Colorado Springs Tech Startup Secures $12M in Venture Funding
SkyWatch Technologies, a Colorado Springs-based cybersecurity startup specializing in satellite communications protection, announced Tuesday it has secured $12 million in Series A funding led by Silicon Valley venture capital firm Horizon Partners with participation from several aerospace industry investors. The funding round represents the largest venture capital investment in a Colorado Springs technology company this year and signals growing recognition of the city's emerging role as a hub for space and cybersecurity innovation. SkyWatch plans to use the capital to expand its engineering team, accelerate product development, and establish sales operations to serve commercial satellite operators and government agencies.
Founded in 2023 by former Air Force Space Command officers Dr. Michelle Torres and Captain James Wilson, SkyWatch addresses the critical and growing threat of cyberattacks targeting satellite systems that support communications, GPS navigation, weather forecasting, and national security operations. The company's proprietary technology employs artificial intelligence and machine learning to detect anomalous patterns indicating potential cyber intrusions, then automatically implements protective measures to maintain satellite operations. With space-based infrastructure increasingly vulnerable to sophisticated attacks from hostile nations and cybercriminal organizations, SkyWatch's solutions address urgent needs for both commercial and military satellite operators.
The successful funding round reflects Colorado Springs' strategic advantages as a space industry center, anchored by Peterson Space Force Base, U.S. Space Command, and over 70 space-related companies employing thousands of skilled professionals. The city's proximity to military space operations provides unique opportunities for startups to develop solutions addressing real-world challenges while recruiting top talent from transitioning military personnel with specialized expertise. Colorado Springs Economic Development Corporation President Rachel Martinez notes that venture capital interest in local startups has increased dramatically, with total investments in Pikes Peak region companies reaching $87 million in 2025, more than triple the previous year's total.
SkyWatch currently employs 28 people and plans to hire an additional 40 over the next 18 months, creating high-paying jobs in software engineering, data science, sales, and operations. The company operates from the Colorado Springs Technology Incubator, a facility supporting early-stage companies with affordable office space, mentorship programs, and connections to funding sources. CEO Dr. Torres emphasized that building the company in Colorado Springs rather than relocating to traditional tech hubs was deliberate, citing quality of life, cost advantages, and access to industry expertise concentrated in the region. The success of SkyWatch and similar startups positions Colorado Springs to compete with established technology centers while diversifying the local economy beyond its traditional military and tourism foundations.