Finalist Magnestar Pitches at Startup Battlefield | TechCrunch Disrupt 2023

Coming to us from the great white north Of Toronto Canada we got Magna star Presenting for Magna Stars Jacqueline Good give her a round of applause Side of building amazing space Spectrum Simulation technology you can find me Sailing and training for space Hello my name is Jacqueline good I'm the Founder and CEO of magnastar I'm here With demo Danny we are thrilled to be Presenting magnastar and 24 7X 24 7x is Spectrum simulation and coordination Infrastructure bringing relief to the Space sector Next slide Welcome to space Everything that we do in terms of Financial verification GPS navigation Financial Services as well as Telecommunication and Earth observation Relies on Space technology radio Frequency waves moving between Earth and Space consistently for service As we move from 8 000 satellites to over A hundred thousand satellites in space The overall noise level between Earth And space is set to dramatically Increase causing interference and Outages of the services we depend on The current process set in place for Obtaining Spectrum coordinating amongst Other operators and protecting your Spectrum rights is an intensely manual Costly And Timely process that all

Operators and Regulators are struggling Through Magnastar is taking on this challenge Especially as if we are unable to have Dependable space technology it puts the Entire sector in jeopardy And space technology and that's we're Bringing forward We are here to ease the complexity of Space Spectrum we simulate at scale when Multiple satellites will be directly in A co-linear vector and interfering with One another we predict this both in the Short term as well as in the long term Over a two-year period of time what is The likelihood of multiple satellites or Constellations interfering with one Another and a visit to go beyond the Thresholds of The Regulators that are Put in place We uniquely embed that simulation Technology into coordination Infrastructure One of the satellite operators we are Working with and building out this Technology they received an allocation Of spectrum from the international Telecommunications Union and they then Received 70 letters from different Operators saying they were going to Interfere They then had to go to each one of these Different operators and prove to one of Each one of them why they would not

Interfere with them using simulation Technology that takes a week to set up a Given simulation over 24 hours to get a Result and writing letters back and Forth having their engineers and writing And phds writing letters in order to go Through the coordination process We have automated portions of this Process to expedite how satellite Operators work together and then monitor Post coordination to ensure compliance Of these agreements In doing so we're protecting satellite Operator's most valuable asset which is Their Spectrum rights next slide You can think of us as your One-Stop Shop for all Spectrum management we Built in an operator's safety net so That any new filings coming out of the International telecommunications Union Are run through our simulation Technology and flag to the operator on Which ones to pay unique attention to And to go through the coordination Process with We then simulate at scale the Spectrum Interference interference that will Occur and clear communication Pathways Between Earth and space as well as Between Operator Operator relationships And operator to regulator let's jump Into the demo You can see here as we open up the 24 7x Platform I have notifications these

Notifications include all the new Filings that have recently been released New allocations of spectrum what is Spectrum what does the market look like Today Which one should I be paying attention To as an operator and going through Coordination agreements with Which new filings or have there been Modifications on filings that I already Have coordination agreements with and is There new data that has been Communicated back and forth between me And another operator that I'm currently Coordinating with If we run into actually running a Simulation which we're going to go Through today you can see the portal of All the different agreements we're Currently working through this would be The One-Stop shop for all operators to See their coordination agreements They're working through their Simulations everything logged all Correspondence back and forth logged Accordingly for ease of reference and Proof that you are working through those Coordination agreements We go through and we'd run a specific Simulation this will mean that in the Back end the system is actually running How multiple satellites will be orbiting Earth at a regular Cadence and how often Their likelihood is to interfere with

Each other and if it goes beyond any of The thresholds based on calculations Approved by the international Telecommunications Union We click in and we can see one of them As actually a fail this is the Equivalent power Flex density equation It is a fail meaning that in real time If this was to occur the operator would Have received an outage or an Interference event that would have had a Service issue In this instance we can work directly With the operator and this Operator Operator sandbox to request more Information to de-escalate this risk If it is a pass as in the thresholds are Not exceeded we can go ahead and Complete that coordination agreement and Notify the regulator that it has been Completed closing the circle This is immensely critical again as this Is what we depend on for all the Services that we rely on here on Earth Is clear passive communication and That's what Magna star is bringing to The table let's jump back into the Presentation Next slide We are building this into a Semi-autonomous Enterprise signal system Next slide We have achieved alignment with 11 Geostationary operators 14

