Tomorrow.io Co-Founder Explains Backing out of SPAC, Maintains Satellite Constellation Plans
Weather intelligence company Tomorrow.io is still pursuing its plan to build a satellite constellation, despite the end of its SPAC deal, the company’s co-founder told Via Satellite.
Tomorrow.io and special purpose acquisition company (SPAC) Pine Technology Acquisition Corp. announced Monday that they terminated their merger agreement, with Tommorrow.io paying $1.5 million as part of the termination deal.
“We took the SPAC route because at the time, given the market conditions, we thought that was the best way to fund the company moving forward. That changed, and we do not think that this is the best way right now. We were very lucky to be able to not go through with [it],” Co-founder and Chief Strategy Officer Rei Goffer told Via Satellite.
Goffer said that while the company received a favorable SPAC deal, the overall market performance of other SPACs gave his executive team pause. “It’s just not a good time for growth stage companies to go public right now,” said Goffer. “It’s not just space companies. Pretty much every growth stage [Space-as-a-Service] company or tech company that went public in the last six to nine months finds itself at 20% their valuation now, and that’s a not a pleasant place to be in unless you have no other choice. We had other choices.”
Goffer said that Tomorrow.io, which sells software that helps companies and governments deal with the business impact of weather, is still going forward with its plan for a constellation of 32 radar-equipped satellites to collect global precipitation data.
“This does not impact our operational plan whatsoever,” Goffer said, adding that the company will have additional news soon on funding and the space program.