UK Satellite Data Start-Up Raises $3.4m from Long Journey to Expand AI-Based In-Orbit Compression Technology

The Compression Company, a UK-based satellite data start-up founded by Imperial College London students Michael Stanway and Joe Griffith, has secured $3.4 million in new funding led by Long Journey, an early investor in SpaceX, Uber and Anduril. The investment marks a significant step for the young company, which was established last year and previously backed by Entrepreneur First.

The company focuses on AI-driven data compression technology that operates directly onboard satellites. Its software reduces file sizes by more than 95%, addressing one of the most significant bottlenecks in the space data industry: limited bandwidth for transmitting information back to Earth. As the number of Earth observation satellites continues to grow rapidly — with more than 5,000 expected to launch over the next decade — the volume of data generated in orbit is expanding at an even faster pace.

However, satellites have restricted bandwidth and short communication windows when passing ground stations. Research indicates that only about 2% of the data collected by satellites is actually transmitted back to Earth, with the rest delayed, degraded, or discarded. The Compression Company aims to change this dynamic by preserving bandwidth for high-value data, allowing satellite operators to extract more usable information from existing infrastructure rather than relying solely on launching additional satellites.

According to CEO Michael Stanway, the space sector has invested heavily in capturing data but insufficiently in improving its transmission. Long Journey’s managing partner, Lee Jacobs, described the start-up’s software-first approach as both ambitious and immediately practical for satellite operators in an increasingly data-driven space economy.