NEWS | August 21, 2026

For 11 space startups, the “valley of death” just got a little more navigable.
At the Fed Supernova conference on Thursday, SpaceWERX named the newest recipients of its Strategic Funding Increase (STRATFI) program—money meant to help bridge the notorious gap where promising SBIR/STTR Phase II prototypes go to die before they ever scale into Phase III.
“STRATFI is a critical tool for the Space Force to signal demand to industry and private investors, de-risk innovative technologies, and empower non-traditional and small businesses to scale game-changing capabilities faster, more affordably, and at the speed required to maintain space superiority,” said SpaceWERX director Arthur Grijalva in a statement.
Money matching: The STRATFI and Tactical Funding Increase (TACFI) programs match SpaceWERX dollars with outside investments—strengthening ties between the Space Force and the private sector.
For 2026, the STRATFI program awarded $562.5M—including funds from SpaceWERX, program offices, and non-traditional businesses and private capital. $245M was matched by private capital in this year’s cycle.
Prior to the recent awards, over $700M has been awarded through STRATFI/TACFI to innovative space startups, matched by $1.9 billion in private funds.
Previous STRATFI recipients have subsequently gone on to raise major funding rounds including Impulse Space, K2 Space, Apex, True Anomaly, and Astranis.
Winner’s circle: This year’s STRATFI awardees cover capabilities ranging from orbital energy grids to debris removal:
The awards are just the starting line for each of these companies. Now, they must work with the Space Force and SpaceWERX to finalize contract terms, hit program milestones, and mature their technologies to cross the same “valley of death” STRATFI aims to bridge.