
NOAA’s budget eliminates funding for TraCSS. LeoLabs selected for a $4M TACFI by SpaceWERX. CNES taps Thales Alenia Space for a laser comms demo. And more.
Loading summary
Maria Varmazis
You're listening to the N2K space network.
Dave
And now a word from our sponsor. Spy Cloud Identity is the new battleground and attackers are exploiting stolen identities to infiltrate your organization. Traditional defenses can't keep up. Spy Cloud's holistic identity threat protection helps security teams uncover and automatically remediate hidden exposures across your users from breaches, malware and phishing to neutralize identity based threats like account takeover, fraud and ransomware. Don't let invisible threats compromise your business. Get your free corporate Darknet exposure report@spycloud.com cyberwire and see what attackers already know.
Maria Varmazis
That's spycloud.com cyberwire today is July 1st, 2025. I'm Maria Varmazis and this is T minus.
Kirk Kohnert
T minus 20 seconds.
Maria Varmazis
Momentous to provide hosted payload services for orbit. FAB's on orbit demonstration of a space domain awareness payload. Cytospace is collaborating with Virago Technologies to validate and integrate next generation radiation hardened microcontroller technology. Telesalinea Space has been selected by CNES to develop a very high throughput laser communications demonstrator. LEOLABS has been selected for a $4 million tactical funding increase opportunity by the US Space Force's spacework. The national oceanic and Atmospheric Administration will be eliminating funding for tracks. Our guest today is Kirk Kohnert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space. Kirk shares his thoughts with me on current markets and national security space, so stick around to hear more on that later in the show. Thanks for joining me on this Tuesday. Let's get into it. If you're based in the United States or just following US Mainstream news, then you would probably be hard pushed to avoid stories about the budget right now. And we're sorry, but even we are leading with it today. Though this is specific to one area that falls under noaa. The national oceanic and Atmospheric Administration has released its budget estimates for fiscal year 2026 and the whole agency is taking a hit. And we are most interested in the TRAX System which is found on page 300 of the budget document and TRACs for those who aren't keeping up with the one gajillion acronyms in space stands for the Traffic Coordination System for Space and it's run by NOAA's Office of Space Commerce. This year's budget request will eliminate funding for additional work on tracks. Yes, $0 tracks was being developed as a US public space situational awareness or SSA capability to integrate government and commercial data and capabilities to provide alerts of potential in space collisions to satellite operators. And according to the budget Space Policy Directive 3 or SBD 3 stated a goal to, quote, provide U.S. government supported basic SSA data and and basic STM or space traffic management services to the public. SPD3 went on to state, the United States should continue to make available basic SSA data and basic STM services including conjunction and re entry notifications free of direct user fees while supporting new opportunities for U.S. commercial and nonprofit SSA data and STM services. The U.S. administration says that the intent of SBD3 has been satisfied but by supporting private industry to provide SSA services including through offerings of both a free basic service as well as fee based concierge services to civil operators. So we're hoping that commercial companies will keep us updated on space situational awareness. The Department of Commerce says it'll continue to monitor the use of SSA services by civil operators to determine whether additional policies are warranted to ensure that space remains a safe domain to operate. Now Richard Dalbello, who is the former director of NOAA's Office of Space Commerce, has voiced his concerns about the move on social media and he warned this the US Has a vital interest in shaping the emerging norms of orbital conduct. Abandoning tracks now would mute our voice at the very moment when international standards are being written. And we're sure that this won't be the last that we hear concerns over funding space systems in the coming days and weeks ahead. We will keep you posted. Moving on now and LeoLabs has been selected for a $4 million tactical funding increase opportunity by the US Space Force's SpaceWorks. The Air Force Research Laboratory is projected to contribute up to $2 million, which is matched with $2 million in private capital for a total $4 million TACFI effort. The funding will support LeoLabs development and deployment of a software upgrade for its Scout Class radar and the Scout Class is a new containerized S band direct radiating array that detects and tracks foreign launches. LeoLab says it'll also create a software development plan to upgrade the radar to perform track while scan for highly maneuvering objects such as missiles and hypersonic glide vehicles. This TACFI follows LeoLabs recent $60 million strategic funding increase award by SpaceWorks to deploy a Seeker Class Ultra High Frequency DRA radar in the Indo Pacific region by 2027. Thalesaline space has been selected by the French space agency CNES to develop a very high throughput laser communications demonstrator. The demonstrator is called solis, which stands for Service Optique de Liaison