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 Satellogic Inc (NASDAQ:SATL) stands against 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).
A satellite hovering in space capturing Earth Observation data.
Satellogic Inc (NASDAQ:SATL)
Latest Valuation/Funding Estimate: $434.93 million market capitalization
Number of Hedge Fund Holders: 4
Satellogic Inc (NASDAQ:SATL) is a pioneering Earth observation company leveraging VLEO satellites to provide high-resolution imagery at an unmatched cost efficiency. Unlike traditional satellite operators, SATL has developed a vertically integrated approach to designing, manufacturing, and operating its own fleet of satellites to drive down costs while maintaining industry-leading imaging capabilities. By deploying VLEO satellites at lower altitudes than traditional Earth observation systems, the company delivers sharper imagery with higher revisit rates, making it a valuable resource for industries requiring real-time geospatial intelligence. With a 137% return in the past year, SATL is one of the best VLEO stocks on our list.
Satellogic Inc (NASDAQ:SATL)’s high-resolution optical satellites can capture sub-meter imagery at a global scale. This capability is critical for applications in agriculture, urban planning, natural resource management, and defense intelligence. SALT’s unique ability to offer affordable, frequent imaging is a game-changer for customers who need continuous monitoring of assets, supply chains, or environmental changes. Additionally, its use of machine learning and AI for automated data analysis further enhances the commercial value of its satellite imagery.
From an investment standpoint, Satellogic Inc (NASDAQ:SATL) is well-positioned in the rapidly expanding Earth observation market, which is projected to grow at a double-digit CAGR as demand for real-time, high-resolution satellite data increases. SATL is already making tremendous progress in gaining market share and building a strong foothold in the rapidly growing VELO market – the company signed a multi-year contract with Brazilian Air Forces in February 2025 to provide low-latency satellite imagery for defense and security operations within the Brazilian territory. We believe this event is just another confirmation of SATL’s strong execution and leading position in a promising and rapidly growing VLEO market.
Overall, SATL ranks 5th on our list of VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of SATL 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 SATL 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.
