January's Space Dirt 🚀

Lots already going on in the hard tech world in 2025.

Let’s go!

REAL ESTATE HIGHLIGHTS

General Galactic leased 4,400 square feet at 113-117 Sierra St, El Segundo, CA. (source: Me!)

Hybron leased 6,497 square feet at 1325 E El Segundo Blvd, El Segundo, CA. (source: Me!)

Salient Motion leased 11,145 square feet at 2255 Dominguez Way, Torrance, CA. (source: Me!)

Inversion Space leased 55,090 square feet at 12777 W Jefferson Blvd, Los Angeles, CA. (source: Me!)

The Good Drone Company leased 1,885 square feet at 1835 E Sixth Street, Tempe, AZ. ➞ I set a new PR with this one - 6 weeks from referral to signed leases 🤝(source: Me!)

Solideon stayed in Berkeley, CA, but doubled its facilities’ footprint by moving to 2310 4th Street. (source: LinkedIn)

Archer Aviation announced it completed construction of its ~400,000 square foot high-volume manufacturing facility, ARC, located in Covington, GA. This facility will produce its all-electric vertical takeoff and landing aircraft, Midnight, built for rapid, back-to-back flights across cities. The planned start of production at this facility is early 2025, with a goal of a rate of two aircraft per month by the end of the year. (source: X)

REGENT broke ground on its 255,000 square foot Seaglider manufacturing facility in Rhode Island. Opening in 2026, REGENT will manufacture 12-passenger electric seagliders and create 300+ new jobs in the region. REGENT will deliver seagliders to commercial and defense customers. (source: X)

STEALTH NO MORE

Los Angeles-based Biosphere Co-founder Arye Lipman, announced on X that Biosphere has emerged from stealth with $8.8 million in seed funding led by Lower Carbon and VXI Capital, with support from Founders Fund, GS Futures, Caffeinated Capital, and B37. Biosphere also announced a $1.5 million contract with the Department of Defense to scale bioproducts of strategic national interest. Biosphere’s mission is to unleash the potential of industrial biology.

Mike Sims, Co-founder and CEO of San Diego-based Empirium, announced its emergence from stealth via a LinkedIn post. Empirium is a venture-backed startup designed to help A&D companies trade critical goods and services through a tightly managed online marketplace powered by trust and built for highly regulated industries in mutually aligned countries.

Portland, OR-based AscendArc emerged from stealth with $4 million in funding to develop small GEO communication satellites. The company, founded by ex-Starlink engineer Chris McLain, raised $505,000 in a pre-seed round and $3.45 million in seed funding. Investors include Seraphim Space, Everywhere Ventures, Portland Seed Fund, Thermo, and Hunter Communications. (source: Payload)

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REAL ESTATE CORNER

2025 South Bay Market Predictions 🔮

I’m not one for predictions or trying to “time the market” because, for the most part, when your lease is up, it’s up, but I thought you might be interested in what I’m seeing in the South Bay market.

Here are my 4 commercial real estate predictions for 2025.

1. Supply for flex space will continue to increase. There is currently: 1) over 200,000 square feet of flex space under construction in El Segundo, 2) over 500,000 square feet of flex/industrial space under construction in Torrance, and 3) over 1 million square feet of flex/industrial space under construction in Long Beach.

2. Rent per SF for flex space will continue to decrease. Simple laws of supply and demand. This will also help stop some companies from leaving Gundo for traditionally cheaper markets like Torrance.

3. More hard tech subleases will hit the market. More high-quality subleases becoming available will also negatively impact rental rates (good for tenants). If you want to be alerted to the best subleases in the market, sign up here.

4. The South Bay will remain the epicenter of the hard tech world. With all of the new space coming onto the market and a more competitive rental rate landscape, companies will be less compelled to leave the South Bay’s talent-rich ecosystem.

If you have a lease expiring in the next 6-18 months, now is the time to put a plan together so we can make sure your real estate supports your unique business needs. Email me or reply to this email to get the ball rolling.

