Orbex Secures $24
Million Funding Round for UK Space Launch
10 December 2020
Orbex has secured $24
million in a funding round led by BGF, the UK's
most active investment company, and Octopus
Ventures, one of the largest VCs in Europe.
BGF and Octopus Ventures
have joined existing investors High-Tech
Gründerfonds, Heartcore Capital and Elecnor S.A.
- parent company of the multi-national space
firm Deimos Space - in a new funding round for
the orbital launch services company. The new
investments secure the roadmap to the first
launch from the Space Hub Sutherland spaceport
in Scotland.
“Orbex is an impressive UK
company which is developing a strongly
differentiated and innovative launch solution
for the rapidly-growing small satellite market.
In Europe, they are a recognized leader with an
experienced team, substantial institutional
support, a growing customer list and patented
technology. The private space sector remains a
key future industry for both Scottish and UK
governments and we’re very excited to be backing
one of the most compelling examples of this
evolving sector,” said Keith Barclay, Investor
at BGF.
Conceived and developed as
an environmentally sustainable launch system,
the Orbex Prime rocket uniquely uses
bio-propane, a renewable biofuel that cuts CO2
emissions by 90% compared to traditional
kerosene-based rocket fuels. Designed to be
recoverable and re-usable, Orbex Prime is
intended to leave no debris in the ocean or in
orbit around the Earth. The company is
constructing the rocket vehicle at factories in
Forres, near Inverness in Scotland, and
Copenhagen in Denmark.
“Orbex is creating a highly
innovative launch solution that is rapidly
gaining market traction with very serious
customers. We’re delighted to be part of the
future of the company and are very excited about
what they’re looking to achieve, including the
first ever vertical launches from UK soil,” said
Simon King, Partner at Octopus Ventures.
Orbex has already confirmed
six commercial satellite launch contracts, with
the first launches expected in 2022. The
company’s preferred launch site will be the
Sutherland spaceport on the northernmost coast
of Scotland, which was granted planning
permission in mid-August 2020.
“This financing round is an
important step forward for Orbex. It helps us
maintain our rapid pace and allows us to move
forward with certainty towards our first launch
from the Sutherland spaceport. With BGF and
Octopus Ventures we have found significant
strategic partners who recognise our vision, and
who have the capability to support our
development through both the early flights and
into subsequent growth and production,“ said
Chris Larmour, Orbex CEO.
“We want the UK to be
Europe’s leading destination for launching small
satellites – driving economic growth in
communities up and down the country,” said UK
Science Minister Amanda Solloway. “Companies
like Orbex are playing a vital role in the UK’s
thriving commercial spaceflight market and
today’s funding reflects the confidence that
investors have in Orbex, helping to bring small
satellite launch from Sutherland one step
closer.”
The announcement by Orbex
will bring significant new investment in high
technology employment opportunities and
large-scale production facilities in the
Highlands region of Scotland, close to the
launch site at the A’Mhoine peninsula in
Sutherland. The A’Mhoine site was granted
planning permission in August 2020 and is
expected to begin construction in 2021.
“This is great for Forres,
Moray and the Highlands and marks further strong
progress for Orbex,” said Scottish Minister for
Trade, Investment and Innovation Ivan McKee.
“Our aim is for Scotland to secure a £4 billion
slice of the global space market by 2030 - an
ambitious but realistic target. The Scottish
space sector has a unique selling point - using
space as a force for good - designing lighter,
more efficient rockets, developing clean burning
and renewable fuel and using satellite data to
combat climate change and promote scientific
discovery. This investment will help Orbex take
a significant step towards their goal of placing
small satellites into orbit from Space Hub
Sutherland, and help build an innovative new
industry for Scotland’s economy.”
The funding round is
completed by a €2.5 million grant from the
European Horizon 2020 SME Instrument programme –
the first for a UK space-sector company – to
support the development of patented coaxial
tanking technology. Orbex previously won £5.5
million in grant funding from the UK Space
Agency’s Launch UK programme in 2018.