Interstellar Technologies (“Interstellar”), a leading space infrastructure company, announces the completion of 129.7 million USD1 in Series F funding through a third-party allotment of new shares. The round was completed with the investments from SBI Group, Nomura Real Estate Development, B Dash Venture, SMBC Edge, and existing shareholders, in addition to the previously announced investors.
Interstellar’s Series F round represents one of the largest fundraising to date by a privately held space startup in Japan2, bringing Interstellar’s cumulative funding to 287.7 million USD. The round, led by Woven by Toyota, raised 14.8 billion JPY (95.5 million USD) through a third-party allotment of preferred shares in an up-round.
In addition, the company secured 5.3 billion JPY (34.2 million USD) in debt financing from financial institutions, including 1.8 billion JPY (11.6 million USD) in loan facilities with stock acquisition rights provided by the Japan Finance Corporation. Alongside the fundraising, secondary transactions with existing shareholders were also conducted to optimize the company’s capital structure. Nomura Securities provided advisory support in this series, including the introduction of several potential investors, some of which resulted in fundraising.
As a leading private space transportation company in Japan, Interstellar is working to realize the country’s first vertically integrated business combining launch vehicle services and satellite communications. In its launch vehicle business, the development of orbital launch vehicle ZERO has been selected for Phase 3 of the Ministry of Education, Culture, Sports, Science and Technology’s (MEXT) Small Business Innovation Research (SBIR) program, with Interstellar being chosen as one of only three companies to successfully pass the latest stage-gate review.
For ZERO’s first launch, seven domestic and international satellites have already been confirmed as customers, with launch contracts signed with a total of eight companies, organizations, and universities, including one company conducting a demonstration of a satellite separation system. In parallel, Interstellar has established a manufacturing-focused business alliance with Toyota Motor Corporation and Woven by Toyota is advancing efforts to establish a robust production system, an area that has traditionally been challenging to develop within Japan’s relatively small space industry. Through these initiatives, Interstellar aims to deliver highly competitive space transportation services from Japan, capable of supporting high-frequency launches for customers both domestically and internationally.
On the satellite business side, Interstellar is focusing on communications satellites, which typically require frequent launches and represent an area where a vertically integrated company can maximize its competitive advantage by utilizing its own launch vehicle. Research and development for this project is being advanced through commissioned projects from the Ministry of Internal Affairs and Communications, as well as initiatives such as the Space Strategy Fund implemented by the Japan Aerospace Exploration Agency (JAXA).
The funds raised in this round will be used primarily for the development of ZERO’s first launch vehicle, strengthening the manufacturing system toward future commercialization, and the research and development of satellites, thereby driving further expansion of both businesses.
Comment from Interstellar
“We are pleased to announce the successful completion of the Series F fundraising round, made possible by the support of our investors and financial institutions that are leaders in their respective fields. Long-time supporters such as the SBI Group have continued its commitment with follow-on investments for the third consecutive round. While new investors such as B Dash Ventures, a leading organization in the startup ecosystem, has selected Interstellar as its first investment in the space sector. We are also grateful to SMBC Edge for providing hands-on support spanning capital, business development, and human capital. In addition, we are deeply encouraged by the strong backing received across the entire Series F, including from our lead investor, Woven by Toyota. The recognition of Interstellar Technologies’ company-wide achievements, from technology development to business execution and corporate strategy, as a great source of motivation. Building on this support, we will further advance our vertically integrated launch vehicle and communications satellite businesses in Japan and globally.” – Takahiro Inagawa, Director of the Board, Chief Executive Officer, Interstellar Technologies.
Source: Interstellar Technologies