Spatiale Securiz, or Secure Optical Space Link Service for those who don't speak French and it aims to demonstrate the technical and economic viability of an optical communications service relying on geostationary satellites. SOLUS will use technologies developed through the government backed optical communications project known as Co Op and led by CNES and a group of 17 SMEs and large primes and draws on the outcomes of demonstrations delivered for the VERTIGO project funded by the European Commission. The payload will be flown on the ELAS Sat 5 geostationary communications satellite while the pilot ground station will be set up at the operator's Teleport in Cyprus. Cituspace is collaborating with Virago Technologies to validate and integrate next generation Radiation Hardened Microcontroller or MCU technology and according to the press release, Cytospace has previously utilized Virago MCUs but will now play a pivotal role in the early validation and system level integration of Virago's future high performance Radiation Hardened Microcontroller to be announced later this year. This partnership is designed to accelerate development and deployment cycles for Citus next generation platforms while providing Virago with real world performance feedback to refine and optimize the technology. The two companies will advance the microcontroller through joint design reviews, software and hardware integration and in system validation with the goal of transitioning to production ready deployment by 2026. And there's more news from Momentous. Yesterday we were announcing their new contracts for in space power demonstrations and today they've announced a new on orbit Space Domain awareness demonstration. Momentous has signed a contract with Orbit FAB to provide hosted payload services for the on orbit demonstration of their Space domain awareness payload called Podracer and the rapidly attachable Fluid Transfer Interface, also known as rafti. Podracer's mission is funded by the US Air Force Research Laboratory and will conduct a flight demonstration of infrared imaging sensors, image processing technology and a control module to enhance space domain awareness aboard the Vigoride 7 orbital service vehicle. The mission is scheduled to launch no earlier than February 2026 aboard a SpaceX transporter rideshare mission. That wraps up our top five stories for today, but there's always more going on across the space industry. N2K senior producer Alice Cruz joins us now with some of the other stories that we think you should be reading about today. What have you got? Alice?
Alice Cruz
Oh, you know, just four additional stories for today, Maria. There's a lot going on right now. Rocket Lab has completed the critical design review of the Space Development Agency's T2TL beta constellation. ESA is eagerly awaiting the MTG, S1 and Sentinel 4 launch this evening. We'll be bringing you more on that on tomorrow's show if it stays on schedule. Teledyne Space in the UK is working with Japan on a climate change mission, and China's Tianwan 2 has shared images of the Earth and Moon.
Maria Varmazis
Just a few extra stories there. Please remind us on where we can find out more about them.
Alice Cruz
We include links to the original sources of all the stories mentioned throughout the show in the Selected Reading section of our Show Notes. Those links can also be found on the Episode page on our website. Just head to space.n2k.com and click on today's episode title.
Maria Varmazis
Hey T Minus Crew. If you are just joining us, be sure to follow T Minus Space daily in your favorite podcast app. Also, please do us a favor and share the intel with your friends and coworkers. Here's a little challenge for you. By Friday, please show three friends or family members or coworkers. This podcast. A growing audience is the most important thing for us and we would love your help as part of the T Minus crew. If you find T Minus useful, please share so other professionals like you can find the show. Thank you so much. It means a lot to me and all of us here at T Minus.
Dave
Risk and Compliance shouldn't slow your business down. Hyperproof helps you automate controls, integrate real time risk workflows and build a centralized system of trust so your teams can focus on growth, not spreadsheets. From faster audits to stronger stakeholder confidence, Hyperproof gives you the business advantage of Smarter compliance. Visit www.hyperproof.IO to see how leading teams are transforming their GRC program.
Maria Varmazis
Our guest today is Kirk Koenert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space. Kirk started by telling me what he does for ae.
Kirk Kohnert
I lead the National Security investment team that tends to be focused on anything national security which includes space. And that's a big part of our portfolio and a big part of what we I do on a day to day basis. I'm also the Chairman of Firefly Aerospace. I sit on the boards of York Space Systems, Red Wire Space, Big Bear AI to name a few. I've been doing this for my entire career. I've been at AE for the last 11 years and the last decade's been trying to find the best companies to back in this sort of new defense tech space tech frontier.
Unnamed Interviewer
Kirk I can't think of anyone better to Just sort of pick the brain of, in terms of what's going on in national security space right now and just like what your thoughts are on the landscape as it is and maybe how it's changed because it certainly has in the past few years.
