Sierra Space CEO talks IPO plans, satellite launches and Dream Chasers | Wilnesh News

Sierra Space is expanding its satellite offerings as it prepares for the first flight of its space plane and an initial public offering as early as next year.

Ahead of the much-anticipated solar eclipse, the commercial space unicorn has launched its aptly named Eclipse family of satellite buses (the primary structure of satellites) to serve missions ranging from near-Earth to cis-lunar orbit.

“We’ve actually been waiting for six months, so it’s (a name) that we’ve definitely considered,” Sierra Space CEO Tom Vice told CNBC’s “Manifest Space” podcast. “I think it’s a perfect name because I think it’s going to change everything in terms of the affordability of building next-generation buses for next-generation satellites.”

Sierra Space, which was valued at $5.3 billion as of September, was spun out of defense contractor Sierra Nevada Corporation three years ago. The independent subsidiary celebrates three decades of aerospace heritage and is the result of an ambitious early bet by SNC’s billionaire couple, Fatih and Eren Ozmen.

Sierra Space offers a diverse portfolio of space and defense technologies spanning space transportation, space habitation, propulsion and satellites. It is perhaps best known for the Dream Chaser, a reusable space plane contracted by NASA to fly cargo resupply missions to the International Space Station and eventually carry humans into and out of orbit.

It is also working with Jeff Bezos’ Blue Origin to develop a commercial space station called Orbital Reef, and in January won a high-profile $740 million contract to develop a range of missile tracking for the U.S. satellite

The Eclipse product brings it further into the spacecraft subsystems business.

As for the Dream Chaser, Vice said he is “very confident” the aircraft will make its first flight in the fourth quarter of this year. He added that the space plane passed its first phase of environmental testing in March and said the company relied on NASA’s manifesto and was working with the FAA as it will deliver cargo to the International Space Station in its first demonstration. To obtain a re-entry permit.

“Dream Chaser is also a vehicle that can stay in orbit for a year and become an orbiting space station for microgravity research,” Vice said of the development and manufacturing opportunities he and the company are betting will be realized in low-Earth orbit. , making the business case for spaceplanes and their space habitats.

Sierra Space has identified four areas where it believes microgravity could disrupt Earth’s industry: stem cells, oncology, vaccines and industrial glass. According to Vice, the total value of these markets will reach $900 billion by 2022 and is growing at a rate that will reach approximately $3.7 trillion by 2038.

“You can do some completely different things in protein crystallization that we know will actually lead to better drugs. So we think this is actually a huge market for us,” he said.

Sierra’s immediate focus is closing a Series B round to raise capital for potential acquisitions, get Dream Chasers flying, and keep its finances strong ahead of an IPO that could come as soon as next year.

“We’ll start looking at it as an option and make decisions based on market conditions,” Vice said. “But I think we’ll be a company that can show significant revenue growth very quickly.”

Sierra sales are expected to double in 2024, according to Vice. Its order backlog currently exceeds $4 billion and it is working toward positive cash flow.

Sierra Space also plans to double its headcount this year after slashing its workforce in November.

Although it has received offers to go public through a special purpose acquisition company (SPAC), the company plans to launch a traditional IPO process.

“We are a company dedicated to leading the most profound industrial revolution in human history,” Vice explains.