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 Aliena 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).
Aliena
Latest Valuation/Funding Estimate: $7 million funding raised
Aliena is an emerging space technology startup specializing in electric propulsion systems designed to extend the operational lifespan of VLEO satellites. One of the biggest challenges of deploying satellites in VLEO is atmospheric drag, which significantly shortens mission durations unless efficient propulsion is used for station-keeping. Aliena’s cutting-edge propulsion technology provides a cost-effective and compact solution to this problem, allowing satellites to operate in lower orbits for extended periods while maintaining stability.
The company’s proprietary Hall-effect and miniature plasma thrusters enable precise maneuvering and efficient orbit adjustments, making them ideal for the new generation of VLEO satellites focused on Earth observation, communications, and defense applications. By helping satellites stay in orbit longer while using minimal power and propellant, Aliena’s technology enhances the economic viability of VLEO-based missions. This is particularly important as demand for high-resolution imaging and low-latency connectivity grows at double-digit rates, requiring constellations that can maintain optimal operational altitudes without frequent replacements.
As more companies and governments look to deploy satellites in VLEO for commercial and security applications, efficient propulsion will be a key enabler of long-term success. Although the startup is still in its early stages with less than $1 million in annual revenue, the strong industry interest and increasing adoption of its propulsion solutions position Aliena as a critical technology provider in the rapidly expanding VLEO ecosystem, making it an attractive startup to watch in the space industry.
Overall, ALIENA ranks 9th on our list of VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of ALIENA 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 ALIENA 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.