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The Compression Company lands £2.5m in pre-seed funding to run data compression onboard satellites

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The Compression Company
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Michael Stanway; Joe Griffith
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£2.5m
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London, United Kingdom
Feb 12, 2026

The Compression Company, a satellite data compression startup, has raised £2.5 million in a pre-seed round led by Long Journey. It develops software that runs directly onboard satellites to reduce the size of Earth observation data so that more information can be transmitted back to Earth during limited ground-station passes.

Satellites are capturing more Earth observation data than ever, but limited bandwidth means only a fraction makes it back to Earth in time to be useful, resulting in most captured data being delayed, degraded, or discarded. The Compression Company reduces file sizes directly on the satellite without compromising accuracy or usability, allowing operators to transmit more usable data, lower storage and transmission costs, and deliver information faster.

The software applies different levels of compression within each image, heavily compressing lower-value data such as cloud cover while preserving high-value details, such as detected ships in maritime surveillance. As satellites increasingly launch with more onboard compute, the solution can be deployed as software only, without requiring new hardware.

The Compression Company was founded by Michael Stanway and Joe Griffith, who met while studying neurotechnology at Imperial College London. The platform, emerged from Entrepreneurs First, has shipped its first orbital deployment scheduled to go live in Q1 2026, and will use the new funding to expand its engineering team and support further commercial rollouts with satellite operators.

There’s been huge investments in capturing more data from space, but far less attention paid to how that data actually gets back to Earth. Until now, the answer has been to launch more satellites. We’re taking a different approach - using software to compress data in orbit, so operators can bring down more useful information from existing satellites and unlock more value from the data they’re already capturing.
Michael Stanway, Co-founder & CEO
AI compression unlocks a huge opportunity with Earth Observation data. Operators have always had to make trade-offs about what gets sent. When more of the data you collect can actually make it to the ground, those trade-offs change and you can be far more selective about what you throw away, and far more ambitious about the services you build on top.
Joe Griffith, CTO
Space has become a data industry, but the ability to move and work with that data has lagged badly behind its generation. The Compression Company is tackling one of the most fundamental constraints in the ecosystem with a software-first approach that’s both technically ambitious and immediately useful to operators. Michael and Joe pair deep, original thinking with real builder instincts, and we’re excited to back them as they create a new layer of infrastructure for the space data stack.
Lee Jacobs, Founding Partner at Long Journey
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