Non-geostationary operators eight Government organizations across military Regulators and international bodies who Have signed letters of intent prepaid to Be a part of our early adopter program And we have won a military contract next Slide They see this being valuable with both As internal and external solution Because we're building the coordinations Directly in and we're the first company To conduct that work both for on-demand As well as real-time long-term Simulations and because we're planning On building this in to a spectrum and Stage The only way that we can create a Secondary market for spectrum and Release Spectrum back into the ecosystem Is by ensuring that Spectrum as it's Being subleased will not interfere with Others and that the coordination Agreements are being completed and That's why we're uniquely positioned at A company to bring this to fruition We're also within their Community I am a Delegate of the international Telecommunications Union I a part of the United Nations burning all new Regulations forward for satellite Communications Next slide that's where we're gonna have To end it I'm so sorry we're out of time Give a round of applause

Let's start with Mar Oh there you go you're giving me the Floor uh okay it seems like you're Building this uh exchange so there's Some regulators and some operators the Regulator is an international body I Assume what does it take for you to get To work with this International body and Then you know you becoming the standard Absolutely so the international body is The international telecommunications Union and then all the administrations So each country has their own Administration which does the Spectrum Allocations as well and they all tie up To the international telecommunications Plan we are members of the international Telecommunications Union as Canadian Delegates so we are already a part of The community that builds all rules and Regulations and are moving forward to This technology being the new standard Which is seen as needed by all the 11 Geostationary operators 14 Non-geostationary operators and eight Government organizations including Multiple of the regulators and International body that are aligned with Our objectives towards making this a new The new standard if you put a timeline On it like at what point you know if you Want to request Spectrum you have to use Magna Stars software or forms or Whatever or simulations

Do you have a sense is it a year 10 Years like I have no idea how slow these People are how fast they are yeah so I Think that we see it specifically as we Will be achieving that Benchmark within The next two to three years okay thanks Dana yeah um I'm just curious I mean so Do they without you what happens I mean Because I actually started in the Cellular industry 100 years ago so you Know we had rowing agreements across the Carriers and and you know companies sort Of work together I mean different issues Because you didn't have satellites you Were dealing with you know fixed assets But the Spectrum issue was a meaningful One and so I guess I'm just trying to understand Does it have to be an independent body Does it have I mean Yeah so it's great that you come from The the terrestrial Market Um in terms of the difference one of the Differences between the terrestrial and The space Market is the Dynamics of Space typically today in order to defuse Interference issues on the terrestrial Market they'll send physical trucks to Locations to sensor Spectrum that's much Harder to do in the space ecosystem Which is why we are leveraging a data Solution to predict when interference Will occur And at the same point we actually are

Seeing quite a bit of traction with the Operators we're working with today that They would like us to involve more Terrestrial markets specifically because They're seeing more interference Potentially between the space and Terrestrial ecosystem the way that I see Ourselves playing into that is that we Are building the technology that enables All operators and Regulators to assess How as we go from 8 000 satellites to 100 000 satellites how these Constellations will co-exist and affect One another we are building the Enablement tools to enable every single Satellite operator and regulator to Perform the advanced calculations Because currently in the process today It's them manually going through the new Filings running the simulations Themselves in one solution producing Reports in another solution going back And forth between operators and another Solution with emails and letters back And forth one another and monitoring Post coordination is a pretty big Question mark so we look at that entire Process and how we can build in Semi-autonomous systems into that to Expedite the process and ease it because Currently today it would take months to A year year even two years to go through A given coordination agreement and we'd Like to get that into a much faster

