Aalyria, a startup spun out from Google in 2022 focused on high-speed communication networks, raised $100 million in a funding round led by Battery Ventures. This raised the company’s valuation to $1.3 billion.
Aalyria’s software helps networks deliver better service across land, at sea and in space. This funding round comes as the U.S. government boosts its spending on defense technology and national security satellites in an attempt to outpace China.
Google is retaining a stake in Aalyria. Battery Ventures led the new funding round, joined by firms including J2 Ventures and DYNE.
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Michael Brown, a general partner at Battery, said SpaceX’s success in commercializing lower earth orbit satellites with Starlink has “stoked competitive fears of satellite vendors.” Starlink has been obtaining government contracts and winning over consumers, particularly in areas that aren’t well served by traditional high-speed internet. Rivals like Eutelsat, Amazon and others are investing heavily in their own services.
“They love Starlink but want alternatives, too,” Brown said. “This is where Aalyria comes into play. When you have a diversity of satellite platforms, including in lower and mid-earth orbit, the ability to route traffic between them has been nearly impossible. But they provide a seamless networking layer.”
Aalyria has already obtained contracts or research funding from partners, including Telesat, the U.S. Air Force, NASA, the Defense Department’s Defense Innovation Unit, the European Space Agency and other government offices.
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When a natural disaster takes out cell towers on the ground, Aalyria’s Spacetime software allows a satellite communications network to move to cover the affected location within seconds rather than days, according to founder and technology chief Brian Barritt. In space, the company’s software directs satellites in a constellation to automatically reconfigure to fill gaps that occur when others are degraded for any reason.
Barritt mentioned that one challenge in the market is that companies building space-based networks have so much at stake, and may want to build network orchestration solutions from scratch. It takes time to gain their confidence, he said, but “once they realize the benefit in being able to have their network operating system federate with others, orchestrate networks of networks, and monetize unused capacity, that tips the scales in our favor.”
Aalyria also sells Tightbeam, a laser-communication system that can be affixed to a ship, a plane or other aircraft, enabling it to transmit data over distances longer than 100 kilometers, and at rates comparable to fiber internet cable.