Quebec-based Reaction Dynamics (RDX), a Canadian launch and logistics startup made its triumphant debut this weekend on TikTok-hosted Meet the Drapers. The company was represented by RDX’s Director of Business Development, Jesse Mikelberg, who provided a solid and convincing pitch against tough competition.
Reaction Dynamics is focused on developing propulsion systems and spacecraft that take advantage of so-called hybrid engines–propulsion systems that use a combination of a liquid oxidizer and solid fuel. Hybrid engines have been around for decades, but technical limitations have limited their use compared to either solid-propellant rockets (like a Space Shuttle booster) or liquid-fueled rockets like SpaceX’s Falcon-9. While some other companies are researching these hybrids, they aren’t yet being used for real-world propulsion.
RDX believes that they’ve overcome these issues through clever engineering of their solid fuel pellets, and claim that their fuel is non-toxic, safe, environmentally friendly, and easily stored over long periods. As the fuel is easily stored, entire rockets (barring the liquid oxygen) can be stored for long periods as well, creating opportunities for both commercial and national security customers.
Their main focuses are the Aurora series of rockets, including the Aurora-1 suborbital rocket and the upcoming Aurora-8 orbital launcher, as well as the new “Micro OTV” orbital transfer vehicle.
They’re looking to demonstrate their viability as both a terrestrial launch provider–with a suborbital launch coming this summer in Australia–and as an in-space transportation provider.
The Drapers’ million-dollar international contest
Mikelberg appeared to make his pitch on behalf of RDX on February 21st, on the seventh episode of the seventh season of Meet the Drapers. Hosted by Silicon Valley venture capitalist Tim Draper, Meet the Drapers has dubbed itself “the largest global pitch competition”, where venture capitalists travel around the world in order to hear pitches from entrepreneurs across a wide variety of different industries.
Mikelberg appeared as part of their New York program, which featured pitches from a variety of different industries: health care, crypto, AI and space launch. The competition works like a tournament, where the winning pitch from each show moves on to the semi-final and then final rounds, with a few fan-voted companies also advancing to the finale. The winning company receives $1 million USD, with second place getting $500k USD and the third place $250k USD.
For most of these companies, however, the public exposure may well be the most valuable aspect of the competition. As Mikelberg noted during his speedy pitch, RDX already has over 10 million in private investment and 10 million in governmental support. Instead, it’s the visibility of the company and its technology–as well as its endorsement by investors like Tim Draper–that may be key to the company’s next raise. Mikelberg said “just being on the show was a win, and [we’re] trying to make the most of the opportunity.”
Personal stories and a “smooth” pitch
The RDX segment of the episode took on a personal tone, with Mikelberg talking about how he’d been inspired by his grandfather’s voyage to Canada as a child refugee after WW2. Mikelberg also spoke on how working with RDX has been hugely beneficial to his mental health, and revealed that he’s currently doing graduate studies in negotiations (with a focus on space) at NYC’s Columbia University.
Mikelberg also talked about how his grandfather’s work building communities on Earth inspired his interest in infrastructure-building technologies for space, saying that “we are delivering critical space assets and satellite infrastructure for governments, agencies and commercial operators alike.” He even incorporated it into his pitch, saying that his grandfather’s focus on “leveraging technology to build resilient communities” was part of what inspired his work with RDX.
In his pitch, Mikelberg gave more information about the fuel–describing its layers of differently-burning solid fuel as “very similar to an onion”–and on their patents on the engines and rockets that leverage that fuel. He also revealed that “our first customer is the US Department of Defense”, and that “we’re actually on track to do five to ten million in revenue at the end of this year”, which will “turn into a quarter of a billion dollar contract in two years time.”
The judges were noticeably impressed with his presentation skills, with Draper exclaiming “you are smooth!” Another judge, Polly Draper, later enthused that “I think he’s fantastic in every single way”, particularly in how he explained the science and engineering behind the company’s technology prior to going on air.
They did raise the question, however, of why SpaceX never invested in the technology despite its size. Mikelberg explaining that SpaceX’s heavy investment in liquid-fueled rockets would make it difficult-to-unfeasible for the company to make an investment in hybrid propulsion worthwhile. Understandable, and would also form a potential foundation for RDX’s competitive advantage.
The only potential roadblock was a simple question: “have you launched the rockets yet”? Mikelberg dissembled somewhat, saying that “we’ve tested the engine over 300 times”. He told the Drapers that they have an upcoming space-based test of the engine (and possibly the Micro OTV) using a Gravitics station launched by a SpaceX Falcon-9, though he didn’t mention the upcoming suborbital test in Australia or next year’s scheduled orbital test at Spaceport Nova Scotia.
But the mood did change somewhat after that exchange, implying that the lack of a successful terrestrial launch might provide a reason for the judges to give RDX the thumbs-down. Many seemingly-promising launch companies with great technology have failed to actually get a rocket into orbit, and have since shut down. That is a real risk.
RDX moves on to next round
That issue turned out to not be a deal-breaker, however. After several other presentations–one by a crypto-based company aimed at cross-national workers and another by a health AI startup–the judges came together and Tim Draper made his decision using his signature “crystal ball”.
Launch doubts or no, Mikelberg’s “smooth” presentation convinced the Drapers, and Reaction Dynamics was the winner of the New York City competition. They’ll be moving on to a semi-final competition in later March, or possibly early April, to face off against winners from previous rounds. If they make it to the finals, it will be in mid-April, a few months before their Australian suborbital test.
Officially, a million dollars will be on the line. Unofficially, considering the prominence of the competition and the importance of capital-raising for space launch companies, the notoriety of winning the competition may end up raising significantly more.