The company states that this latest round brings its cumulative funding to 44.6 billion JPY (about 287.7 million USD), making it one of the largest fundraising achievements by a non-listed space startup in Japan, based on Startup DB financial rankings.

The Series F round is led by Woven by Toyota and includes new and existing investors such as SBI Group, Nomura Real Estate Development, B Dash Ventures, SMBC Edge, Space Frontier Fund II operated by SPARX Asset Management, Sumitomo Mitsui Banking Corporation, Japanet Holdings, and other existing shareholders.

Of the total, 14.8 billion JPY (approximately 95.5 million USD) was raised via a third-party allotment of preferred shares in an up-round, while an additional 5.3 billion JPY (around 34.2 million USD) was raised in debt financing from financial institutions.

The debt portion includes 1.8 billion JPY (about 11.6 million USD) in loan facilities with stock acquisition rights provided by Japan Finance Corporation, and the overall transaction also involves secondary share transfers by existing shareholders to optimize the company's capital structure, with Nomura Securities providing advisory support and investor introductions.

Interstellar positions itself as a leading private space transportation company in Japan and is working to build what it describes as the country's first vertically integrated business that combines launch vehicle services with satellite communications.

In its launch activities, the company's orbital launch vehicle ZERO has been selected for Phase 3 of the Ministry of Education, Culture, Sports, Science and Technology's Small Business Innovation Research program, with Interstellar named as one of only three companies to pass the latest stage-gate review.

For ZERO's inaugural orbital mission, seven domestic and international satellites have already been confirmed as payloads, and the company reports that it has signed launch contracts with eight different entities, including a customer planning to demonstrate a satellite separation system.

To support future high-cadence launch operations, Interstellar has entered a manufacturing-focused business alliance with Toyota Motor Corporation, and Woven by Toyota is collaborating with the company to establish a scalable and robust production system in Japan's relatively small commercial space manufacturing base.

Through this integration of development, manufacturing, and launch services, Interstellar aims to provide competitive space transportation from Japan capable of supporting frequent launches for both domestic and international customers.

On the satellite side, Interstellar is concentrating on communications satellites, a segment that typically requires recurrent launches and where vertical integration with an in-house launch vehicle is expected to yield operational and cost advantages.

Research and development for Interstellar's satellite projects is progressing under commissioned work from the Ministry of Internal Affairs and Communications and through initiatives linked to the Japan Aerospace Exploration Agency's Space Strategy Fund.

The company plans to allocate the proceeds from the Series F round primarily to the development of the first ZERO orbital launch vehicle, the strengthening of its manufacturing systems ahead of commercialization, and the advancement of satellite R and D activities.

Hiroyuki Ono, General Manager at SBI Investment, notes that space transportation is "a critical infrastructure underpinning the industrial foundation of the rapidly expanding global space market" and characterizes Interstellar as a leading domestic player with strong technological capabilities and execution, adding that the SBI Group intends to continue fully supporting the firm's growth and organizational development.

B Dash Ventures CEO Hiroyuki Watanabe describes the rocket business as a core element of the global space industry and states that Interstellar has "from an early stage, taken a global perspective and steadily built a strong business foundation" by combining technology, commercialization, and strategic partnerships, adding that the firm looks forward to supporting Interstellar as it scales and seeks international success.

A spokesperson for SMBC Edge comments that Interstellar, guided by its mission of "Empowering Society Through Space Infrastructure," is a core startup in Japan's space sector and says the investor intends to provide integrated support in capital, business development, and talent to help build a new space transportation industry.

Interstellar CEO Takahiro Inagawa says the completion of the Series F round reflects strong support from investors and financial institutions that lead in their respective fields, citing long-time backers such as SBI Group, new participants like B Dash Ventures entering the space sector for the first time, and hands-on support from SMBC Edge in capital, business, and human resources.

Inagawa adds that the recognition of the company's achievements, spanning technology development, business execution, and corporate strategy, serves as a major motivation and that Interstellar will use this backing to accelerate the development of its vertically integrated launch vehicle and communications satellite businesses in Japan and worldwide.

Related Links
Interstellar Technologies Inc.
Rocket Science News at Space-Travel.Com