The Daily Broadcast: DND Space Cybersecurity Challenge; Axiom Space Closes $525M Round

The Daily Broadcast: DND Space Cybersecurity Challenge; Axiom Space Closes 5M Round

Canada’s Defence Opens Flatsat Cybersecurity Challenge

The Department of National Defence, through Innovative Solutions Canada, has launched a new funding challenge to develop laboratory-based flatsat platforms for cybersecurity experimentation. The initiative targets a growing need for secure hybrid space networks as defence operations increasingly rely on low Earth orbit satellite constellations.

A flatsat is a ground-based satellite that integrates critical satellite subsystems, enabling controlled cybersecurity testing without deploying to orbit. Unlike operational satellites, which typically carry one or two payloads, the challenge requires designs to integrate multiple payload types—communications, remote observation, navigation, scientific measurements, weather monitoring, and others. This diversity will support a wider range of cybersecurity experiments and validation of secure satellite software and hardware architectures.

The government will award two contracts under the challenge, with total potential funding of $4 million. Each selected project can receive up to $2 million for a maximum 20-month duration. The challenge is open to Canadian small and medium-sized businesses—for-profit entities incorporated in Canada with 499 or fewer full-time equivalent employees. Applicants must conduct research and development activities within Canada, with at least half of company wages going to Canadian employees and a majority of the full-time workforce and senior executives residing domestically.

Interested firms must submit proposals by July 2, 2026 at 14:00 Eastern time. The flatsat platform is designed to support design, testing, and validation of defences against the dynamic traffic loads and segment failures that could affect hybrid space networks in contested operational environments.

Axiom Space Secures $525 Million for Orbital Infrastructure

Axiom Space has closed an oversubscribed financing round totalling more than US$525 million, significantly outpacing the company’s initial target. The raise is US$175 million more than the US$350 million figure previously announced in February, reflecting strong investor appetite for commercial orbital infrastructure.

The Axiom Station assembly sequence. | Source: SpaceQ

The round saw MUFG Bank, Japan’s largest financial institution, join Axiom’s cap table. Takumi Hashizume, Managing Director and Head of the Space Innovation Office at MUFG Bank, noted the investment reflects confidence in commercial human spaceflight: “Axiom Space is building the orbital infrastructure that will define the next era of the space economy. Through our Space Innovation Office, we are committed to supporting the companies that make commercial human space exploration and the global space economy sustainable for the long term.”

Axiom will direct the new capital toward three primary areas: development of the Axiom Station (a planned commercial space station module), production of the Axiom Extravehicular Mobility Unit (spacesuit), and execution of commercial human spaceflight missions. The company must now meet specific milestones tied to NASA contracts and investor expectations as it continues to build permanent orbital assets for the emerging commercial space economy.

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