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The Two-Year Rule: How ATLAS Space Operations Cracked Government Sales in Space Tech

In 2015, when most Silicon Valley founders were chasing consumer apps and enterprise SaaS, Brad Bode saw a different opportunity. Satellite operators were still shipping physical hardware across the globe just to download their data.

“Within the government, they weren’t even using external or commercial antenna systems almost ever,” Brad explains in a recent episode of Category Visionaries. “Everything was bespoke. They would put up a new antenna for a satellite program. They would take a stack of hardware and ship it across the globe.”

This inefficient process involved managing VPN connections, complex IP routing, and infrastructure maintenance at each location. Brad, having spent 12 years at aerospace giants TRW and Northrop Grumman, knew there had to be a better way.

From Ground Station to Ground Software

ATLAS Space Operations began with a simple thesis: use the cloud to eliminate satellite communication complexity. But the category didn’t even have a name yet.

“Prior to this, it was ground station as a service. And then prior to that, there was really no term for what we did,” Brad recalls. As they evolved, they realized they weren’t just providing infrastructure – they were delivering a comprehensive software solution.

“We’re really a SaaS provider, but what are we providing? Ground software. Thus ground SaaS – ground software as a service. Because we do more than just give you access to infrastructure.”

The Government Sales Learning Curve

The team quickly discovered that selling to government agencies required a completely different playbook. Traditional B2B marketing tactics were useless. As Brad notes, “There’s no amount of Google Adwords you could do to help you with the government.”

Instead, success required starting small. “The best way to start accessing government money and making the government aware of who you are as a company is probably through these small business initiatives,” Brad explains. These contracts, typically ranging from $1-2 million, helped build the crucial past performance credentials needed for larger opportunities.

The breakthrough came when ATLAS won a contract with NOAA to put an antenna in Ghana. But even with this victory, they learned a crucial lesson about government sales cycles: “You must anticipate that it will take longer than you think. If you have a six month runway, that’s not going to do it.”

Building a Dual Revenue Engine

Rather than relying solely on government contracts, ATLAS developed a hybrid approach. Today, they maintain a 50-50 split between government and commercial revenue, providing stability during long procurement cycles. Their government subsidiary, Freedom Space Technologies, is projected to reach 80% of revenue within six months.

This dual-stream strategy proved essential as they discovered each government agency operates differently. “Each agency has been making it easier to bid on those programs,” Brad notes, but success still requires understanding the subtleties of each organization’s procurement process.

The Future of Space Communications

Looking ahead, ATLAS is positioning itself for the next evolution in satellite communications. Brad envisions a future where multiple technologies – traditional RF, space relays, and laser communications – all work seamlessly together.

“You should not be concerned about where on Earth the data is getting,” Brad explains. “You should be more concerned about the amount of data and the timeliness in which you get that data.”

With over $37 million in funding and a growing presence in both government and commercial markets, ATLAS Space Operations has proven that success in space tech requires more than just innovative technology. It demands patience, strategic planning, and the ability to navigate complex government relationships while building a sustainable commercial business.

For B2B founders targeting government contracts, the lesson is clear: plan for a minimum two-year runway, start with smaller contracts to build credibility, and don’t rely on traditional marketing tactics. In the government market, relationships and past performance trump everything else.

 

Actionable
Takeaways

Build a Two-Year Government Sales Runway:

Brad emphasizes, "You must anticipate that it will take longer than you think. If you have a six month runway, that's not going to do it." B2B founders targeting government contracts need at least a two-year runway unless they have robust commercial revenue to sustain operations.

Start Small with Government Contracts:

"The best way to start accessing government money and making the government aware of who you are as a company is probably through these small business initiatives," Brad notes. Success in government sales requires starting with smaller contracts ($1-2M) to build credibility and past performance credentials.

Develop Agency-Specific Strategies:

"Each agency has been making it easier to bid on those programs," Brad shares. Different government agencies have distinct procurement processes and requirements. Success requires understanding and adapting to each agency's unique approach.

Balance Commercial and Government Revenue:

Brad explains their 50-50 revenue split between government and commercial, with government projected to reach 80%. Having both streams provides stability and multiple growth paths.

Prioritize In-Person Relationships:

As Brad's team says, government sales is "a contact sport." Traditional B2B marketing tactics don't work - success requires building relationships through in-person meetings and industry events: "There's no amount of Google Adwords you could do to help you with the government."

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