Private capital targets mission-critical software power and platforms in new space economy

by Clarence Oxford
Los Angeles CA (SPX) Dec 09, 2025

Axle Point Capital and Balerion Space Ventures are directing new private capital into companies that build core infrastructure for the expanding U.S. space and defense economy, from mission software and guidance systems to deployable microreactors and high-temperature reactors. Axle Point's first transaction is a strategic equity investment in Odyssey Space Research LLC, a flight software and engineering firm that supports NASA and defense programs, while Balerion has taken stakes in Antares Industries, Samara Aerospace, and Valar Atomics, three companies focused on spacecraft platforms and nuclear energy systems for defense and industrial users.

Odyssey Space Research develops and sustains flight software and guidance, navigation and control (GN and C) systems for missions that range from small satellites to large human-rated spacecraft. Its work covers flight software development, simulation, mission analysis, avionics integration and test, spaceflight simulation and analysis, and human spaceflight operations, using software frameworks and tools that support configurable mission solutions. Odyssey's teams contribute to missions that include proximity operations such as rendezvous and docking, and support both uncrewed and crewed spacecraft operating in the vicinity of the International Space Station and in other complex orbital regimes.

A key growth driver for Odyssey is NASA's RPOC V contract, a five year award that extends the company's role in integrated GN and C assessments and trajectory and flight software integration. Under RPOC V, Odyssey supports commercial cargo and crew vehicles that approach and depart the ISS, as well as GN and C and trajectory work for Orion program missions. The contract continues a workload where Odyssey's analysis and software integration tasks must meet NASA human spaceflight certification and safety requirements, reinforcing its position as a supplier of mission-critical software and engineering to U.S. government customers.

Axle Point Capital, based in Newport Beach, completed the Odyssey transaction in partnership with the ONE Bow River National Defense Fund, which provided equity capital for the acquisition. The deal establishes Odyssey as a platform investment for Axle Point as it pursues additional aerospace, defense, and government services opportunities with institutional co investors. The firm's strategy centers on hard-to-access sectors such as space and defense, where programs often require long-term technical support, regulatory approval, and specialized engineering capabilities.

"Axle Point Capital was founded to identify and unlock value in hard-to-access sectors like space and defense," said Gerik Degner, CFA, Managing Partner. "We are thrilled to partner with ONE Bow River and the exceptional team at Odyssey and look forward to leveraging our sector expertise to help accelerate its growth and expand its impact on vital national space programs."

"Odyssey represents the very best of innovation in spaceflight software and guidance, navigation, and control systems for manned and unmanned spaceflight and robotics. The Odyssey team is stellar from top to bottom," added Kevin O'Neil, Chief Investment Officer of ONE Bow River. Steven Joanis, Senior Managing Director, added, "It is a privilege to partner with Axle Point, whose market understanding, strategic vision, and raw tenacity were pivotal in architecting this transaction and bode well for the valuation acceleration to come. This investment underscores our shared commitment to advancing technologies that are vital to our nation's capabilities in space."

Balerion Space Ventures is pursuing a parallel thesis across frontier technology, announcing investments in Antares Industries, Samara Aerospace, and Valar Atomics as part of a portfolio designed around systems that build, power, and operate critical space and industrial infrastructure. Antares is developing modular, transportable microreactors intended for rapid deployment in contested or remote environments to provide autonomous, resilient power for defense operations and critical infrastructure. These systems target growing demand for local, secure energy as defense spending increases and policymakers place more emphasis on energy security and grid resilience.

Samara Aerospace is building high precision spacecraft platforms that use advanced attitude control technologies to deliver agile on-orbit performance. Its satellite buses are aimed at missions that require fine pointing and maneuverability, including next-generation Earth observation and other constellations that depend on accurate pointing and rapid retasking. As government and commercial operators expand orbital infrastructure, platforms like those developed by Samara are positioned as enabling assets for imaging, data relay, and other services that rely on stable, responsive spacecraft.

Valar Atomics is focused on nuclear systems for heavy industrial power and hydrocarbon fuel production, and reports that it is the first U.S. nuclear startup to reach criticality at its Utah testing site. The company is advancing high-temperature reactors designed to provide industrial heat and support clean fuel production, and has achieved cold criticality under Project NOVA and been selected for U.S. Department of Energy efforts such as the Nuclear Reactor Pilot Program and Advanced Nuclear Fuel Line Pilot Program. Valar has begun construction of Ward 250, its first nuclear test reactor in Utah, after completing Ward Zero, a non nuclear prototype facility, and is working with partners including the Philippines Nuclear Research Institute as it develops TRISO-fueled, helium-cooled, graphite-moderated reactor technology for industrial users and AI infrastructure that require high reliability power.

"Launch costs are collapsing. Defense budgets are rising. Dual-use technologies are being adopted at a record pace," said Phil Scully, Co Founder and General Partner at Balerion Space Ventures. "The companies we're backing are building the foundational systems that will power the next trillion-dollar economy. Agile spacecraft, advanced nuclear systems, and deployable microreactors - these are the technologies that will determine who leads in space, defense, and domestic manufacturing over the next decade as we enter a new industrial era driven by mass access to space. Balerion is excited to back the companies developing the infrastructure that will power the space economy."

"These companies are building the enabling infrastructure that the broader space and defense ecosystem will rely upon for decades," said Daniel Wallman, Partner at Balerion. "As capital pours into the sector, our focus remains disciplined on backing mission-critical platforms with real technical depth and scalable economics. Antares, Samara, and Valar exemplify the kind of durable enterprise value being created at the frontier of this asset class."

Balerion states that the funding will support product development, facility build out, and progress toward commercial milestones at each of the three portfolio companies as they expand work with defense, civil, and commercial customers. The firm plans to discuss the investments and its view of the market at its annual general meeting in Bentonville, Arkansas.