THE BRIDGE

The Bridge

The Bridge

The Bridge accepts guest contributions from individuals with special insights into technology or the startup space.

http://www.thebridge.jp

Articles

Japan curated news app SmartNews secures $230M in series F at $2B valuation

SHARE:

SmartNews announced on Wednesday that it has raised US$230 million in a Series F round. This brings the company’s total amount raised to date to over US$400 million, and its valuation up to US$2 billion, the highest for a single news app, securing its “double unicorn” status. This follows the close of their previous series E round announced 22 months ago. Participating investors in this round include Princeville Capital and Woodline Partners from the US, JIC Venture Growth Investments, Green Co-Invest Investment, and Yamauchi No.10 Family Office (by Nintendo founder’s family) from Japan in addition to existing investors like ACA Investments and SMBC Venture Capital. According to AppAnnie’s monthly average usage of mobile apps for iOS and Android in the U.S., SmartNews ranked first with 4.7 hours, followed by FlipBoard (4.5 hours) in the second as well as Google News (2.9 hours) and Apple News (0.8 hours). Futhermore, the number of monthly active users has doubled since 2019 (as of 2019, the total number of users in the US and Japan was 20 million). SmartNews plans to use the additional funding to double its headcount in the U.S. (currently 500 staffers globally) and add engineers and leaders, especially in Silicon…

SmartNews announced on Wednesday that it has raised US$230 million in a Series F round. This brings the company’s total amount raised to date to over US$400 million, and its valuation up to US$2 billion, the highest for a single news app, securing its “double unicorn” status. This follows the close of their previous series E round announced 22 months ago.

Participating investors in this round include Princeville Capital and Woodline Partners from the US, JIC Venture Growth Investments, Green Co-Invest Investment, and Yamauchi No.10 Family Office (by Nintendo founder’s family) from Japan in addition to existing investors like ACA Investments and SMBC Venture Capital.

According to AppAnnie’s monthly average usage of mobile apps for iOS and Android in the U.S., SmartNews ranked first with 4.7 hours, followed by FlipBoard (4.5 hours) in the second as well as Google News (2.9 hours) and Apple News (0.8 hours). Futhermore, the number of monthly active users has doubled since 2019 (as of 2019, the total number of users in the US and Japan was 20 million).

SmartNews plans to use the additional funding to double its headcount in the U.S. (currently 500 staffers globally) and add engineers and leaders, especially in Silicon Valley, New York, and San Francisco. The company will also expand its dashboard on the COVID-19 vaccine and its “News From All Sides” feature which gives users easy access to a wide range of political views.

See also:

Teatis closes seed round with $700K, offering meal replacement for diabetic Americans

SHARE:

Launched by Japanese serial entrepreneur Hiroshi Takatoh, Teatis offers meal replacement / superfood powders for diabetic consumers mainly in the US. The company announced on Friday that it has secured $700,000 in a seed round. Participating in the round are Genesia Ventures, Ryo Ishizuka (co-founder of Japanese C2C company Mercari), Takuya Noguchi (founder of Japanese men’s skincare D2C brand Bulk Homme), and seven unnamed angel investors. This round follows the company’s angel round announced in June and brings their total funding amount up to over $1 million. Noguchi participated in the previous round. Focusing on diabetes, one of the most common lifestyle-related diseases among people today, Teatis started offering meal replacements, which contain a lot of superfood ingredients such as seaweed polyphenols, in the US, where about 120 million people are said to have pre- and diabetes. When dissolved in water, it can be drunk as a smoothie or latte with a focus to help curb blood sugar spike, contains no chemicals nor sweeteners but seaweed extract which has been proven to inhibit the absorption of sugar from the intestinal tract and help maintain normal blood sugar levels. Prior to the official launch, Takatoh revealed Teatis already had about 4,000…

Image credit: Teatis

Launched by Japanese serial entrepreneur Hiroshi Takatoh, Teatis offers meal replacement / superfood powders for diabetic consumers mainly in the US. The company announced on Friday that it has secured $700,000 in a seed round. Participating in the round are Genesia Ventures, Ryo Ishizuka (co-founder of Japanese C2C company Mercari), Takuya Noguchi (founder of Japanese men’s skincare D2C brand Bulk Homme), and seven unnamed angel investors. This round follows the company’s angel round announced in June and brings their total funding amount up to over $1 million. Noguchi participated in the previous round.

