Chinese satellite developer receives $37m angel round

The identity of the investor was not disclosed. The round - which closed in October but has only just been announced - values Chang Guang at more than RMB4 billion, according to a state-owned news outlet in Jilin province, where the company is headquartered. Plans are already in place for a follow-on round.

Founded in 2014, the company claims to be the first commercial remote sensing satellite developer in China. Remote sensing relies on signals such as electromagnetic radiation to detect and classify objects on the earth's surface, in oceans, and in the atmosphere. It is mainly used by aircraft and satellites.

The company’s main business covers the development and in-orbit delivery of satellites, as well as components production. It successfully launched China’s first high-resolution optical earth observation satellite in 2015, followed by another three two years later. As of January 2019, it had launched 12 satellites. The company claims to have the capacity to produce 30 satellites and 200 drones yearly.

Revenue is generated from the sale of the pictures taken by these satellites. Thanks to its close relationship with the local government in Jilin - a government subsidiary is a major shareholder - Chang Guang counts the military as a client, an edge its rivals have yet to acquire. The company wants to expand its customer base to include more private enterprises.

Private space companies have proliferated globally ever since US-based SpaceX began conducting the first private launches and orbital maneuvers in 2010. In China, the trigger came in 2014 when the government formally allowed private companies to provide satellite launch services in a bid to transform the nation into a spaceflight superpower.

Several satellite specialists have received VC funding, including Galaxy Space, which raised A-plus round from the likes of Shunwei Capital, Morningside Venture Capital and IDG, and Comm Satellite, which received over RMB100 million. Both rounds closed last year.

Other space tech investment has largely focused on commercial rocket developers. ISpace raised Series A round led by CDH Investments in January while LandSpace secured RMB300 million in an extended Series B round led by China Growth Capital last November.

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