Letara has raised ¥2.6 billion, about $16 million, to expand beyond small-satellite thrusters into larger hybrid rocket systems for space, defense, and security applications. The Sapporo-based startup plans to use the funding to move from demonstrations toward commercial production and broader deployment.
The round was co-led by Headline Asia, JIC Venture Growth Investment, and Incubate Fund. Strategic investors included NES Corporation, Toyoda Gosei, and Frontier Innovations, a JAXA-backed investment fund.
Letara Is Moving Beyond Satellite Thrusters
Letara was spun out of Hokkaido University in 2020 after co-CEOs Landon Thomas Kamps and Shota Hirai researched rocket propulsion there. The company initially focused on hybrid thrusters for small satellites but is now targeting larger systems for launch vehicles and government customers.
Hirai told TechCrunch that the company plans to develop hybrid rocket systems for a wider range of space and defense uses. Letara says it has already secured orders from rocket companies, satellite operators, and the Japanese government, although it did not disclose contract values.
Japan’s increased spending on aerospace and its easing of defense export restrictions are creating more opportunities for domestic startups. Letara is targeting satellite manufacturers, launch providers, and government customers in Japan and overseas.
The Propulsion System Uses Solid Fuel and Liquid Oxidizer
Letara’s hybrid design keeps solid fuel separate from the liquid oxidizer used for combustion. The company uses relatively inexpensive materials such as plastic and rubber as fuel and has developed its own process for mixing, shaping, and compressing them.
The goal is to improve thrust, combustion control, and performance compared with traditional hybrid systems that often use paraffin wax. Hirai said those factors have historically limited wider adoption of hybrid propulsion.
Letara says larger spacecraft could also benefit from higher-thrust systems when moving from low Earth orbit to geostationary orbit. The company also sees growing demand from launch providers.
The global hybrid rocket propulsion market is projected to reach $2.6 billion by 2032, up from $848 million in 2024, representing a compound annual growth rate of about 15%.
An In-Orbit Firing Test Is the Next Major Milestone
Letara’s next major target is an in-orbit firing test with an overseas partner. The company sees that demonstration as an important step toward commercial deployment.
It will also need to establish repeatable manufacturing processes, quality controls, and a reliable supply chain for fuel and tanks before it can produce systems at larger scale.
The company faces competition from Interstellar Technologies, Galactic Energy, InnoSpace, Equatorial Space, HyImpulse, Gilmour Space, and other propulsion companies.
Letara also said recycled plastic could potentially be used as fuel in the future, although additional testing and development would be required.
Featured image credits: Startup LOG
For more stories like it, click the +Follow button at the top of this page to follow us.