Focusing on diabetes, one of the most common lifestyle-related diseases among people today, Teatis started offering meal replacements, which contain a lot of superfood ingredients such as seaweed polyphenols, in the US, where about 120 million people are said to have pre- and diabetes. When dissolved in water, it can be drunk as a smoothie or latte with a focus to help curb blood sugar spike, contains no chemicals nor sweeteners but seaweed extract which has been proven to inhibit the absorption of sugar from the intestinal tract and help maintain normal blood sugar levels.

Prior to the official launch, Takatoh revealed Teatis already had about 4,000 pre-registered users in June. Asked these users a try, the company received a lot of feedback that they felt it helped control elevated blood sugar levels. In September, they plan to launch a platform called Teatis RD on Demand, aiming to give users nutrition advice by registered dietitians.

via PR Newswire

Japan biotech firm Spiber nabs $310M to offer protein polymers to apparel brand

SHARE:

Spiber has been developing plant-based artificial protein fiber material called Brewed Protein. The Japanese startup announced on Wednesday that it has secured 24.4 billion yen (about $218 million) in funding from investors including Carlyle, Fidelity International, Baillie Gifford, and the Japanese Government-backed Cool Japan Fund plus 10 billion yen (about $91 million) utilizing a value securitization structure. The structure was arranged by Mitsubishi UFJ Morgan Stanley Securities with participation from unnamed initial lender(s) and investor(s). For the startup, this follows their $240 million funding announced in January which was arranged by the same securities company with participation from The Bank of Tokyo-Mitsubishi UFJ as the initial lender and a credit investor. Spiber was founded in 2007 as a spin-off from the Institute for Advanced Biosciences at Keio University in Tsuruoka City, Yamagata Prefecture. Since its incorporating, the company has to date secured an estimated total amount of over 70 billion yen (about $6.4 million) in past rounds, and is reportedly valued at 133 billion yen ($1.2 billion). Initially focused on spider silk which is said to be the strongest material on earth, the company had been developing a man-made synthetic fiber material called Qmonos. However, although the protein fibroin in…

Brewed Protein
Image credit: Spiber

Spiber has been developing plant-based artificial protein fiber material called Brewed Protein. The Japanese startup announced on Wednesday that it has secured 24.4 billion yen (about $218 million) in funding from investors including Carlyle, Fidelity International, Baillie Gifford, and the Japanese Government-backed Cool Japan Fund plus 10 billion yen (about $91 million) utilizing a value securitization structure.

The structure was arranged by Mitsubishi UFJ Morgan Stanley Securities with participation from unnamed initial lender(s) and investor(s). For the startup, this follows their $240 million funding announced in January which was arranged by the same securities company with participation from The Bank of Tokyo-Mitsubishi UFJ as the initial lender and a credit investor.

Spiber was founded in 2007 as a spin-off from the Institute for Advanced Biosciences at Keio University in Tsuruoka City, Yamagata Prefecture. Since its incorporating, the company has to date secured an estimated total amount of over 70 billion yen (about $6.4 million) in past rounds, and is reportedly valued at 133 billion yen ($1.2 billion).

Initially focused on spider silk which is said to be the strongest material on earth, the company had been developing a man-made synthetic fiber material called Qmonos. However, although the protein fibroin in spider silk is strong, it causes super shrinkage when wet, making it difficult to maintain the dimensional stability of products made from the material. Subsequently the startup succeeded to develop a protein fiber with high dimensional stability by removing the amino acid sequence features causing shrinkage from the fibroin gene, and rebranded Qmonos into Brewed Protein.

The new material is produced by microbial fermentation from plant-based sugars such as glucose and sucrose, which does not require any petroleum-derived material at all. It attracts huge attention because of many use cases: a microplastic-free and non-animal-derived material in the apparel industry, contributing to weight reduction in the logistics industry, a next-generation core material for artificial hair in the medical industry.

