Canopy Aerospace
“Heat Shields for the most challenging environments in the galaxy.”
Benedict Capaldi
November 15, 2022
Championing the founders writing the next chapter in America's story.
“Heat Shields for the most challenging environments in the galaxy.”
Key Points
Matt Shieh (CEO) and John Howard (CTO) are building a fully integrated factory for Thermal Protection Systems (TPS, heat shields) for use on space and hypersonic vehicles.
Matt is a former U.S. Air Force officer and weapons expert. John Ph.D., is a materials scientist, who founded Microsphere Materials Solutions, a manufacturing company advancing U.S. Navy systems.
Future markets include heavy industry, nuclear power plants, and high performance terrestrial vehicles, which they claim is a $100B+ Total Addressable Market.
Canopy’s factory will integrate software with advanced manufacturing techniques like 3D printing.
Via a Space Act Agreement, they posses the right to manufacture and commercialize NASA’s proprietary TPS technology.
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Feeling the Heat
2200 degrees Celsius (3992 F)
That was the temperature on the leading edges of NASA’s Orion Spaceship crew module as it screamed towards the earth at 20,000 mph. (I happened to have a front-row seat to the December 2014 launch. I was a newly minted Naval Officer onboard the USS ANCHORAGE, the ship tasked with recovering the bobbing capsule).
Those temperatures would shatter most of humanity’s hardest materials, and every space and hypersonic vehicle is subject to them. NASA has an entire department dedicated to developing materials that attach to space vehicles, called the Thermal Protection Materials Branch. These Thermal Protection Systems (TPS) are either re-usable or ablative, which means they control heat by decomposing.
The aerospace industry is rife with supply chain problems, and there is no shortage of literature attesting to this. TPS, used by every space vehicle, is incredibly expensive. There are few suppliers, and orders orders take as long as 3-4 years to fulfil. That’s likely why NASA decided to award Canopy a Space Act Agreement, giving Canopy the right to use their TPS formula to manufacture the critical technology.
Vision
Canopy is building a “fully integrated factory for thermal protection systems.” The founders’ vision is to put Canopy heat shields on every vehicle travelling faster than Mach 5 (3800+ mph). For now, that means selling to companies manufacturing space and hypersonic vehicles.
Eventually, Canopy will broaden its scope, manufacturing all types of temperature resistant materials for “terrestrial” uses, to include...
High performance vehicles (brakes, exhausts, engine manifolds)
Power generation facilities, like nuclear plants
Industrial use cases where things get really hot, like heavy industry
You can see how nailing the “extra-terrestrial” market, where part tolerances are small and consequences for poor quality are deadly, could bode well for their domination of the terrestrial market.
Business Model
Canopy is, first and foremost, an advanced manufacturing company. They’re building a software-enabled, fully integrated factory, and they’re using 3D printing to lower costs. The resulting TPS systems will be “smart composites.” They’ll integrate well with vehicles for systems integration.
"Space is an unforgiving environment, so integrating sensors that complement vehicle systems will allow crews to monitor structural integrity pre, mid, and post-flight, which will lead to better predictive maintenance and also set a new standard of safety for the space industry."
This, coupled with their expertise in manufacturing, should position them to provide ongoing maintenance and repair of the temperature resistant materials they build. Their fully-integrated factory of the future has three elements:
Software offering customizability and data, like cost and delivery timeline
Efficient manufacturing, made possible by 3D printing and software-enabled processes
Ongoing maintenance, repair, and support, with consequent recurring revenue
So how big is the market for Canopy?
They estimate the Serviceable Addressable Market (SAM) for aerospace and Defense TPS will be $11B in 2030
Use cases include Re-usable rockets, orbital spacecraft, re-entry capsules, and hypersonic weapons
They estimate the TAM for terrestrial applications will be $100B in 2030
Industry Tailwinds
The high cost of getting things into space is the main inhibitor of the space economy's growth. And that cost is falling quickly. Below, note the Log scale, Citi’s 2040 forecast in the corner, and the fact that some exceptional companies like Blue Origin and SpaceX have demonstrated material cost savings. That’s a positive sign for the industry. We can expect that cost savings know-how to diffuse throughout the ecosystem.
Actual projections for the size of the "space economy" vary greatly. United Launch Alliance's estimate is $9B in 2030, and Bank of America places it at $1.4T. We're in the early days, but most important to Canopy is that the infrastructure and the enabling technology is being built.
Track Record
As of November 2022, Canopy has...
A Space Act Agreement with NASA, the "formula" needed to manufacture NASA's TPS
$83M worth of Letters of Interest (LOIs) from future customers
Been accepted into Techstars' LA Fall Space Cohort and the Starburst Accelerator
An AFWERX (Air Force) STTR (Small Business Technology Transfer) grant for hypersonic TPS development
Prototyped 3D printing of TPS
Demonstrated wireless sensor technology integration in TPS
Raised its first round of capital to recruit more team members and set up their pilot factory
An impressive list of investors including Hivers & Strivers, PenFed, Industrious Ventures, Valor EP, Caruso Ventures, Mana Ventures, and Gaingels
Call to Action
Any companies building space vehicles requiring thermal protection should contact Canopy at [email protected].
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