Porsche SE gears up for the ‘space race’; invests in this German rocket tech startup

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Munich-based Isar Aerospace, a space technology company that offers launch solutions for satellite constellations, announced that it has extended its Series B round funding to over $165M (approx €139.15M). According to Isar, the extension round of $75M (€63.2M) was led by HV Capital, holding company Porsche Automobil Holding SE, and banking group Lombard Odier.

Existing investors Earlybird Venture Capital, Lakestar, Vsquared Ventures, Apeiron Investment Group, and UVC Partners also participated in the current round. 

Lutz Meschke, Member of the Executive Board of Porsche SE responsible for investment management, says, “As an investor focusing on mobility and industrial technology, we are convinced that cost-effective and flexible access to space will be a key enabler for innovations in traditional industries as well as for new and disruptive technologies and business models. Therefore, we are excited to back Isar Aerospace on its way to become the leading European small-launcher and to meet the increasing appetite for launch services.”

Capital utilisation

The proceeds from this round will allow Isar Aerospace to further invest in its launch, testing, and manufacturing infrastructure for its largely automated rocket production and commercial operations, as the company aims for its first test flight in 2022. 

Daniel Metzler, CEO of Isar Aerospace, says, “As the most well-funded space startup in the European Union, we are now at the forefront to provide flexible and cost-efficient access to this platform. For us at Isar Aerospace, this funding means even more firepower to invest in our infrastructure and further build on our leading position.”

About Isar Aerospace

Founded in 2018 by Daniel Metzler, Josef Fleischmann, and Markus Brandl, Isar Aerospace develops and builds launch vehicles for transporting small and medium-sized satellites as well as satellite constellations into Earth’s orbit. 

The company’s mission is to build a launchpad with a new kind of rocket that is smaller and less expensive. By doing so, it will make it cheaper, easier, and more flexible for organisations to book satellite launches. These rockets will aim to carry a payload of more than 1,000 kilograms.

Since its inception, the company has grown to more than 180 employees with many years of hands-on rocket know-how as well as experience within other high-tech industries. The company is privately financed by former SpaceX VP Bulent Altan.

‘Spectrum’ launch vehicle in production

In a statement, Isar Aerospace reports being on track for its first test flight in 2022. This year, the company began the production of its first launch vehicle and is about to start its engine tests in Kiruna, Sweden and its launch operations in Andøya, Norway. 

Isar has decided to launch its ‘Spectrum’ rocket from Norway and has signed an agreement with Andøya Space earlier this year to secure exclusive access for a period of up to 20 years to one of its launch pads. 

Isar Aerospace has already announced Airbus Defence and Space as one of the first paying customers and will announce more customer contracts soon. As part of the Commercial Space Transportation Services programme run by the European Space Agency, the space startup has also won the German government as a client.

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Vishal Singh

Vishal Singh is a News Reporter and Social Media Marketing Lead at Silicon Canals. He covers developments in the European startup ecosystem and oversees the publication's social media presence. Before joining Silicon Canals, Vishal gained experience at the Indian digital media outlet Inc42, contributing to its growth with insightful content. Despite being a college dropout, his passion for writing has driven his career in journalism.

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