Chip design company AccelerComm has closed a funding round totalling $15 million led by IP Group to speed its development of 5G satellite communication technologies that enable direct-to-device communication between phone handsets and space-based networks.

There has been a huge increase in interest in this area in the last 6 months both from satellite operators and mobile service providers as they seek cooperative (standards-based) development to address new markets and to improve coverage,” David Helfgott, the new CEO of AccelerComm, told DCD. “This is clearly a multi-billion dollar opportunity that will evolve rapidly as nobody wants to be left behind.

The investment will support projects with key mobile operators and satellite network customers, including Lockheed Martin, which uses AccelerComm’s technology in its Advanced Regenerative 5G NR NTN Base Station, expected to be the first regenerative 5G payload in orbit.

AccelerComm believes its in-orbit base station technology sets them apart.

Conventional 5G base station technology is not suitable for deployment in space due to extreme space-climate, weight, power and cooling challenges,” Helfgott told DCD. “We have developed a key part of the base station, the modem or physical layer, that runs on proven space-grade silicon and meets these extreme demands. We believe we are at least 2 years ahead of our competitors in this critical area.”

Helfgott was announced as the company’s new CEO at the same time as the funding, coming to the role after 20 years of leadership experience in wireless and satcom markets. He served most recently as CEO of SmartSky Networks, with a history at Inmarsat Government, Datapath Inc., and SES Government. He’s expected to expand partner traction in the United States and more globally.

The UK Space Agency stated its approval of the news, celebrating the step toward universal mobile coverage through space-based 5G via a UK company it had supported.

IP Group’s Parkwalk and Hostplus managed funds populated the funding round with support from IQ Capital, Swisscom Ventures’ digital transformation fund, and Bloc Ventures.

“AccelerComm has one of the world’s leading technologies for fast and efficient communications in the nascent low-earth-orbit satellite market, supported by blue-chip investors,” Lee Thornton, deeptech partner at IP Group said in a statement. “The company is well-positioned for growth, with a market that is projected to be worth $100bn within a decade, and we look forward to future progress.”

Helfgott described great interest in connectivity tools for the automotive market, with cars becoming more reliant on security, driver assistance, and entertainment products packaged into their design, all of which understand non-terrestrial to be a ubiquitous way to assure seamless service. AccelerComm is confident about its future roadmap.

“Our technology and solutions are already in-orbit, but over the next few years, we can expect to see several new constellations, demonstrators, and pilot deployments launched that include our solutions as well,” Helfgott told DCD. “These will lead to powerful hybrid commercial services, combining both satellite and terrestrial 3GPP standards-based networks, available to consumers shortly following thereafter. We can all look forward to a day where frustrating “not spots” are a distant memory, and a whole range of new communications applications and services are available."