Expedited rate so that operators can Focus on operating their satellites but Today it's not a requirement that they Use the third party I mean you would like it to be I assume Yes so we are looking for a regulatory Mode within the solution operators can Use this technology today most operators We've been working with would like to Start using it whether the regulatory Regime are recommending it or not Specifically because we have so much Advancements in the simulation speed and Because they can keep a consistent Cadence of all their coordination Agreements that they're working through And applying this in real time because It directly ties to their revenue If you have outages and Communications It directly ties into their service License agreements and that hits the Revenue directly Could you talk about your first few Customers how long did it take to sell To them what does an average deal look Like Yeah so in terms of our first few Customers we are a 20-month-year-old Company we'll hit our two year mark in December so we have already we have one Military customer we retain that Military contract four months ago so Within our first year and a quarter and Then we received our second we actually

Just opened our early adopter program Last week we've had four satellite Operators sign on already to become Early adopters starting in February of Next year and we have early beta testers Who are testing the technology today Charles related to that can you I don't Know much about the slide industry can You tell me what's the balance between Government and Commercial how Concentrated is it in terms of the Number of operators I'm just trying to Get my arms around with the customer Environment looks like yeah so there are Currently 300 that we can attest to 300 Active satellite operators Um in terms of percentage-wise uh from Commercial to government it's actually Massively increasing on the commercial Side there are many more commercial Operators so we have 300 active Satellite operators 1500 new space Satellite operators who are coming into Fruition this is a massively growing Sector and we also have 183 Administrations who are allocating Spectrum on a regular basis and and then Also we are bridging into the Terrestrial Market as well in terms of The average deal side I think that was Also a question Um we're unable to say that on stage Today but we do have three different Models of how we're pricing this one is

A very low bear to entry model where we Charge for simulations we can get every Single startup every single University Every single Administration on the Platform the second one is an Enterprise Edition where we have a fixed cost on a Yearly basis which is in skew what They're used to paying today their user Paying today about 70 to 100 000 per User and so we are in SKU with that and Then the third is actually taking a Portion of the spectrum exchange within The platform We'll go tomorrow and then Matthew yeah I have a couple questions one is those I Mean I know there's a lot of International satellites as well are you Able to sell is that U.S or are you able To sell to China Russia you know and do They need to be in the platform for you To know whether folks are going to be Aligned and there's going to be Interference like do you need everybody To be data to be able to run a Simulation as accurate so we can run the Simulations today using the Telemetry Information and the Telemetry is where The satellites are at a given time and Where they're likely to be within two Days we also have the Spectrum filings Because many of those filings actually Are public of which bands they have the Capacity to use so we can predict Interference in that capacity we are

Canadian companies so we are outside of Specific specific Regulations that are governed in U.S Defense so that's how we actually can Sell to a global market quite quite Efficiently we are working with Operators in the United States operators In Canada in Europe and as well we're Onboarding folks in Asia as well um that Is how we're approaching the market and In terms of pricing my understanding is That it's very top heavy so like the top 50 operators have 10 or more satellites And there's a long Tale of you know operators do you charge Per satellite or do you charge I mean You said per user as your second model Is user operator or satellite what is User so operator as our user is per user So per person at the desk in the Technology we considered a per satellite Pricing model other folks have Considered that as well I find that it Disincentivizes the larger players from Entering the platform and we want to Make sure that we get as many operators As possible especially because those Larger players tend to have more Spectrum and they're the ones that are Very encouraging of us building a Spectrum exchange because they'd like to Sub these portions of that Spectrum to Other markets there's been 250 billion Dollars spent on spectrum allocation in

The United States alone and that's the Market we're going after to make that More feasible for everyone to get access To I think my last question is when can You sell to SpaceX I think they're like 20 of the market Um SpaceX SpaceX is also a member of the International telecommunications do they Do it themselves I mean I'm curious you Know they have the most satellites of Anybody out there right yes Or can you sell to them we can sell to Them okay We'll leave it there thank you so much Give a round of applause