The biotech firm is currently working on a joint project with an undisclosed global apparel brand using Brewed Protein. In order to meet the brand’s demand, the firm is planning to launch its first mass-production plant in Rayong, Thailand by the end of this year, followed promptly by another plant in the U.S.

via PR Times

Japanese robotics startup Telexistence closes series A round with $40M+

SHARE:

Tokyo-based Telexistence, the Japanese startup developing remote-controlled robots, announced today that it has secured about 2.2 billion yen (about $20 million US) in a series A2 round. Participating investors include Airbus Ventures, KDDI Open Innovation Fund (KOIF), Deepcore, UTokyo Innovation Platform (UTokyo IPC), and several unnamed investors, in addition to Monoful, a digital transformation-focused subsidiary of global logistics giant GLP. This follows a previous round (estimated to be series A1) in December of 2018 when some of the investors participating in the latest round such as KOIF, UTokyo IPC, Deepcore, and Monoful also participated. With the Series A1 (previous round) and A2 (the latest round) rounds combined, the company has secured about 4.5 billion yen (over $40 million US) in a series A round. Telexistence has been developing tele-controlled robots using a variety of technologies including tele-presence, robotics, communications, virtual reality (VR), haptics, and artificial intelligence (AI). They plan to use the funds to expand its product development team as well as accelerating product development and implementation to the expanding customer base in the retail and logistics sectors. The company has partnered with Monoful to develop the Augmented Workforce Platform (AWP) for logistics facility operations. AWP allows operators to control…

The Model-T robot
Image credit: Telexistence

Tokyo-based Telexistence, the Japanese startup developing remote-controlled robots, announced today that it has secured about 2.2 billion yen (about $20 million US) in a series A2 round. Participating investors include Airbus Ventures, KDDI Open Innovation Fund (KOIF), Deepcore, UTokyo Innovation Platform (UTokyo IPC), and several unnamed investors, in addition to Monoful, a digital transformation-focused subsidiary of global logistics giant GLP.

This follows a previous round (estimated to be series A1) in December of 2018 when some of the investors participating in the latest round such as KOIF, UTokyo IPC, Deepcore, and Monoful also participated. With the Series A1 (previous round) and A2 (the latest round) rounds combined, the company has secured about 4.5 billion yen (over $40 million US) in a series A round.

Telexistence has been developing tele-controlled robots using a variety of technologies including tele-presence, robotics, communications, virtual reality (VR), haptics, and artificial intelligence (AI). They plan to use the funds to expand its product development team as well as accelerating product development and implementation to the expanding customer base in the retail and logistics sectors.

The company has partnered with Monoful to develop the Augmented Workforce Platform (AWP) for logistics facility operations. AWP allows operators to control robots installed in warehouses via the Internet and participate in tasks such as loading and unloading pallets while operators are working from home.

The company also announced that it has tied up with Japanese office furniture giant Okamura Corporation (TSE:7984) for joint research and development of fixture products optimized for carrying and displaying by robots.

Japan crowdfunding site Makuake sets up shop in Korea, targets $13M+ in deals by mid-2022

SHARE:

Japanese crowdfunding platform Makuake (TSE:4479) announced on Thursday that it has set up a subsidiary and an office in Korea as the first one outside its home turf. They expect to help Korean companies expand into the Japanese market by encouraging the latter to launch campaigns on the platform. They appointed their global team manager MiRyeong Kim as the head of a local subsidiary in Korea. Prior to Makuake, Kim finished her master’s degree in economics at Kyoto University and then participated in establishing an overseas subsidiary of CyberZ. She won the Newcomer Award at CyberAgent (TSE:4751), the former parent company of the crowdfunding platform. She contributed to founding the global team at Makuake, having been focused on curating overseas projects from Taiwan, Korea, and China. In 2017, Makuake partnered with the Korea Trade-Investment Promotion Agency (KOTRA) to help curate applicants for crowdfunding campaigns from Korea. Subsequently, the company partnered with Korean counterpart Wadiz to send campaign hosts to each other in 2018. It has helped about 600 projects from Korea including Bluetooth-compatible speaker table Mellow (securing about $219,000 through two campaigns) and laser rangefinder VH-80 (over $91,000). Makuake targets over $13 million in transacting crowdfunding campaigns from Korea by…

MiRyeong Kim, Head of Makuake Korea
Image credit: Makuake

Japanese crowdfunding platform Makuake (TSE:4479) announced on Thursday that it has set up a subsidiary and an office in Korea as the first one outside its home turf. They expect to help Korean companies expand into the Japanese market by encouraging the latter to launch campaigns on the platform. They appointed their global team manager MiRyeong Kim as the head of a local subsidiary in Korea.

Prior to Makuake, Kim finished her master’s degree in economics at Kyoto University and then participated in establishing an overseas subsidiary of CyberZ. She won the Newcomer Award at CyberAgent (TSE:4751), the former parent company of the crowdfunding platform. She contributed to founding the global team at Makuake, having been focused on curating overseas projects from Taiwan, Korea, and China.

