Sierra Space Raises $290M in Series B Funding, Boosting Total Investment to $1.7B

Sierra Space, a commercial space company, has announced that it has closed a $290 million Series B funding round, bringing its total capital raised to $1.7 billion. This funding round is the largest ever capital raise by a commercial space company in the combined Series A and B rounds. The funding round was co-led by MUFG, Japan’s largest bank, along with Kanematsu Corporation and Tokio Marine and Nichido Fire Insurance. Sierra Space’s valuation has now reached $5.3 billion, solidifying its position as a leader in the global space industry.

With this new funding, Sierra Space plans to establish global partnerships and accelerate the development of a space tech ecosystem that will transform the space economy. The company is currently transitioning its Dream Chaser spaceplane from development to recurring mission operations for NASA cargo resupply flights to the International Space Station (ISS). Sierra Space has also been working on the development of the first commercial space station for the past five years and expects to complete full-scale testing by the end of this year. This positions Sierra Space as a leader in the development of business-ready commercial space stations for use in Low Earth Orbit (LEO) and deep space.

Sierra Space CEO Tom Vice expressed excitement about creating a long-term strategic relationship with Japanese investors and industry partners. The funding round includes participation from Japanese companies involved in a study with the Japanese Aerospace Exploration Agency (JAXA) to explore activities in LEO as the ISS approaches the end of its service.

Sierra Space has been expanding its partnership network in Japan, including exploring Oita Airport as a landing site for its Dream Chaser spaceplane. The company has also partnered with Mitsubishi Heavy Industries to develop various technologies for orbit and on orbit.

The Dream Chaser spaceplane, which is backed by a NASA contract for cargo resupply missions to the ISS, is capable of transporting crew and cargo to and from LEO. It can perform a low-g landing on compatible commercial runways worldwide. Sierra Space’s active contracts, including the Dream Chaser program, amount to $3.4 billion.

Citi acted as the private placement agent for Sierra Space in this Series B funding round.

Sierra Space has also entered into a strategic agreement with MUFG Bank, Kanematsu Corporation, and Tokio Marine and Nichido Fire Insurance in the Asia-Pacific region. Through this partnership, the companies aim to contribute to the commercialization of LEO, the creation of new industries, and the improvement of life on Earth. Sierra Space plans to use Oita Airport as an Asian hub and spaceport for its Dream Chaser spaceplane, which is expected to have significant economic benefits for Japan.

The strategic partnership with MUFG Bank, Kanematsu, and Tokio Marine and Nichido Fire Insurance will support Sierra Space in the commercialization of LEO and expand the supply chain of the Japanese space industry. The companies will work together to develop the space industry and explore new solutions and business models for activities in LEO after the retirement of the ISS.

Overall, Sierra Space’s latest funding round and strategic partnerships strengthen its position as a leader in the commercial space industry and pave the way for future advancements in space technology and exploration.