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Feb 19, 2026
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NewDecoded
3 min read
Image by Hydrosat
Hydrosat announced the closure of a $60 million Series B funding round on January 15, 2026, to accelerate the expansion of its high-resolution thermal satellite constellation. Led by Hartree Partners, Subutai Capital Partners, and Space 4 Earth, the capital will bolster the company's efforts to provide real-time data for water resource management and climate resilience. The round also saw participation from Truffle Capital, signaling a strategic push into the insurance and financial services sectors.
The Washington, DC-based firm operates a specialized fleet of satellites, including the VanZyl-1 and VanZyl-2, which capture more than 10 million square kilometers of imagery every day. Unlike traditional optical satellites that monitor vegetation greenness, Hydrosat measures Land Surface Temperature to detect early signs of plant stress. This thermal infrared data acts as a leading indicator for drought and water scarcity before physical damage is visible to the naked eye.
To transform raw heat data into actionable insights, Hydrosat utilizes advanced AI and machine learning models alongside its IrriWatch software platform. These tools analyze historical and real-time signals to provide precise irrigation prescriptions and crop yield forecasts for agribusinesses and governments. This technology allows users to optimize water productivity, helping farmers increase yields while significantly reducing water waste. With this fresh capital, Hydrosat plans to deepen its presence in regions facing extreme climate pressure, such as Central Asia, the Middle East, and Latin America. The company is also scaling its defense and intelligence applications, as thermal signatures can reveal ground activity during both day and night. Organizations like NOAA and the National Reconnaissance Office already utilize these thermal insights for situational awareness and environmental monitoring. The strategic involvement of Hartree Partners and Truffle Capital highlights the growing economic value of thermal intelligence. CEO Pieter Fossel noted that the funding positions the company to meet surging demand for intelligent solutions to some of society's most complex challenges in national security and natural resources. This funding will support the next phase of constellation development and the evolution of products tailored for the financial services sector.
This investment highlights a maturing Earth Observation market where simply seeing the planet is no longer enough; the industry is shifting toward measuring its specific vital signs. By integrating satellite hardware with specialized fintech through Truffle Capital, Hydrosat is moving beyond basic agriculture into the world of parametric insurance and commodity hedging. This shift suggests that high-frequency thermal data is becoming essential economic infrastructure, allowing markets to price climate risk with unprecedented accuracy as global water volatility increases.