In 2017, Makuake partnered with the Korea Trade-Investment Promotion Agency (KOTRA) to help curate applicants for crowdfunding campaigns from Korea. Subsequently, the company partnered with Korean counterpart Wadiz to send campaign hosts to each other in 2018. It has helped about 600 projects from Korea including Bluetooth-compatible speaker table Mellow (securing about $219,000 through two campaigns) and laser rangefinder VH-80 (over $91,000).

Makuake targets over $13 million in transacting crowdfunding campaigns from Korea by June next year. Earlier this year, the company partnered with US-based crowdfunding giant Indiegogo to help Japanese startups expand into the US and global markets.

Japanese public blockchain developer Stake Technologies secures $10M

SHARE:

See the original story in Japanese. Stake Technologies, the leading developer of Made-in-Japan public blockchains such as Plasm Network and Shiden Network, announced today that it has secured 1.1 billion yen (about $10 million US) from Fenbushi Capital, Gumi Crypto, East Ventures, and other notable investors. Since its founding in 2019, the company has been conducting consistent research and development of public blockchains, having de and developing Japan’s first public blockchains, Plasm Network and Shiden Network. Japan lags far behind Europe, the U.S. and China in public blockchain, a technology that will be the foundation for the next generation of industry. However, the company has the potential to break through that status quo. The investors in this round include some of the global leading crypto and blockchain VCs from the US, China, and Europe, as well as several leading Japanese VCs and angels. From Japan, East Ventures, Gumi Crypto, Hotlink founder Yuki Uchiyama, Keio University economics professor Toyotaka Sakai, and former Sony chairman and CEO Nobuyuki Idei participated. The funds raised will be used for accelerating product development, hiring new talents as well as expending public blockchain ecosystem.

See the original story in Japanese.

Stake Technologies, the leading developer of Made-in-Japan public blockchains such as Plasm Network and Shiden Network, announced today that it has secured 1.1 billion yen (about $10 million US) from Fenbushi Capital, Gumi Crypto, East Ventures, and other notable investors.

Since its founding in 2019, the company has been conducting consistent research and development of public blockchains, having de and developing Japan’s first public blockchains, Plasm Network and Shiden Network. Japan lags far behind Europe, the U.S. and China in public blockchain, a technology that will be the foundation for the next generation of industry. However, the company has the potential to break through that status quo.

The investors in this round include some of the global leading crypto and blockchain VCs from the US, China, and Europe, as well as several leading Japanese VCs and angels. From Japan, East Ventures, Gumi Crypto, Hotlink founder Yuki Uchiyama, Keio University economics professor Toyotaka Sakai, and former Sony chairman and CEO Nobuyuki Idei participated.

The funds raised will be used for accelerating product development, hiring new talents as well as expending public blockchain ecosystem.

Parallel, Japan’s answer to Discord, secures $11M series B for global expansion

SHARE:

Tokyo-based Parallel, the Japanese startup behind a voice chat app under the same name, announced today that it has secured 1.2 billion yen (about $11 million US) in a series B round. Participating investors are Jafco Group (TSE:8595), KDDI Open Innovation Fund, Anri, W ventures, and Mitsubishi UFJ Capital. The startup will use the funds to strengthen engineering and marketing teams. Founded in July of 2017 as its previous name of React, Parallel has secured a pre-series A and series A round without disclosing detailed terms to date. They launched the Parallel app back in August of 2019 which is so to speak the mobile-optimized version of Discord and targets mobile game users. It boasts a cumulative total of one million registered users and over 400 million minutes of total monthly talk time. When it comes to a voice chat app for gamers, many of our readers may recall Discord but their users had been forced to use a web browser that were not guaranteed to work properly until it launched an official mobile app about half a year ago. In addition, Discord has some problems such as difficulty in understanding the status of other users as well as inability…

Image credit: Parallel

Tokyo-based Parallel, the Japanese startup behind a voice chat app under the same name, announced today that it has secured 1.2 billion yen (about $11 million US) in a series B round. Participating investors are Jafco Group (TSE:8595), KDDI Open Innovation Fund, Anri, W ventures, and Mitsubishi UFJ Capital. The startup will use the funds to strengthen engineering and marketing teams.

Founded in July of 2017 as its previous name of React, Parallel has secured a pre-series A and series A round without disclosing detailed terms to date. They launched the Parallel app back in August of 2019 which is so to speak the mobile-optimized version of Discord and targets mobile game users. It boasts a cumulative total of one million registered users and over 400 million minutes of total monthly talk time.

