iSpace Prepares for Hyperbola-3 Launch with New Funding

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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) on 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 states that 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 aimed towards the development of the Hyperbola-3 and, with strong participation from Sichuan Industrial Revitalization Fund Investment Group Co., Ltd., involved an assembly plant in Shifang City, Sichuan province.

The development trend illustrates 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 that funding is still rolling in for Chinese commercial launch companies. China has committed to constructing a pair of communications megaconstellations in low Earth orbit, necessitating a surge in launch capabilities and cadence. This situation presents 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.

A notable statement from Rong Yi, a rocket designer with the China Aerospace Science and Technology Corporation (CASC): “After rockets can be recovered and reused, the main changes we’ll see are faster launch frequencies and a noticeable reduction in launch costs.”

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 the launch of 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. However, four of its following six Hyperbola-1 launches have ended in failure, with the latest occurring in July 2024.

The company completed a hop test to an altitude of 178 meters in November 2023, followed by a 343-meter test a month later, as part of its moves towards the reusable Hyperbola-3. Interestingly, iSpace opted to skip the planned smaller Hyperbola-2, following trends of developing larger launchers suited for the requirements of 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.

Funding & Financial Implications

The recent Series D funding is critical for the advancement of iSpace's projects, particularly in a competitive market where speed and innovation are paramount. Here's a table summarizing the recent funding rounds along with their implications:

Conclusion

As the commercial space race continues to expand, the strategies employed by companies like iSpace will be crucial for securing their footholds in the market. The growth of investment from both local governments and private sectors indicates a robust endorsement of the strategy for developing reusable launch vehicles.

For More Information

• SpaceNews Article on iSpace
• Deep Blue Aerospace Funding
• Commercial Space Expansion in China
• China's Megaconstellation Projects
• Government Focus on Commercial Space

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