Kirk Kohnert
Yeah, it's been amazing to see the change in opportunity and just the quality people come into the market, the quality of founders. I mean, look, you take a step back. When we first said, hey, we're going to invest in space, people said, you guys are crazy. What are you doing? We were sitting around a table. We're like, yeah, we think this whole revolution is about to happen. We need to be investing in this sector. So we really built a thesis around there's a new gold rush happening within space. Let's find an investable theme behind that. As a private equity firm, we're a little more risk tolerant than most private equity firms. Space being an example of that. But we still have to convince our investors that these are enduring and resilient businesses. It's been crazy to see the change and the opportunities and obviously the national security. I think space is unique in that it's a new domain, it's a new contested domain. And there's not, relatively speaking, not a lot of dollars going into space. So the Space Force and other organizations within the U.S. government that buy space assets have had to get creative around how they use commercial companies and those technologies to help complete their mission. So that's provided a big opportunity for companies that we've invested in. Firefly is a great example of that. With Landing Moon.
Unnamed Interviewer
I'm so curious, given the world that you are in, sort of your attitude about risk and like risk toler. And again, space is capital intensive, risky. You know, a lot of folks who are trying to start up a business are often complaining about how hard it is to get people to invest in them because of that risk. I'm just. Your thoughts on that.
Maria Varmazis
What's your philosophy?
Kirk Kohnert
There, there is truth. The space is hard, right? It is a tough industry. It's unforgiving. But I think where we've gotten comfortable is that when you back the best people and your vision and mission is aligned, you can get through any, any hard challenge, right? It's hard, but it's also a really rewarding industry, right? We are, we are mission critical to some of the hardest national security problems. We try to convince people and it's easier now. Space is a critical infrastructure for how we live our everyday lives. Right? And if we don't have, we don't have the that access, then your life as you know it changes dramatically.
Maria Varmazis
Yeah.
Kirk Kohnert
We are focused on finding people who want to be in this industry and want to drive the mission and how we think about risk and our tolerance. Like we're willing to take bold bets. We're willing to take bold bets because we believe we know what it takes and we know where the best places to invest capital and we're able to have better insights than our, maybe our other competitors in investing. We could take seemingly bowler bets, but we have, we believe our models are better. Right. We believe that these seemingly big risks are warranted based on the upside. And I think that's a differentiation that we have.
Unnamed Interviewer
I'm so curious, given what you're out there seeing, what you're interested in, what's got you really jazzed right now with what's happening, what's happening in the space markets? Because there's pretty much every day like somebody's coming out of stealth, something really cool is happening.
Maria Varmazis
What's got you really like, oh yeah.
Unnamed Interviewer
That'S where I'm going.
Kirk Kohnert
Where we invest in the life cycle. It's really in the growth, the later stage. Right. So we're seeing are these great companies that were, were funded a few years ago when a pretty tough financing market. They, they were able to, they were sort of the, they had to be really special. Right. They had a really special founder, a really, really special vision. And now we're seeing those companies start to raise Series B, Series C, C rounds. And you know, that's a point where we can invest in those companies and they tend to be in areas that are focused on national security. Right. Where they are solving unique problems for the U.S. u.S. Government, they tend to have some relevance to Golden Dome. I know it's like the hot thing in the press and everything makes sense though.
Unnamed Interviewer
It's just logical, honestly.
Kirk Kohnert
Yeah, I mean, space is going to have a huge role in that ecosystem. I think a lot of that is a little bit of existing programs that are going to be used for that system. And then there's going to be some new technologies going to be utilized and there's a lot of companies that were sort of again founded a few years ago that are now positioned to win big, big pieces of that, that pie. And I think that's where again, we can step in and provide that capital needed to go scale up for that opportunity. That's where we think we're our special sauces. Like, hey, you got product market fit, you've got this great, great customer. But do you really know how to scale can you deliver dozens of systems a month to the customer? A lot of these companies don't know how to do that. Right. And it's different than like the traditional Silicon Valley venture backed companies where you know they're used to building software and that's really easy to scale. Software development sure. Is scaling hardware development completely different thing and it's a different skill set a lot of, a lot of these founders don't have. That's where we been able to find a lot of success. And then like the new, new stuff I'm really excited about like these new crop of companies coming up. A lot of like you're seeing companies talk about how do we utilize the power from the sun for unique applications and power on terrestrially. I think that those are, those are some really, I think really interesting ideas and it's good to see like mainstream venture capitalists kind of get really excited about space companies. I think that's different than what we've seen in the last five years. I think that's really, that that trend has changed where space and the, and defense are kind of some of the best ideas from you know, from some of these venture venture capitalists. So I think, yeah, yeah. Really excited about what's happening in the market you mentioned.