Image credit: Parallel

When it comes to a voice chat app for gamers, many of our readers may recall Discord but their users had been forced to use a web browser that were not guaranteed to work properly until it launched an official mobile app about half a year ago. In addition, Discord has some problems such as difficulty in understanding the status of other users as well as inability to hear the game sound when talking with someone.

Parallel’s users have been mainly Generation Z and gamers, but the company plans to create a hangout space where users can enjoy content while sharing time with friends, family, and loved ones in everyday situations such as movies, live performances, listening to music, and shopping. In addition to the development of new functions, the company will also work on strategic alliances with entertainment companies and full-scale overseas expansion.

Secai Marche nabs $1.4M to extend food supply chain connecting farmers with F&B in Asia

SHARE:

Tokyo- / Kuala Lumpur-based Secai Marche, the Japanese startup behind a shared food supply chain for the Southeast Asian market under the same name, announced on Tuesday that it has secured 150 million yen (about $1.4 million US) from Beyond Next Ventures and Rakuten Ventures. The company plans to use the funds to strengthen its fresh food fulfillment service, hire new talents, and enhance its marketing effort. Since its launch back in July of 2018, the company has been offering a cold supply chain connecting farmers and food producers with F&B businesses in the Southeast Asian market, especially optimized for the delivery of low-volume and high-mix orders. Supply chains for fresh produce in the region is usually operated by the supplier side, which are optimized for bulk deliveries and therefore difficult to use it for small restaurants which typically ask for small orders or niche needs. The company wants to solve the problem by building a shared supply chain allowing several different food suppliers to use for delivery. The company says more than 100 farmers and food producers in Japan and ASEAN as well as more than 300 restaurants and hotels are using the 20-month-old platform. In view of optimized…

The Secai Marche team
Image credit: Secai Marche

Tokyo- / Kuala Lumpur-based Secai Marche, the Japanese startup behind a shared food supply chain for the Southeast Asian market under the same name, announced on Tuesday that it has secured 150 million yen (about $1.4 million US) from Beyond Next Ventures and Rakuten Ventures. The company plans to use the funds to strengthen its fresh food fulfillment service, hire new talents, and enhance its marketing effort.

Since its launch back in July of 2018, the company has been offering a cold supply chain connecting farmers and food producers with F&B businesses in the Southeast Asian market, especially optimized for the delivery of low-volume and high-mix orders.

Supply chains for fresh produce in the region is usually operated by the supplier side, which are optimized for bulk deliveries and therefore difficult to use it for small restaurants which typically ask for small orders or niche needs. The company wants to solve the problem by building a shared supply chain allowing several different food suppliers to use for delivery.

The company says more than 100 farmers and food producers in Japan and ASEAN as well as more than 300 restaurants and hotels are using the 20-month-old platform.

In view of optimized fresh food supply chain startups in the region, Thailand’s Freshket raised US$3 million in a Series A round last year, Y Combinator Alumni Eden Farm from Indonesia won a pre-Series A round in March this year, and Singapore-based Glife raised US$1.18 million in a seed round in 2019.

via PR Times

UTokyo-related VC firm UTEC raises $275M fifth fund, launches acceleration program

SHARE:

The University of Tokyo Edge Capital Partners (UTEC) announced on Monday that it has launched its fifth fund. The firm made the first close of the fund which is eventually expected to secure up to 30 billion yen (about $275 million US). The fund’s investors have not been disclosed but Nikkei says the majority of them are institutional investors including sovereign wealth funds from Southeast Asia. The fund’s ticket size is up to 2.5 billion yen ($22.9 million US) per investment and company. Since its launch back in 2004, UTEC has been running five funds worth 85 billion yen ($780 million US) in the total commitment amount. It has invested in more than 110 companies, 13 of which have IPO-ed and 12 of which have been acquired by other companies. The total market cap of the IPO-ed 13 companies reached 1.5 trillion yen ($13.7 billion US) as of December 2020. The fund can invest in startups at various stages while we may recall recent funding from the fund such as Startbahn (blockchain-based certificate issuing for art) and Kuzen (no-code interactive AI platform). UTEC also announced that it has launched the UTEC Founders Program (UFP), an open-ended support program for startups…

The University of Tokyo Edge Capital Partners (UTEC) announced on Monday that it has launched its fifth fund. The firm made the first close of the fund which is eventually expected to secure up to 30 billion yen (about $275 million US). The fund’s investors have not been disclosed but Nikkei says the majority of them are institutional investors including sovereign wealth funds from Southeast Asia. The fund’s ticket size is up to 2.5 billion yen ($22.9 million US) per investment and company.

