In a significant development in the space technology sector, OurSky and PlaneWave Instruments have merged to form Observable Space, a new company that aims to revolutionize the way space observational data is collected and analyzed. The merger brings together OurSky's software platform for space observational data and PlaneWave's expertise in telescope manufacturing, creating a comprehensive solution for the industry.

The merger was facilitated by a $9.5 million seed round led by Upfront Ventures partner Nick Kim, who was impressed by the synergy between the two companies. Kim recalled a demonstration of PlaneWave's telescopes, which highlighted the need for a more integrated approach to space observational data collection. "It took them quite a long time to get the first image. I'm talking like, multiple hours. And these are the people who make the telescopes! They were using all this, like, off-the-shelf, open-source software that they kind of cobbled together," Kim said in an interview with TechCrunch.

The merger will enable Observable Space to provide a more streamlined and efficient solution for customers, including NASA, the U.S. Space Force, and Georgia State's Center for High Angular Resolution Astronomy. OurSky founder Dan Roelker and PlaneWave founder Richard Hedrick believe that the tighter integration will open up new markets, particularly as they leverage their position as the only U.S.-based telescope manufacturer.

Roelker, who previously served as SpaceX's VP of software engineering, emphasized the importance of eliminating the "mash of integration bullsh—" that telescope users currently face. By combining PlaneWave's vertical strategy with OurSky's software, Observable Space aims to provide a more seamless experience for users. This could involve allowing users to tap multiple telescopes at a single site or even around the world, mimicking the capabilities of a much larger telescope, or sending communications to and from space via laser, all while lowering costs.

Hedrick, who built PlaneWave into a successful company despite the dominance of overseas telescope manufacturing, is excited about the potential of the merged entity. He cited an example of an institution that had designed custom-built one-meter telescopes, only to regret not having worked with PlaneWave. "And they were like, 'God, if you had existed, we never would have done that,'" Hedrick said.

The merger is also seen as a strategic move to capitalize on the growing demand for space-based services. As the cost of accessing space decreases, more companies are launching satellites and other spacecraft, driving up demand for tracking and communication services. Mislav Tolusic, managing partner at dual-use venture fund Marlinspike, which has invested in Observable Space, believes that the company is well-positioned to benefit from this trend. "Every day you're relying on space," Tolusic said. "If you take out GPS constellations, we're in trouble economically. It's a big, big, big deal. A lot of systems stop functioning. And guess what? The future is going to be even more dependent on that infrastructure."

Jordan Noone, general partner at Embedded Ventures, which has also invested in Observable Space, cited a demonstration of the companies' products working together as proof of the potential of the merged entity. The demo, which involved locating a lost spacecraft, showcased the seamless integration of OurSky's software and PlaneWave's telescopes. "Many of the world's most valuable companies, like Apple, Nvidia – they're hardware/software platform combos," Noone said. "Companies that approach just one of those two can have a lot of inherent value, but the combination of both in today's world is extremely powerful."

Observable Space has about 100 employees, with manufacturing operations remaining in Michigan, some engineering happening in Los Angeles, California, and an observatory outside Washington, D.C. The company has raised $11 million to date, including funding from In-Q-Tel, the CIA's non-profit strategic investment arm. Hedrick and Roelker expressed satisfaction with the merger process, which they believe has brought the two companies closer together. When asked about the challenges they faced during the merger, they quipped that they had to decide whether the company would be "Star Wars or Star Trek" – ultimately settling on "Battlestar Galactica."

The merger of OurSky and PlaneWave Instruments to form Observable Space marks a significant development in the space technology sector, with the potential to revolutionize the way space observational data is collected and analyzed. As the demand for space-based services continues to grow, Observable Space is well-positioned to capitalize on this trend and become a leading player in the industry.