashaanth Ravindran. Thornburg’s career reads like a history of the space industry writ large. Spanning nearly 30 years, it includes stints at basically ever major aerospace organization: as a military officer in the Air Force; working on liquid rocket engine tech at Aerojet; five years at SpaceX, where he eventually became the second VP of propulsion engineering; working with storied entrepreneur Paul Allen at Stratolaunch; and as a director at Amazon’s Project Kuiper.

“Then I decided I didn’t really want the big company lifestyle and really wanted to dig in on some problems that were not being addressed by any other business, and so my co-founders and I founded Portal Space Systems in November of 2021,” he said. “It’s the only time I feel like I’ve been able to predict the future, even close.”

Given that he has spent most of his career in launch vehicle development and propulsion, he started thinking about what would come next in the industry after SpaceX cracked the code on affordable, rapid, reliable launch. He noticed other trends, too: With more spacecraft launched to orbit than ever before, on-orbit collisions become more likely. On the defense side, Thornburg also started seeing more of a national security interest in responsive space capabilities and the ability for satellites to maneuver “without regret.”

But satellites aren’t designed for moving around a lot in orbit; in general, they are launched with enough on-board propulsion to keep them in their intended orbit, not to dodge other objects, and certainly not with out delta-V capability to go to higher orbit. Supernova is part of a new generation of spacecraft that are looking to change that.

The company has developed Supernova’s propulsion system in-house. The solar-thermal system leverages legacy tech designed by NASA and the Department of Defense, while innovating specific subsystems to optimize for mission performance. For example, the company is bringing a proprietary heat exchanger to that solar thermal propulsion system to deliver even higher performance over a longer lifespan.

“I think the big forcing function here for commercial is just the proliferation of these LEO constellations that they have to maneuver around, and the forcing function for the DOD is China and the future engagement that people believe we’re going to have with them over Taiwan and other issues. Both of those things have come together at the same time, which has created the opportunity that I was hoping for, but didn’t quite predict it being this significant.”

Portal has raised an undisclosed amount of venture funding from unnamed backers, and the first Supernova development is fully funded, the company said. The team has also won over $3 million across five awards from the Space Force and the DOD, including a direct-to-phase II SBIR that’s focused specifically on developing responsive space operations.

Portal is aiming to conduct an in-flight demonstration in late 2025 or early 2026. But before that mission even launches, Thornburg said the startup is looking to scale its team — which stands at around 25 people, but anticipates will swell to up to 200 in 25 years — and grow manufacturing to support the production of multiple spacecraft per year after that first demonstration.

UnitedHealth CEO tells Senate all systems now have multi-factor authentication after hack

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UnitedHealth CEO Andrew Witty testifies before the Senate Finance Committee on Capitol Hill on May 1, 2024 in Washington, DC.

Image Credits: Kent Nishimura / Getty Images

UnitedHealth Group Chief Executive Officer Andrew Witty told senators on Wednesday that the company has now enabled multi-factor authentication on all the company’s systems exposed to the internet in response to the recent cyberattack against its subsidiary Change Healthcare.

The lack of multi-factor authentication was at the center of the ransomware attack that hit Change Healthcare earlier this year, which impacted pharmacies, hospitals and doctors’ offices across the United States. Multi-factor authentication, or MFA, is a basic cybersecurity mechanism that prevents hackers from breaking into accounts or systems with a stolen password by requiring a second code to log in.

In a written statement submitted on Tuesday ahead of two congressional hearings, Witty revealed that hackers used a set of stolen credentials to access a Change Healthcare server, which he said was not protected by multi-factor authentication. After breaking into that server, the hackers were then able to move into other company systems to exfiltrate data, and later encrypt it with ransomware, Witty said in the statement.

Today, during the first of those two hearings, Witty faced questions about the cyberattack from senators on the Finance Committee. In response to questions by Sen. Ron Wyden, Witty said that “as of today, across the whole of UHG, all of our external-facing systems have got multi-factor authentication enabled.”

“We have an enforced policy across the organization to have multi-factor authentication on all of our external systems, which is in place,” Witty said.

When asked to confirm Witty’s statement, UnitedHealth Group’s spokesperson Anthony ​​Marusic told TechCrunch that Witty “was very clear with his statement.”

Witty blamed the fact that Change Healthcare’s systems had not yet been upgraded after UnitedHealth Group acquired the company in 2022.

“We were in the process of upgrading the technology that we had acquired. But within there, there was a server, which I’m incredibly frustrated to tell you, was not protected by MFA,” Witty said. “That was the server through which the cybercriminals were able to get into Change. And then they led off a ransomware attack, if you will, which encrypted and froze large parts of the system.”

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Do you have more information about the Change Healthcare ransomware attack? From a non-work device, you can contact Lorenzo Franceschi-Bicchierai securely on Signal at +1 917 257 1382, or via Telegram, Keybase and Wire @lorenzofb, or email. You also can contact TechCrunch via SecureDrop.

Witty also said that the company is still working on understanding exactly why that server did not have multi-factor authentication enabled.

Wyden criticized the company’s failure to upgrade the server. “We heard from your people that you had a policy, but you all weren’t carrying it out. And that’s why we have the problem,” Wyden said.

UnitedHealth has yet to notify people that were impacted by the cyberattack, Witty said during the hearing, arguing that the company still needs to determine the extent of the hack and the stolen information. As of now, the company has only said that hackers stole personal and health information data of “a substantial proportion of people in America.”

Last month, UnitedHealth said that it paid $22 million to the hackers who broke into the company’s systems. Witty confirmed that payment during the Senate hearing.

On Tuesday afternoon, Witty also appeared in a House Energy and Commerce committee, where he revealed that “maybe a third” of Americans had their personal health information stolen by the hackers