Since its launch back in 2004, UTEC has been running five funds worth 85 billion yen ($780 million US) in the total commitment amount. It has invested in more than 110 companies, 13 of which have IPO-ed and 12 of which have been acquired by other companies. The total market cap of the IPO-ed 13 companies reached 1.5 trillion yen ($13.7 billion US) as of December 2020. The fund can invest in startups at various stages while we may recall recent funding from the fund such as Startbahn (blockchain-based certificate issuing for art) and Kuzen (no-code interactive AI platform).

UTEC also announced that it has launched the UTEC Founders Program (UFP), an open-ended support program for startups in the science and technology fields. The program consists of two tracks: the Equity Track, which provides up to 100 million yen in equity investment, and the Grant Track, which provides up to 5 million yen in grant. Equity Track applications are accepted at all times while Grant Track ones will be accepted from June 15 to July 31.

Japan’s Axelspace nabs $24M series C, all set to put 10 nanosats into orbits

SHARE:

Axelspace Holdings, the parent company of nano-satellite developer Axelspace, announced on Friday that it has secured approximately 2.58 billion yen (about $23.6 million US) in a Series C round. Participating invesotors are Sparx Innovation for Future, Sumitomo Mitsui Trust Investment, JP Investment, 31 Ventures-Global Brain Growth I LLC (jointly operated by Mitsui Fudosan and Global Brain), Kyocera, and Mitsubishi UFJ Capital. For the satellite startup, this follows their Series A round in September 2015 and Series B round in December 2018. The 31 Ventures-Global Brain-Growth I fund participated in the series B round as well. The latest round brought the company’s total funding sum to date up to more than 7 billion yen (about $64 million US). Axelspace was spun off from the University of Tokyo and incorporated as a company in 2008. The company has been developing small and inexpensive satellites weighing some 60 kilograms, and launched satellites outsourced from Japanese weather company Weathernews (TSE:4825). Leveraging these low-earth orbit (LEO) satellites, Axelspace plans to collect weather and terrain data to sell to governmental organizations and private businesses. Launching a conventional satellite usually costs tens of millions of dollars, but the cost of a nano-satellites can be reduced to less…

The Axelspace management team. From left: CTO Naoki Miyashita, CSO Yoshihiro Ohta, CBO Yasunori Yamazaki, CEO Tomoya Nakamura, CPO Yusuke Nakanishi, and CFO / CHORO Hiroki Aomoto
Image credit: Axelspace

Axelspace Holdings, the parent company of nano-satellite developer Axelspace, announced on Friday that it has secured approximately 2.58 billion yen (about $23.6 million US) in a Series C round. Participating invesotors are Sparx Innovation for Future, Sumitomo Mitsui Trust Investment, JP Investment, 31 Ventures-Global Brain Growth I LLC (jointly operated by Mitsui Fudosan and Global Brain), Kyocera, and Mitsubishi UFJ Capital.

For the satellite startup, this follows their Series A round in September 2015 and Series B round in December 2018. The 31 Ventures-Global Brain-Growth I fund participated in the series B round as well. The latest round brought the company’s total funding sum to date up to more than 7 billion yen (about $64 million US).

Axelspace was spun off from the University of Tokyo and incorporated as a company in 2008. The company has been developing small and inexpensive satellites weighing some 60 kilograms, and launched satellites outsourced from Japanese weather company Weathernews (TSE:4825). Leveraging these low-earth orbit (LEO) satellites, Axelspace plans to collect weather and terrain data to sell to governmental organizations and private businesses. Launching a conventional satellite usually costs tens of millions of dollars, but the cost of a nano-satellites can be reduced to less than $10 million, making it possible to build a constellation system for earth observation with multiple nano-satellites.

In 2015 the company announced AxelGlobe, the earth observation infrastructure which will provide imagery of more than half of the planet’s dry land once every single day. The infrastructure is composed of several nano-satellites, five of which have already been launched, and the goal is to have ten in the future. Since the latest round has paved the way for the initial target of 10 satellites, the company established the AxelGlobe Business Unit to promote the widespread use of satellite data and implement it into many aspects of our society.