talksatellite
Asia-Pacific
   

Daily news


AMERICAS
EMEA

ASIA-PACIFIC

Interstellar Secures 3.1 Billion Yen in Series E Funding

Backed by SBI GROUP, NTT DOCOMO, Resona Bank, Paving the Way for Japan's First Integrated Rocket and Satellite Startup

 Interstellar Technologies Inc.has successfully raised 3.1 billion yen in its Series E round via third-party share allocation to new investors such as SBI GROUP and NTT DOCOMO, INC., alongside financing from Resona Bank,Ltd.

Interstellar is pursuing Japan’s first vertical integration of the rocket and satellite businesses. In September 2023, the development of the orbital class launch vehicle ZERO was selected for the Ministry of Education, Culture, Sports, Science and Technology’s “SBIR Phase 3” (Small Business Innovation Research). Upon successful completion of two stage-gate evaluations, up to 14 billion yen will be granted by fiscal year 2027, supporting steady progress towards the inaugural launch.

Interstellar's proposed 'Satellite Communication 3.0' enables direct connections with ground terminals such as smartphones, promising high-speed, high-capacity communication comparable to terrestrial networks. With this concept, the satellite department focuses on areas where the strengths of owning a rocket company can be maximized, aiming to enter the satellite communication market led by ventures such as SpaceX's 'Starlink'. Joint research with the National Institute of Information and Communications Technology (NICT) commenced in September 2023 (*3), with NICT also participating as an investor in this round. Additionally, in June 2024, the company was entrusted with the Ministry of Internal Affairs and Communications' "Expanding Wireless Communication Spectrum Research Project" (*4).

As Japan’s first vertically integrated rocket and satellite startup, Interstellar will utilize this newly secured funding to accelerate both its rocket and satellite operations.

Series E Round Investors (unordered, titles omitted)

SBI GROUP, NTT DOCOMO, INC. The Seibu Shinkin Capital,Inc.THE SEIBU SHINKIN BANK, NES Inc., North Pacific Bank, Ltd.Hokkaido Research Institute for the Twenty-first Century Co.,Ltd. National Institute of Information and Communications TechnologyNICT) Resona Bank,Ltd.

Hiroyuki Ono, Deputy General Manager, SBI Investment Co., Ltd., commented: Space transportation is becoming increasingly important as infrastructure supporting the industrial foundation of the vast space market, with competition in the private market intensifying globally. However, domestic operators remain limited. Amid this, Interstellar Technologies Inc. has been recognized as a leading company in Japan with the potential to excel globally, prompting our investment. The SBI Group will continue to provide comprehensive support.

Takaaki Sato, Senior Executive Vice President Representative Member of the Board of Directors, NTT DOCOMO, INC., commented: NTT DOCOMO, in addition to new technologies such as 6G and IOWN, is taking on the challenge of realizing a "Space Integrated Computing Network" using high-capacity communication and computing infrastructure in space.

We believe that Interstellar Technologies’ proposed "Satellite Communication 3.0" is an important and innovative technology that will contribute to the enhancement and efficiency of the networks NTT DOCOMO is working on.

We support the growth of Interstellar Technologies as it aims to develop satellite communication services originating in Japan.

Takahiro Inagawa, Chief Executive Officer, Interstellar Technologies Inc., commented: The Japanese government has explicitly expressed its support for private rockets due to the growing importance of the space industry, and being selected for this support program has significantly accelerated our business. In this context, we are advancing with a vision that aims to positively impact life on Earth through the integration of space transportation and satellite communication technology. We deeply appreciate the strong support from our backers who share our vision and are committed to dedicating our efforts to development and operations to meet their expectations.

Interstellar Technologies Inc.

Interstellar is a dynamic Japanese start-up with a vision of making space accessible to everyone  through low-cost and convenient space transportation services. Headquartered in Taiki, Hokkaido, Interstellar's product development extends across five locations, including branches in Tokyo, Fukushima, and Obihiro, as well as a laboratory at the Muroran Institute of Technology.

Interstellar has achieved three successful spaceflights with suborbital launch vehicle MOMO, making it Japan's first private company to reach space. Currently, Interstellar is developing the orbital class launch vehicle ZERO. Additionally, Interstellar leads Our Stars, a satellite development project, pioneering Japan's vertically integrated rocket-satellite service.