Japanese Space Startup Interstellar Raises Major Series F Funding to Scale Launch and Satellite Business

Interstellar Technologies, one of Japan’s most ambitious private space infrastructure companies, has completed a ¥20.1 billion (approx. $129.7 million) Series F funding round aimed at accelerating its orbital launch and satellite businesses — a move that underscores Japan’s growing role in the global commercial space economy.

The funding round, led by Woven by Toyota alongside domestic financial and strategic investors such as SBI Group, Nomura Real Estate Development, B Dash Ventures, SMBC Edge and others, brings Interstellar’s total capital raised to ¥44.6 billion (about $287.7 million) — one of the largest fundraising achievements by a non‑listed space startup in Japan.

Fueling Japan’s First Vertically Integrated Space Infrastructure Startup

Interstellar is positioning itself as a vertically integrated space company — combining low‑cost launch services with communications satellite development and operations. This strategy echoes global leaders like SpaceX, which use in‑house launch capabilities to support satellite deployment and recurring service revenue.

The company’s primary focus remains on its ZERO orbital launch vehicle, which is designed to provide reliable access to low Earth orbit for both domestic and international payloads. ZERO has already been selected for Phase 3 of Japan’s Small Business Innovation Research (SBIR) program, making Interstellar one of only three companies to reach this stage in the government‑backed space technology initiative.

Seven satellites from domestic and overseas customers are already confirmed as payloads for ZERO’s inaugural orbital mission, and Interstellar has signed launch contracts with eight entities, including customers planning demonstration missions for satellite separation systems.

Strategic Industrial Partnerships Strengthen Manufacturing and Global Competitiveness

To support frequent launch operations, Interstellar has formalized a manufacturing alliance with Toyota Motor Corporation, with support from Woven by Toyota to help establish a scalable production system in Japan’s relatively nascent commercial space sector. This collaboration highlights the importance of cross‑industry expertise — combining Toyota’s manufacturing prowess with Interstellar’s aerospace technology — to drive down costs and increase production efficiency.

The latest funding will be strategically deployed to enhance ZERO’s development, strengthen manufacturing systems ahead of commercialization, and advance satellite research and development activities.

What This Means for Japan’s Space and Tech Industries

1. Boosting Japan’s Space Ecosystem:

Interstellar’s success reflects Japan’s evolving private space economy, which has historically been dominated by government agencies and large corporates. A well‑funded private player with a vertically integrated model increases domestic launch capacity and creates a foundation for future space services, from Earth observation to global communications.

2. Supporting Satellite and Telecom Innovation:

By building its own launch vehicles and satellite platforms, Interstellar can reduce dependencies on foreign launch providers and support recurring demand from customers — including those involved in secure communications, Earth observation, Internet‑of‑Things (IoT) networks and defense‑related space infrastructure.

3. Enhanced Japanese Technological Independence:

The development of their own launch capabilities and satellite technology helps Japan remain self-reliant in supporting their strategic needs in terms of secure satellite communications in times of geopolitical tensions and independence from other countries’ satellite capabilities.

4. Promoting Innovation and Employment at Home:

This funding, which is supported by major financial institutions and other strategic investors, is an indication of investors’ confidence in the commercialization of space technology and will encourage more funding to enter the space startup community of Japan. This funding trend can encourage other sectors like material science, software, and aerospace engineering.

Implications for Global Space Markets

Interstellar’s vertically integrated approach mirrors trends seen in the global space economy, where companies aim to capture multiple parts of the value chain — from rocket production and manufacturing to satellite operations and even service delivery. This model can provide competitive cost advantages and greater flexibility for customers seeking regular launch opportunities and integrated space solutions.

The involvement of Toyota — both through its capital investment and manufacturing collaboration — demonstrates a growing trend of traditional industrial giants engaging with space startups to unlock synergies between automotive‑scale production expertise and aerospace innovation.

Challenges and Future Outlook

While the Series F funding represents a major milestone, Interstellar and similar startups face a competitive global landscape. Companies such as Rocket Lab, Relativity Space and established players like SpaceX continue to advance launch technologies and satellite services with vast resources. Nevertheless, Interstellar’s focus on Japan-based manufacturing and integration makes it highly attractive in this region for those seeking alternatives outside Western and Chinese space infrastructure options.

Interstellar’s success is also consistent with Japanese government policies that aim to promote the development of space industry and is incorporated in their space strategies which focus on innovation and international cooperation and development of space technology capabilities within Japan.

As the company moves forward in their path towards the orbital launch for ZERO, their company growth might serve as a catalyst for new collaborative activities, talent creation, and investments in the tech and aerospace sectors in Japan, contributing towards making Japan one of the players in the space economy.