HELSINKI — Chinese commercial launch company iSpace has secured new funding as it prepares for a first launch of its Hyperbola-3 reusable rocket.
The company, full name Beijing Interstellar Glory Space Technology Ltd., announced Series D financing worth “several hundred million yuan” (100 million yuan = $13.8 million) March 11. The round was led by the Sichuan Tianfu Xinyun Digital Economy Development Fund Co., Ltd., a provincial industrial investment fund managed by Sichuan Development (Holding) Co., Ltd.
The funds will be mainly used for the research and development of the Hyperbola-3 methane-liquid oxygen rocket and the construction of a test bench for the Focus series engine and an engine production line in Mianyang, Sichuan province. A 35,000-square-meter factory is to be completed in 2026, enabling an annual production capacity of 100 engines. The test facilities will also serve space enterprises within Sichuan and across China, further strengthening Sichuan’s commercial space industry, according to the statement.
The company says it has three Hyperbola-3 rockets in various stages of production. It is targeting a first orbital launch with an attempted “sea recovery” of the first stage in December. If successful, it aims to conduct a reuse test flight in June 2026.
While specifics were not released, earlier statements put the two-stage Hyperbola-3 at 69 meters long with a payload capacity of 8,500 kilograms to low Earth orbit in reusable mode and 13,400 kg to LEO in expendable mode.
Provincial participation
The new round follows C and C+ financing announced in September 2024. That round also went towards development of the Hyperbola-3 and, with strong participation from Sichuan Industrial Revitalization Fund Investment Group Co., Ltd., involved development of an assembly plant in Shifang city in Sichuan province.
The development follows a trend of local and provincial governments backing commercial space companies. Another launch firm, Deep Blue Aerospace, secured its own funding earlier this month worth close to $69 million in a round led by a local, state-owned investment vehicle.
Local governments across China are seeking to attract space companies as drivers of growth and innovation, with the central government designating commercial space as a key sector to be promoted and developed.
The recent rounds also indicate funding is still rolling in for Chinese commercial launch companies. China has committed to constructing a pair of communications megaconstellations in low Earth orbit, requiring a surge in launch capabilities and cadence, providing opportunities for contracts for commercial players, particularly those developing medium-lift or larger reusable launchers. Developing reusable launch vehicles is a strategic goal for China.
“After rockets can be recovered and reused, the main changes we’ll see are faster launch frequencies and, of course, a noticeable reduction in launch costs,” Rong Yi, a rocket designer with the China Aerospace Science and Technology Corporation (CASC), said during China’s annual political sessions in Beijing earlier in March.
“This shall bring us closer to the reality of large-scale, rapid, and free access to space. From a technological development perspective, the application of recovery technology will drive upgrades and innovation in our capabilities,” Rong said.
Competition intensifies
iSpace is aiming to bring Hyperbola-3 to the pad in a year in which several competitors are preparing for inaugural launches of reusable and future reusable rockets of their own. These include Zhuque-3 (Landspace), Tianlong-3 (Space Pioneer), Pallas-1 (Galactic Energy), and Gravity-2 (Orienspace). CASC is also working towards launch of the Long March 12A with a reusable first stage following a high-altitude splashdown test in January.
iSpace itself has a mixed launch record. It notably became the first privately-backed launch company in China to reach orbit in 2019 with the solid-fueled Hyperbola-1 rocket. Four of its following six Hyperbola-1 launches have, however, ended in failure, the latest occurring in July 2024.
The company completed a hop test to an altitude of 178 meters in November 2023 followed with a 343-meter test a month later, as part of its moves towards the reusable Hyperbola-3. iSpace also opted to skip the planned smaller Hyperbola-2, following trends of developing larger launchers to fit requirements for constellation launches.
With fresh funding in place, iSpace now faces the challenge of proving that Hyperbola-3 can deliver on its promise of rapid, reusable access to space, and reach full-scale commercial operations.