Japanese space startup Letara has raised ¥2.6 billion ($16 million) as it expands beyond propulsion systems for small satellites into larger rocket systems for space, defense and security markets.
The Sapporo-based company is developing hybrid rocket propulsion technology and plans to use the new funding to move from space demonstrations toward commercial applications, co-CEO Shota Hirai told TechCrunch.
The round was co-led by Headline Asia, JIC Venture Growth Investment and Incubate Fund. Strategic investors including energy company NES Corporation, Toyota Group supplier Toyoda Gosei and Frontier Innovations, an investment fund backed by the Japan Aerospace Exploration Agency, also participated.
“With this round, we will go beyond demonstrating that thruster in space,” Hirai said. “We plan to explore a much wider set of use cases across both the space domain and the defense and security domain.”
Letara’s propulsion system uses a hybrid design that keeps solid fuel separate from the liquid oxidizer required for combustion. The company uses relatively inexpensive materials such as plastic and rubber as fuel and has developed a manufacturing process to mix, shape and compress them so they burn consistently.
The company is targeting three longstanding challenges with hybrid propulsion: generating enough thrust, maintaining consistent performance and controlling combustion.
Hybrid rockets can offer some of the simplicity and safety of solid-fuel systems while retaining some of the control advantages of liquid-fueled rockets. But the technology has struggled to gain widespread adoption because of performance and combustion challenges.
Letara says its approach could make hybrid propulsion more practical for a wider range of applications.
The timing is favorable as Japan looks to build a stronger domestic space industry. The government has been increasing investment in the sector while easing restrictions on defense exports, creating opportunities for Japanese startups developing aerospace and security technologies.
Letara is also entering a competitive market. Companies including Japan’s Interstellar Technologies, South Korea’s InnoSpace, China’s Galactic Energy, Singapore’s Equatorial Space, Germany’s HyImpulse and Australia’s Gilmour Space are pursuing hybrid rocket technology or related propulsion systems.
Letara’s technology originated at Hokkaido University, where Hirai and co-CEO Landon Thomas Kamps were researching rocket propulsion. The pair founded Letara in 2020, initially focusing on propulsion systems for small satellites.
The company has since demonstrated its technology in space and is now looking to build larger systems.
The new funding will support that expansion, with Letara targeting customers beyond commercial satellite operators and into defense and security.
For the startup, the next challenge is turning years of university research and in-space demonstrations into a commercial propulsion business — and proving that its hybrid technology can scale from small satellite thrusters to much larger rocket systems.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
