Japanese Startup Interstellar Technologies Raises ¥3.1 Billion for Rocket & Satellite Development

Interstellar Technologies, a Japanese aerospace startup, has successfully raised 3.1 billion yen (approximately $21 million) to further its rocket and communications satellite development projects. The Series E investment round was announced at the SmallSat Conference in Utah, attracting significant attention from major investors.

Among the prominent investors contributing to this round are SBI Group, Japanese mobile phone network operator NTT Docomo, and Resona Bank. This influx of funds is expected to bolster Interstellar Technologies' ambitious plans to expand its footprint in the satellite communications sector.

Expansion into Satellite Communications

Interstellar Technologies, originally known for developing the Zero rocket, is now venturing into satellite communications.

The company's latest initiative, Satellite Communications 3.0, aims to deliver high-speed, high-capacity communications. The company's progress and strategic direction emphasize the importance of both government contracts and private investment in facilitating their growth.

Emulating SpaceX's Vertical Integration Model

Interstellar Technologies is taking a page from SpaceX's playbook by adopting a vertical integration model.

This approach involves developing and launching their own rockets while simultaneously deploying their communications satellites. Similar to how SpaceX uses its Falcon rockets to launch the Starlink satellite constellation, Interstellar aims to achieve synergy between its rocket technology and satellite communications capabilities.

Collaboration with Japanese Universities

In June, Japan's Ministry of Internal Affairs and Communications selected Interstellar Technologies to collaborate with Japanese universities on core wireless communications technologies.

This collaboration focuses on formation flying, a cutting-edge technique where multiple miniature satellites work in unison to function as a large-scale antenna. This innovation is expected to enhance direct-to-device communications, providing a significant leap in satellite communications technology.

Enhancing Japan's Emergency Communications

A key objective for Japan is to establish its own emergency communications constellation.

Currently, Japan relies on SpaceX's Starlink for emergency communications in the aftermath of natural disasters. Japan sees having an independent system as important, as it would provide Japan with greater control and reliability during critical situations.

Government Support

Interstellar Technologies has also secured substantial government support. In September, Japan's Ministry of Education, Culture, Sports, Science and Technology awarded the company a research grant with a maximum value of 2 billion yen.

This grant is designated for the continued development of Interstellar's small, two-stage Zero rocket, which has been a cornerstone of the company's technological advancements.

With the successful Series E funding round, Interstellar Technologies is well-positioned to make significant strides in both rocket and satellite communications development. The backing from prominent investors and strong government support underscores the potential and strategic importance of Interstellar's projects.

As the company moves forward, it aims to play a pivotal role in advancing Japan's aerospace capabilities and ensuring robust, independent communications infrastructure for the nation.