NOTABLE FUNDINGS

Stoke Space announced that it has raised $260 million in new Series C investment to drive continued growth and innovation. This investment more than doubles the company’s total funding, bringing it to $480 million. The funding round involves new and existing investors, including Breakthrough Energy Ventures, Glade Brook Capital Partners, Industrious Ventures, Leitmotif, Point72 Ventures, Seven Seven Six, the University of Michigan, Woven Capital, and Y Combinator, among others. (source: Stoke Space)

Los Angeles, CA-based EV startup, Harbinger, raised a $100 million Series B, co-led by early Tesla investor Capricorn Investment Group, and Leitmotif, a new US fund co-founded by the former M&A head for Volkswagen. Also joining the round were Tiger Global and mobility venture firm Maniv, both of which were existing investors. (source: TechCrunch)

Castelion raises $100 Million for hypersonic strike weapons. The Series A financing round was led by Lightspeed Venture Partners, with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital, and Interlagos. The financing includes $30 million in Venture Debt financing provided by Silicon Valley Bank, with the final close expected in February. Funding will be used to continue Castelion’s rapid flight test campaign and invest in scaled manufacturing infrastructure for key missile subsystems. (source: Wall Street Journal)

1789 Capital, where Donald Trump Jr recently became a partner, led the $60 million Series C funding round into Texas-based Firehawk, which builds rocket engines and propellants from 3D printers. Other participants included 1789 Capital, Point Bridge Capital, BOKA Capital, Draper Associates, Cubit Capital, Stellar Ventures, Plains Ventures, Backswing Ventures, Gaingels, Pomifer Capital, Greenwood and Cavalier, and What If Ventures. (source: LinkedIn)

Seattle, WA-based Overland AI, a technology company developing advanced autonomy for uncrewed ground vehicles (UGVs), today announced a $32 million Series A funding round to accelerate the adoption of its ground capabilities for defense and national security. The round was led by 8VC, with participation from Point72 Ventures, Overmatch Ventures, Shasta Ventures, Ascend, Osage University Partners, and Caprock. (source: Globe Newswire)

Earth AI, a predictive explorer for clean energy metals using artificial intelligence (AI), has announced $20 million in Series B funding. The oversubscribed round was led by Tamarack Global and Cantos Ventures. Participating investors include Overmatch, Alpaca, Sparkwave Capital, and significant support from existing investors, including Y Combinator and Scrum Ventures. The new funding will drive AI and drilling technology development and accelerate project value discovery. The company plans to increase the project pipeline to over 50 sites and increase drilling capacity to 100,000 meters at an industry beating ~$100/meter cost. The company operates in Sydney, Australia, and  Los Angeles, CA. (source: PR Newswire)

Agtech startup Bonsai Robotics raised $15 million to help combat farm labor shortage. Bison Ventures led the oversubscribed Series A funding round for the startup bringing autonomous vehicles to orchards. Participation included new investor, Cibus Capital, and existing investors Acre Venture Partners, Congruent Ventures, Fall Line Capital, E14 Fund, SNR, and Serra Ventures. (source: Wall Street Journal)

Austin, TX-based Bedrock Energy, a geothermal heating and cooling startup, announced a $12 million Series A led by Titanium Ventures. Energy Impact Partners and Sustainable Future Ventures joined alongside existing investors Wireframe Ventures, Overture Ventures, Toba Capital, Elemental Impact, First Star Ventures, and Cantos. The funding will support the continued advancement of Bedrock’s technologies, as well as expanded deployment in Colorado, Utah, and neighboring states. (source: Business Wire) 

Los Angeles, CA-based Karman Industries has raised an additional $7.5 million in funding, bringing the total raised to date to $11.5 million. From Karman, “Initial investors Riot Ventures and Space VC are doubling down on our vision to revolutionize industrial heat, and Wonder Ventures and 8090 Industries are new partners who share in this goal. This funding will supercharge our momentum in 2025 as we continue to scale and develop technology that will affordably reduce greenhouse gas emissions. Karman emerged from stealth in September.” (source: LinkedIn)

Spaceium, a Los Angeles, CA-based company building a network of in-space refueling stations, raised $6.3 million in funding. The round was led by Initialized Capital, with participation from Zeno Ventures, Olive Tree Capital, DTX Ventures, 16Z Scout Fund, Crosscourt Ventures, Giangels, Calm Ventures, Alumni Ventures, Spacedust Ventures, Capitalize Funds, Outfit ventures, Mergus Ventures, Hydrocarbon Minerals, and angels like Saturning Pugnet (Worldcoin) and Justin Hamilton (Clutterbot). The company intends to use the funds to expand operations and its development efforts. (source: CityBiz)

