WASHINGTON — X-Bow Systems, a startup that builds solid rocket motors, has raised an additional $35 million in Series B funding, bringing the round’s total to $105 million. The latest tranche was led by Lockheed Martin Corp., which also entered a strategic agreement with the company.
The closing of the Series B series was announced May 12.
The Albuquerque, N.M.-based firm specializes in solid rocket propulsion and small launch vehicles. It plans to use the new capital to expand production and complete construction of a new “energetics campus” outside Austin, Texas — a facility designed to manufacture rocket motors and propellants using additive manufacturing techniques.
Lockheed Martin’s involvement marks a deepening interest in securing alternative sources for solid rocket motors, components that are increasingly vital to a wide range of U.S. missile systems, including hypersonic weapons. The investment comes three years after Lockheed’s attempt to acquire Aerojet Rocketdyne was blocked by the Federal Trade Commission on antitrust grounds. Aerojet was later bought by L3Harris Technologies, leaving Lockheed without a vertically integrated propulsion supplier.
“X-Bow and Lockheed Martin have entered into a strategic agreement allowing Lockheed Martin to accelerate X-Bow as a new independent supplier of solid rocket motors and other services for their existing and future programs,” X-Bow said in a statement.
X-Bow (pronounced “crossbow”) is seeking to position as a potential alternative to the industry’s dominant motor suppliers, Northrop Grumman and L3Harris. The Pentagon has long expressed concern about consolidation in the solid rocket motor market, which reduced competition and left the defense industrial base vulnerable to supply chain disruptions.
Founded in 2016, X-Bow uses proprietary 3D printing techniques to manufacture motors and propellant formulations. The company argues this method slashes lead times and costs compared to conventional production, while also allowing for more rapid design iterations.
“We have built a highly respected ‘deep hardware technology’ company with the current Series A and B investments from our venture partners,” said Jason Hundley, X-Bow’s founder and CEO.
Other participants in the Series B round include Razor’s Edge Ventures, Crosslink Capital, Balerion Space Ventures, Boeing Ventures, Bravo Victor Venture Capital, Upsher Management Company, Capital Factory Ventures, Arkenstone Capital, and Event Horizon Capital.
The latest investment by Lockheed Martin Corporation, rather than its venture arm, reflects rising urgency in the defense sector to secure critical propulsion components amid geopolitical tensions and mounting demand for precision-guided munitions.