Isar Aerospace has raised $165 million in a Series C funding round to scale up production of its Spectrum rocket.

The company raised the funds from a group of European investors, including 7-Industries Holding, Bayern Kapital, Earlybird Venture Capital, HV Capital, Lakestar, Lombard Odier Investment Managers, Porsche Automobil Holding SE, UVC Partners, and Vsquared Ventures. HV Capital and Porsche SE will take seats on Isar's board as part of the funding round.

The Munich-based company says the funding will go towards final development of its Spectrum rocket, capable of placing up to 1,000 kilograms into low Earth orbit, and will support efforts to scale up production of the rocket.

Spectrum is in the final phases of development, with a first launch scheduled for the second half of this year from a launch site in Andøya, Norway.

Isar Aerospace has signed up several customers, with the first two flights allocated to payloads from the German space agency DLR and European Space Agency through an initiative called "Boost!" to support development of commercial small launch vehicles. Isar has also announced several commercial customers, including a Jan. 25 agreement with American launch aggregator Spaceflight Inc. for one dedicated Spectrum launch and an option for a second.

Isar has planed for up to four launches in 2024, with a capacity in its current factory to produce up to eight rockets a year. The company has plans for a second factory that would ultimately be able to produce up to one rocket a week.

The funding will also support efforts by the company to scale up production of Spectrum, making extensive use of automation and additive manufacturing technologies.

Isar Aerospace has raised more than $330 million to date, with the latest funding round being the first since adding $75 million to its Series B round in July 2021. The company did not disclose the valuation of the company in this round, but David Kownator, chief financial officer of Isar, said in a statement that it was an increase from the previous round.

Isar Aerospace's funding round is the largest so far this year for any space company.