Unnamed Interviewer
I think one of your portfolio companies is Big Bear AI. They're fascinating company that made me think a little bit about you know, AI being the thing that everyone's going okay, but what's real and what's not. And now Big Bear is doing something really cool. Uh, so like what, how do you discern? I mean they're, they're doing something really legit and really important.
Kirk Kohnert
You know it's, I think we start with like are these people that are in this company, are they real domain experts? Right, Because I think we're not going to compete against OpenAI, Google, Anthropic. Like, like that's just not their, their, their, their models are, they're going to be way ahead of any, anything that we could ever achieve. So it's really about how do you apply that great technology and powerful technology to the actual domain problems. And that happens from people who have decades of experience within that domain and that problem set. And they say okay, I can hear the technologist tell me about what AI can do for me and then I can apply it to that mission. That's where we see the opportunity. It's really about those people who can then kind of translate that to an actual solution to a problem and there's some great use cases out there, it's accelerating. So it's kind of like I was going to say like next five years, maybe the next like two years, you're going to see some really interesting emerging companies come out of this. Like how do we, these applications, how do we build the killer apps based on these LLMs that can clearly drive solutions for these problems within space. And some of our companies are doing that like Big Bear is doing some of that. Red Wire space is also, so also doing that on the, on some of the space situational awareness and space awareness side where again, the ability to use these powerful AI tools to solve problems that, you know, we've been trying to figure out for a long, long time that'll happen.
Unnamed Interviewer
Kirk, I've been really enjoying this. I've learned a lot from you. So thank you. Is there, if there's anything that you wanted to mention as sort of a closeout for the audience, it's open floor for you?
Kirk Kohnert
Yeah. No, like I appreciate you having me on. I mean I love talking about national security, I love talking about space. I think the time is now for private capital to invest in this sector. I think it's a once in a generation opportunity. It's a couple trillion dollar market in 10 years and there's a tremendous growth opportunity and I'm betting my credit career on it. And I think it's a tremendous mission.
Maria Varmazis
We'll be right back.
Dave
Hey everybody. Dave here. I've talked about Delete me before and I'm still using it because it still works. It's been a few months now and I'm just as impressed today as I was when I signed up. Delete me keeps finding and removing my personal information from data broker sites and they keep me updated with detailed reports so I know exactly what's been taken down. I'm genuinely relieved. Knowing my privacy isn't something I have to worry about every day. The Delete Me team handles everything. It's the set it and forget it peace of mind. And it's not just for individuals. Deleteme also offers solutions for businesses helping companies protect their employees personal information and reduce exposure to social engineering and phishing threats. And right now, our listeners get a special deal. 20% off your delete me plan. Just go to JoinDeleteMe.com N2K and use promo code N2K at checkout. That's JoinDeleteMe.com N2k code N2K.
Maria Varmazis
Welcome back. Starting this summer, anywhere in the world, when you hear that Netflix tudum sound, you should also think NASA soon. Not exactly precisely when, but NASA says soon you'll be able to stream NASA programming directly on the world's biggest streaming platform. Yep, that would be Netflix. And that means rocket launches, spacewalks, Earth views from the iss, and mission coverage will just be a tap, mouse click, or TV clicker. Press away for Netflix's 700 million global users. This news is part of NASA's ongoing push to reach audiences wherever they are, whether that's a launch pad in Florida or a phone in your hand, literally anywhere. Don't fret if you already have the NASA plus app, and I count myself as one of those people, it's not going anywhere. It'll still be free and ad free. So yes, the next time you're scrolling past true crime documentaries and cooking shows or maybe catching up on squid game or whatnot, maybe a rocket launcher, a Mars rover roving past might also catch your eye. And maybe when the kiddos are looking for cocomelon, they'll opt for a spacewalk instead. Who knows what this move could inspire? And that's it for T minus Brought to you by N2K CyberWire we'd love to know what you think of our podcast. Your feedback ensures we deliver the insights that keep you a step ahead in the rapidly changing space industry. If you like our show, please share a rating and review in your podcast app. Please also fill out the survey in the show notes or send an email to space2k.com we're proud that N2K CyberWire is part of the daily routine of the most influential leaders and operators in the public and private sector. From the Fortune 500 to many of the world's preeminent intelligence and law enforcement agencies, N2K helps space and cybersecurity professionals grow, learn, and stay informed. As the nexus for discovery and connection, we bring you the people, technology and ideas shaping the future of secure innovation. Learn how@n2k.com N2K Senior Producer is Alice Carruth. Our producer is Liz Stokes. We're mixed by Elliot Peltzman and Trey Hester with original music by Elliot Peltzman. Our executive producer is Jennifer Ibin. Peter Kilby is our publisher and I am your host, Maria Varmazes. Thanks for listening. We'll see you tomorrow. T minus.
