Where are we today?
Primal Space Systems has made excellent progress in GPEG software development over the past two years. We have met and exceeded our planned milestones for the initial Seed stage of the company.
As you may recall, the GPEG system comprises three software components: the GPEG encoder, GPEG server, and GPEG client. For the seed stage of the company, Primal Space committed to developing the GPEG encoder software. This milestone has been accomplished by writing more than 180,000 lines of code. Our GPEG encoder software has also been integrated into more than 10,000,000 lines of code that comprise the Epic’s Unreal 4 Engine, one of the most widely used game engines in the industry.
Primal Space has also been granted 5 US and foreign patents for core GPEG technology since the company began operations in June of 2015.
The company has also made steady progress in discovering and developing opportunities for the emerging GPEG technology in entertainment, civilian navigation, and defense.
For example, Tim Sweeny, CEO of Epic Games and the visionary technologist behind the Unreal Game Engine, in discussing GPEG technology recently said:
“There is a lot of value to be able to start playing a game without a massive download. This is very interesting solution that can greatly increase playability. This solves a difficult problem…and now is the time to be doing something like this…The world is too big to download!”
July 18, 2017
In the civilian navigation space, David Hansell, a former Air Force pilot and FAA official, and now head of Aviation Policy at Facebook, said:
“If the FAA had focused on the Primal Space approach three years ago, the unmanned traffic management system (UTM) for low altitude UAVs would be farther along”.
August 4, 2017
We continue to deepen our engagement with Congressional leaders, the FAA, and NASA toward an Unmanned Traffic Management (UTM) system which would open the low altitude airspace to commercial and first-responder drone operations in a safe, secure, and controlled way.
We are working the Naval Research Labs and Joint Special Operations Command toward a project demonstrating how GPEG.MIL could enable important new capabilities for autonomous tactical systems. Following a briefing that General (R) Ted Nicholas and I gave at the Pentagon last year, Lt. General John Shanahan, Director for Defense Intelligence Office of the Undersecretary of Defense said,
Thanks to you and Barry for the very interesting briefing on a highly innovative concept. As we talked about, we'll reach out to a few other people who should have an interest in the subject matter.
My compliments to Dr Jenkins for his dedication to improving our military operations.
June 27, 2016
What is our time line for a product deliverable?
Having met our milestones for the seed stage of the company, Primal Space is positioned to complete GPEG software development and to demonstrable product in the next 24 months. This is in line with our initial estimate of 4 years to complete GPEG to a working product.
What is our plan for the Series A Equity Round?
We currently plan to raise $5M in a Series A Equity Financing. This round is sized to provide enough capital to complete the GPEG software to a working product in 24 months. This follows a $3M Series Seed Round in July of 2015, and is in line with our initial estimate of a total of $8M to complete the GPEG software.
Indications are that it may be possible to raise a significantly larger, higher valuation, round from venture investors. However, such a deal would likely require some months to close.
Consequently, we plan to structure the current Series A as a smaller round with a more modest pre-money valuation of $18M. The smaller Series A round at this valuation will allow Series A investors to purchase shares at a lower share price.
Series A shares will of course be preferred shares with the same protective provisions as the Series Seed.