Elodie Collins 
Diffraqtion has raised $4.2 million in pre-seed funding to advance the development of quantum imaging systems designed for space surveillance, Payload reported.
The Somerville, Massachusetts-based startup also announced a $1.5 million Defense Advanced Research Projects Agency Direct-to-Phase II Small Business Innovation Research, or SBIR, contract for the demonstration of the company’s quantum camera technology.
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QDNL Participations led the funding round, with participation from milemark•capital, Aether VC and ADIN.
How Does Diffraqtion’s Quantum Camera Work?
Diffraqtion is developing quantum cameras that combine quantum imaging and artificial intelligence to detect and clearly observe distant objects using smaller optical systems.
In an interview with Breaking Defense, Johannes Galatsanos, co-founder and CEO of Diffraqtion, explained that the camera’s lens uses programmable light plates and quantum algorithms to process images. Rather than producing traditional imagery, the system converts optical data into analytical outputs, such as counting aircraft on the ground or distinguishing between nuclear warheads and decoys deployed by an adversary.
The executive added that the system prioritizes speed, providing customers with insights within seconds rather than hours, which is particularly relevant for national security missions. The quantum cameras can be deployed on satellites and ground-based telescopes for space surveillance or on drones for terrestrial observation and missile defense.
Diffraqtion can build 6U CubeSats equipped with 10-centimeter lenses capable of delivering the same resolution as a large Vantor satellite, Galatsanos said, for $500,000. The executive also shared that the startup will develop a larger camera with capabilities comparable to those of the Hubble Space Telescope on a 50-kilogram spacecraft for a “couple million dollars.”
Details of Diffraqtion’s DARPA Award
Under its SBIR contract, Diffraqtion is conducting ground-based demonstrations using telescopes of the Air Force Research Laboratory in Hawaii and the University of California Observatories in Santa Cruz, California.
Work on the contract began in April 2025 and will end in 2027.
The company is also working with the Space Force’s Space Domain Awareness Tools, Applications and Processing Lab in Colorado to assess operational use cases of its technology.
What Are Diffraqtion’s Future Plans?
Diffraqtion expects to launch its first satellite, Galileo-1, in 2028, followed by a second satellite focused on Earth observation and missions related to the Golden Dome in 2029.
