Series F Round Nets $129.7 Million for Interstellar Technologies
Among the Largest Rounds to Date by a Privately Held Space Startup in Japan
A ¥20.1 billion ($129.7 million) in Series F funding round has been closed by Interstellar Technologies 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.
“Space transportation represents a critical infrastructure underpinning the industrial foundation of the rapidly expanding global space market.”
Hiroyuki Ono, SBI Investment
Interstellar’s Series F round represents one of the largest fundraising efforts to date by a privately held space startup in Japan, bringing Interstellar’s cumulative funding to ¥44.6 billion ($287.7 million). The round, led by Woven by Toyota, raised ¥14.8 billion ($95.5 million) through a third-party allotment of preferred shares in an up-round.
In addition, the company secured ¥5.3 billion ($34.2 million) in debt financing from financial institutions, including ¥1.8 billion ($11.6 million) 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.
“Following our participation in the previous round, we have made an additional investment in the current round. Space transportation represents a critical infrastructure underpinning the industrial foundation of the rapidly expanding global space market; however, the number of operators in Japan remains limited,” said Hiroyuki Ono, General Manager, SBI Investment (SBI Group). “In this context, Interstellar Technologies has established itself as a leading domestic player, distinguished by its robust technological capabilities and strong execution track record, and we expect it to further enhance its presence in the global market going forward. Together with newly participating investors who provide strong strategic support, the SBI Group will continue to fully support Interstellar’s business growth and the ongoing strengthening of its organizational structure.”
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.
“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,” said Takahiro Inagawa, Director of the Board, Chief Executive Officer, Interstellar Technologies. “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.”
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.