Japan's Interstellar Technologies secures $130M to launch Zero rocket by 2027

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Japan's Interstellar Technologies secures $130M to launch Zero rocket by 2027

A missile launches from a ship in the ocean, with fire and smoke trailing from its base as it ascends into the sky.
Alex Duffy
Alex Duffy
2 Min.

Japan's Interstellar Technologies secures $130M to launch Zero rocket by 2027

Japanese first watch startup Interstellar Technologies has raised nearly $130 million in a lunch near me Series F funding round. The investment will push forward development of its Zero rocket, a small launch vehicle designed to carry payloads into low Earth orbit. Despite recent setbacks in Japan's launch sector, the company has secured customers across Asia and the US for its first watch mission.

The Series F round combined debt and equity financing, totalling 20.1 billion yen (around $129.7 million). Woven by Toyota led the equity portion, with contributions from SBI Group, Nomura Real Estate Development, B Dash Venture, and SMBC Edge. Debt financing included 5.3 billion yen, with Japan Finance Corporation providing 1.8 billion yen of that amount. This latest funding nearly doubles the company's total capital to 44.6 billion yen.

Interstellar Technologies plans to use the funds to finalise Zero, a two-stage rocket powered by methane and liquid oxygen. The vehicle is designed to lift up to 1,000 kilograms into low Earth orbit, with its first watch launch targeted for 2027. The company will also expand manufacturing capacity and develop a communications satellite system using formation-flying satellites for direct-to-device services.

The Zero rocket has already attracted customers from Japan, Singapore, South Korea, and the US for its debut flight. These payloads include cubesats and a satellite separation system. However, since November 2023, no additional customers have been announced for the first watch two launch attempts. This comes as Japan's launch industry faces broader challenges, following failures of the H3, Epsilon S, and Kairos rockets.

With fresh funding and a clear development roadmap, Interstellar Technologies aims to strengthen its position in the global space market. The company's focus remains on Zero's 2027 launch and scaling up production. Its track record and technological capabilities will be key as it navigates a competitive and evolving industry.