We recently published a list of 10 VLEO Technology Stocks and Startups to Watch in 2025. In this article, we are going to take a look at where Albedo stands against the other VLEO technology stocks and startups to watch in 2025.
Very Low Earth Orbit (VLEO) refers to altitudes below 450 km, much lower than traditional low Earth orbit (LEO), which typically includes altitudes between 500 km and 2,000 km. This emerging sector in the space industry offers numerous advantages, including lower latency for communications, higher-resolution imaging capabilities, and reduced launch costs. However, operating in VLEO also presents challenges such as increased atmospheric drag, requiring innovative propulsion and station-keeping technologies. VLEO technology is gaining traction as companies seek more efficient ways to deliver high-speed broadband, enhance Earth observation capabilities, and support national security initiatives. The increasing demand for global connectivity, precise geospatial intelligence, and real-time satellite-based data services is driving investments in VLEO solutions. Governments, defense agencies, and commercial enterprises alike are exploring VLEO applications for sectors such as telecommunications, agriculture, disaster response, and environmental monitoring.
From an investment perspective, VLEO-related stocks and startups offer exposure to one of the fastest-growing segments of the aerospace industry. Companies involved in VLEO range from established aerospace giants developing cutting-edge satellite technology to emerging startups focused on specialized propulsion, high-resolution imaging, and space-based communication networks. The rise of private-sector space initiatives, alongside increased government contracts, provides a strong growth outlook for businesses operating in this niche – for reference, external research boutiques such as Juniper Research estimated that investments into VLEO will reach $220 billion by 2027, from only $17 billion in 2024, implying an annualized growth rate of 135%.
Investors interested in space technology stocks should consider VLEO companies for several reasons. First, the commercialization of space is accelerating, with increasing private-sector involvement from leading firms. Second, VLEO satellites can provide more cost-effective alternatives to traditional LEO and geostationary orbit systems, creating opportunities for companies offering facilitatory or complementary technology in this space. Finally, the sector benefits from strong long-term tailwinds, including advancements in artificial intelligence, cloud computing, and 5G networks, which require faster and more efficient space-based infrastructure. With this, we will take a look at some of the best VLEO stocks to invest in.
Our Methodology
We shortlisted 10 names, which include both publicly traded companies as well as private companies and startups. We ranked the names by market capitalization or the amount of funding raised as we believe the company’s size correlates with the potential to gain a substantial market share by either facilitating or complementing the rapid growth of the VLEO technology market. For publicly traded companies we also include the number of hedge funds that own it.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Albedo
Latest Valuation/Funding Estimate: $93 million funding raised
Albedo is a cutting-edge space technology startup developing VLEO satellites designed to capture ultra-high-resolution Earth imagery. Unlike traditional satellite imaging companies, the company’s approach leverages VLEO’s lower altitudes to achieve unmatched image clarity at a fraction of the cost of existing high-resolution systems. By positioning satellites closer to the surface, Albedo can provide commercial and government customers with detailed optical and thermal imagery that was previously only available from aerial platforms or classified military satellites. The company’s strategic advantage lies in its ability to deliver 10-centimeter optical resolution, a game-changer for industries like urban planning, agriculture, defense, and disaster response. Traditional Earth observation satellites in higher orbits typically offer resolutions of 30 centimeters or more, making Albedo’s capabilities highly valuable for applications requiring precision, such as infrastructure monitoring and environmental analysis. It is one of the best VLEO stocks on our list.
As an investment opportunity, Albedo represents a compelling bet on the future of commercial Earth observation. With the growing demand for real-time, high-definition satellite imagery, industries ranging from insurance to autonomous transportation are increasingly reliant on geospatial intelligence. Albedo’s VLEO approach not only enhances image quality but also reduces latency and data costs compared to legacy systems. With regulatory approval from the US government to operate at this unprecedented level of detail, the company is poised to disrupt the remote sensing market – external research boutiques estimate a $48 billion total addressable market, implying tremendous market share gains for Albedo. With significant venture capital backing and strong market interest in high-resolution geospatial data, the company is a promising startup to watch in the rapidly evolving space economy.
Overall, Albedo ranks 7th on our list of VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of Albedo as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Albedo but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
