SpaceWERX, the innovation arm of the U.S. Space Force, has selected 11 companies to participate in a new round of Strategic Funding Increase (STRATFI) agreements, with the goal of advancing space technologies from the initial development stage to operational applications supporting military missions. The agreements are expected to attract a combined $562.5 million from government entities and private-sector investors.
SpaceWERX announced the selections on August 20 during the Fed Supernova conference in Austin, Texas. The selections do not yet represent final contracts; the companies will work with SpaceWERX and Space Force entities to negotiate the agreements, define implementation milestones, and demonstrate the technologies’ ability to meet military requirements.
Co-funding Before Moving to Procurement
A single STRATFI agreement can be worth up to $60 million and typically combines government funding with private investment. SpaceWERX can provide up to $15 million from the Small Business Innovation Research (SBIR) program, with the remaining amounts supplied by military customers and matching private investments.
This model differs from traditional early-stage SBIR grants because it requires other parties willing to put their money behind the project, along with investors from outside the government. Through this structure, STRATFI seeks to align the interests of the startup, the operational customer, and private capital before the government commits to procuring the capability at a larger scale.
Selected Companies and Technologies
The list includes Agile Space Industries, which develops chemical propulsion systems and high-thrust engines for spacecraft; and Antares Nuclear, which is working on small, factory-manufactured nuclear reactors for defense and commercial applications, with a history of receiving Air Force funding to adapt its technology for space use.
EO Solutions develops space-domain-awareness sensors, directed-energy technologies, and optical systems, while Hydrosat operates satellites equipped with infrared thermal sensors to monitor thermal signatures and changes on Earth’s surface. Muon Space also designs, builds, and operates satellite constellations for commercial and defense applications, including environmental monitoring from space.
The group also includes Method Security, which specializes in cybersecurity software for government systems and critical infrastructure; Scout Space, which develops optical sensors mounted on spacecraft, with onboard satellite processing and autonomous software for detecting and analyzing orbital objects; and Sedaro, which provides software for digital engineering and simulation, creating high-fidelity models and digital twins of satellites and military systems.
Star Catcher Industries is working on an orbital power network that uses optical power transmission to satellites, while ThinkOrbital is developing technologies for inspecting, servicing, and building spacecraft in orbit, including robotic welding tools and an X-ray system. The body of the article names KMI Space as a company developing vehicles and robotic systems for orbital logistics and debris removal, while the summary names Kall Morris; this point requires editorial review.
Why Does This Program Matter?
SpaceWERX has not provided details about the individual projects in this round, so it is not possible to determine which capabilities will receive operational priority or when they will enter service. However, the STRATFI mechanism means that the selected companies will need to combine public funding, military demand, and private investment, then pass through negotiation and testing stages before reaching a final procurement contract. SpaceWERX Director Arthur Grijalva said the program helps the Space Force demonstrate demand to industry and investors.
STRATFI is available to companies carrying out, or that have recently completed, a Phase II project under the SBIR or STTR programs. Accordingly, the selection represents an additional funding and validation step, not an announcement that the technologies mentioned have already entered military service.