Artificial intelligence startup Shield AI is set to nearly double its valuation, aiming for $5 billion as it works to secure a significant funding round. The San Diego-based company, which specializes in autonomous drones and military-grade AI software, is reportedly in talks to raise around $200 million from investors, including Palantir, Airbus, and Lockheed Martin, according to a report from the Financial Times, citing sources familiar with the matter. The new funding would mark a sharp rise from the company’s $2.8 billion valuation in its previous round in 2023. Venture capital firms such as Andreessen Horowitz, Point72, and Riot Ventures are also expected to participate in the round. (source: TechStartups)

Detroit, MI-based Motmot, a critical infrastructure tech company specializing in asset management solutions for the drinking water infrastructure industry, announced the successful close of its pre-seed round with $1.34 million. This round was led by Assembly Ventures with participation from Michigan Rise, Kalamazoo Forward Ventures, and eLab Ventures. This funding marks a pivotal milestone for its mission to revolutionize water infrastructure with its Autonomous Underwater Robot technology. (source: LinkedIn)

AGREEMENTS, PARTNERSHIPS, & CONTRACTS

Planet Labs, a leading provider of global, daily satellite imagery and geospatial solutions, announced the signing of a multi-year $230 million agreement to expand its partnership with a long-standing Asia-Pacific commercial partner. Pursuant to the agreement, Planet will build and deliver a constellation of new Pelican high-resolution satellites, securing certain capacity on the satellites for the partner, in addition to providing operational services. Planet will leverage the increased capacity of the expanded fleet to serve its own government and commercial customers around the world. (source: Planet)

Torrance, CA-based K2 Space has secured a $30 million contract from the US Space Force to launch its first Mega Class satellite, a milestone for the startup founded just two years ago. The deal is part of the Strategic Financing Initiative program, which matches government funds with private investment to bolster cutting-edge space technologies. With contributions from the Space Force’s SpaceWERX organization, the Air Force Research Laboratory, and the Pentagon’s Space Test Program, the total value of the agreement amounts to $60 million. (source: SpaceNews)

Firestorm Labs has been awarded a $100 million, 5-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract to support key US Air Force priorities. The IDIQ can be leveraged for the development or procurement of additively manufactured unmanned aerial systems (UAS) and advancing next-generation autonomy capabilities. The contract spans five years and enables the Air Force to issue multiple task and delivery orders, providing flexibility to adapt to shifting operational demands. Individual task orders will allow for performance periods of up to 24 months after the final order is placed. Under this contract, Firestorm is open to orders for work across the USG. (source: PR Newswire)

Long Beach, CA’s Mayman Aerospace, a pioneer in vertical takeoff and landing (VTOL) technology, announced today that it has secured Federal Aviation Administration Special Airworthiness Certificates (Experimental Class) for two of its Unmanned Aerial System aircraft: the RAZOR TBX and RAZOR P100. The two certifications, both granted in a single day, mark a significant milestone in Mayman Aerospace's development of dual-use VTOL aerospace platforms, positioning the company at the forefront of next-generation aerospace technology. (source: EIN Presswire)

WHAT I’M CONSUMING (AND ENJOYING!) 

⛽️ Orbit Fab’s COO, Shawn Hendricks, stresses the importance of addressing in-space logistical support for satellites, particularly refueling, in his GovExec Space Project piece.

💡 Icarus’ CEO, Henry Kwan, makes his case for conquering a forgotten frontier, the Stratosphere.

📰 I enjoy reading @AtomsNotBits hard tech roundups on X. Here’s a good sample from this week.

🎛 Nathan Mintz goes into great detail on combatting drones and their controllers in his latest Substack.

HOW I CAN HELP YOU

Some people only know me as “that Space Dirt newsletter guy.” Although I love that moniker, here are 3* ways I can help with your hard tech real estate when the time is right.

1. A new home for your growing business. The good news - you’re growing! The bad news - you need to move, and you don’t know the hard tech real estate market. I can help. And I come with strong references.

2. Sublease your space. You’ve outgrown your space and need to move but don’t want to pay two rents? I got you.

3. Time to renew your lease? Want to make sure you’re getting a fair deal from your Landlord? In my experience, you can never be too certain. (BTW, I recommend starting the lease renewal process 12 months out at a minimum.)

*Not an exhaustive list 💪

Thanks for reading.

If you’d like your office and/or manufacturing space or business profiled - or even your city! - let me know. It’s always fun to explore and share the different components of the hard tech industry.

Erik Stiebel
Founder and Vice President
CA DRE License #02080746
424.241.4795 | [email protected] 
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