Dave
And now a word from our sponsor. Spy Cloud Identity is the new battleground, and attackers are exploiting stolen identities to infiltrate your organization. Traditional defenses can't keep up. Spy Cloud's Holistic Identity Threat Protection helps security teams uncover and automatically remediate hidden exposures across your users from breaches, malware and phishing to neutralize identity based threats like account takeover, fraud and ransomware. Don't let invisible threats compromise your business. Get your free corporate darknet exposure report@spycloud.com cyberwire and see what attackers already know. That's spycloud.com cyberwire.
T-Minus Space Daily: Funding Dropped for the Traffic Coordination System for Space
Release Date: July 1, 2025
Host: Maria Varmazis, N2K Networks
In today's episode of T-Minus Space Daily, host Maria Varmazis delves into significant developments within the space industry, with a particular focus on the recent budget cuts affecting the Traffic Coordination System for Space (TRACs). The episode also highlights key funding announcements for various space technology companies and features an insightful interview with Kirk Kohnert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space.
The National Oceanic and Atmospheric Administration (NOAA) has announced a substantial budget reduction impacting the Traffic Coordination System for Space (TRACs). Located on page 300 of NOAA's fiscal year 2026 budget, TRACs was envisioned as a U.S. public Space Situational Awareness (SSA) capability. Its purpose was to integrate government and commercial data to provide alerts for potential in-space collisions, thereby enhancing satellite operator safety.
Key Points:
While TRACs faces funding cuts, several other space technology firms have secured significant investments:
LeoLabs Secures $4 Million from US Space Force:
Thalesaline Space Collaborates with CNES:
Cituspace and Virago Technologies Partnership:
Momentous Expands In-Space Demonstrations:
Maria Varmazis, alongside senior producer Alice Cruz, touches upon several other noteworthy developments:
For more details on these stories, listeners are directed to the Selected Reading section in the episode's show notes on space.n2k.com.
Guest: Kirk Kohnert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space.
Discussion Points:
Kirk Kohnert oversees AE Industrial Partners' National Security investment team, focusing primarily on space-related ventures. He emphasizes the significant role of space within the national security portfolio and his involvement with various space companies, including Firefly Aerospace, York Space Systems, Red Wire Space, and Big Bear AI.
Kohnert discusses AE Industrial Partners' proactive approach to investing in the burgeoning space sector, likening it to a "new gold rush." He states:
“Space is mission-critical to some of the hardest national security problems. We try to convince people that it's easier now.” ([15:02])
He highlights the firm's willingness to take bold bets on space technologies, believing that with the right vision and leadership, challenges can be overcome. This risk tolerance is balanced by thorough due diligence to ensure investments are both enduring and resilient.
Kohnert expresses enthusiasm for the evolution of space companies reaching growth and later-stage funding rounds. He notes the emergence of companies leveraging AI to solve complex space-related problems, such as:
“It's really about those people who can then kind of translate that to an actual solution to a problem and there's some great use cases out there, it's accelerating.” ([19:55])
He cites Big Bear AI and Red Wire Space as examples of firms effectively applying AI to space situational awareness and other domain-specific challenges. Kohnert believes that integrating advanced technologies like Large Language Models (LLMs) with space operations will drive significant innovations in the coming years.
Kohnert is optimistic about the role of private capital in scaling space technologies:
“I think it's a once in a generation opportunity. It's a couple trillion dollar market in 10 years and there's a tremendous growth opportunity and I'm betting my credit career on it.” ([21:43])
He anticipates that as space becomes increasingly integral to national security and everyday infrastructure, the demand for scalable and innovative solutions will surge, presenting vast opportunities for investors and entrepreneurs alike.
Today's episode of T-Minus Space Daily underscores the dynamic and evolving landscape of the space industry. While budget cuts to initiatives like TRACs pose challenges to public SSA capabilities, substantial investments in private space companies signal robust growth and innovation. The insights shared by Kirk Kohnert illuminate the strategic approaches and optimistic outlook within the national security space sector, highlighting the pivotal role of private equity in shaping the future of space technology.
Stay tuned for more updates and expert analyses on the latest developments in the space industry.
Learn More:
For additional stories and in-depth coverage, visit space.n2k.com and explore the Selected Reading section in the episode's show notes.