German launch startups are raising cash
German launch startups are raising cash
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RFA and Isar launch funding campaigns
Last week, Isar Aerospace announced that it had hired a new chief financial officer, David Kownator. As part of the announcement on LinkedIn, the company touted Kownator's experience with large-scale fundraising. This hinted that Isar was pursuing a new funding round. A few days later, a source told me that not only was Isar pursuing additional funding, but the startup’s German compatriot Rocket Factory Augsburg was doing the same.
Rocket Factory Augsburg
When it comes to Rocket Factory Augsburg, I was lucky enough not to have to rely on rumours alone. A source shared a memo created by Venionaire Capital on behalf of RFA that was, I assume, sent to potential investors to drum up interest. The memo offers not only a detailed look at the German startup's latest funding round, but also offers insight into the company’s previous funding efforts, which up to this point had not been made public.
The Venionaire Capital memo states that the size of the funding round will be between €70 and €75 million. The company plans to close the funding round by early 2023. The funds raised will primarily be used for the development of the propulsion systems (27%), operating costs (25%), and the development of the RFA ONE vehicle's structures (18%). Other intended uses for the capital include ground systems, avionics, a test flight, industrialisation, and the orbital stage.
As previously stated, the memo also shed light on previously unknown funding to date for RFA. It states that RFA has raised $34 million to date, with $45 million in signed contracts in the books.
Another interesting element of the memo is several timeline projections the company outlined. RFA projects that it will complete the industrialization of its operations and become profitable between 2024 and 2026. Additionally, the company plans to reach a weekly launch cadence by 2030.
RFA declined to comment when asked for a statement regarding the publishing of this story. A request for comment was also sent to Venionaire Capital, with no answer received as of publishing.
Isar Aerospace
When it comes to Isar, I was not unable to track down the same concrete confirmation. However, a source has stated that the figure the company is aiming to raise is large. I have not included the figure mentioned by the source here as I could not verify the figure with a second source confirming it or a primary source like an investor's memo.
A large funding round would, however, track with Isar’s stated requirements from their new CFO. And if the figure I have been told is accurate, Kownator has had to hit the ground running.
When asked, an Isar spokeswoman told me that the company does “not comment on such speculations.”
Bureaucratic red tape: Behind the scenes, Isar has struggled with bureaucratic red tape that has held up testing of key components of the company’s propulsion system.
Isar has been utilizing a gas-generator test stand on a rural property in the Kohlberg district of Reischach, Germany since May 2019. In 2020, provisional approval from the district office to conduct this testing expired. As a result, a new approval process was carried out, with noise complaints from the property’s neighbors being a key element of proceedings. The process would drag on, with Isar left waiting more than a year for an answer from the district.
Despite continuing protests from the company’s neighbours, Isar received approval to continue testing at the site in September 2021. However, less than six months later in February 2022, a loud bang was heard by residents of Kohlberg that appeared to have emanated from the Isar test site.
In a statement to OVB online, Isar said that “an incident” had occurred in the operation of one of their test benches. The incident followed just weeks after residents filed a lawsuit appealing the decision to grant Isar its permit to continue testing. The lawsuit was later withdrawn, with the residents seeing no possibility of success with their legal proceedings.
In order to continue testing at the site, Isar was required to submit a detailed report to the district office regarding what happened. This report has not been made available to the public, with the company citing the potential disclosure of trade secrets. Isar was also reportedly required to perform a number of corrective measures, including the installation of a “shrapnel protection curtain” (my best guess from the German to English Google translation). The company was finally given the go-ahead to continue testing from the site on 22 July, much to the disappointment of Isar’s neighbours.
The company’s Kohlberg testing location is, however, only a small part of its testing infrastructure. Isar’s main engine testing facility is located at the Esrange Space Center in Sweden. In the coming weeks or months, this location is expected to host the first hot fire test of an Aquila rocket engine, which will power the first and second stages of the company’s Spectrum launch vehicle.
Isar Aerospace France: While researching Isar, I came across a National Trade and Companies Register of France entry that detailed the launch of a French subsidiary of the German launch startup. The company was founded just last week with its head office in Villecerf, which is about 80 kilometres south of Paris. The entry states that the company’s primary activities are “research and development.” Isar CEO Daniel Metzler and new CFO Josef Fleischmann are listed as the new company’s CEO and managing director.
Difficult times ahead
Both RFA and Isar are leaders in the effort to develop a privately-funded European launch vehicle. However, that does not mean that the process has been plain sailing. It’s a difficult industry with razor-thin margins and an incredibly tall barrier to entry. Both companies continued success is going to have to come in the growing shadow of an increasingly threatened global economy that has resulted in a difficult investment environment for space companies. As a result, both companies’ current funding efforts may just be make or break for their survival.
A hero’s homecoming - ESA astronaut Samantha Cristoforetti returned from the International Space Station (ISS) aboard a SpaceX Crew Dragon spacecraft. Cristoforetti’s six-month stay aboard the station featured a number of milestones, including becoming the first European woman to complete a spacewalk and the first European woman to serve as commander of the ISS. The mission was Cristoforetti’s second to the orbiting outpost.
Should’ve asked for directions - The first Skyrora Skylark L launch ended abruptly after it pitched horizontally shortly after leaving the launchpad. The suborbital launch vehicle landed in the Norwegian Sea just 500 metres away from the launch site in Langanes, Iceland. Sykora did not make any public announcements regarding the launch attempt, with the announcement of its failure coming several days after the launch attempt.
Debris Hunter is on the case - ArianeGroup-backed French launch startup MaiaSpace published a vacancy on LinkedIn for a Senior System Engineer for on-orbit servicing. In the listing, the startup reveals its goal of creating a "debris hunter" version of its Maia vehicle that will be utilized for active debris removal missions. The listing does also hint at offering a broader range of on-orbit servicing capabilities, but it does not explicitly detail them.
The Americans have arrived - Virgin Orbit's Cosmic Girl carrier aircraft touched down at Cornwall Airport Newquay ahead of the first LauncherOne mission from UK soil later this year. The LauncherOne rocket itself arrived separately aboard a Royal Air Force C-17 Globemaster.
It’s a bird. It’s a plane. No, it’s a spaceplane! - German spaceplane startup POLARIS announced that it had successfully completed a two-day flight test campaign at the Rotenburg Airport. The test campaign involved three separate vehicles, with two in the sky and a third completing its first roll tests. The primary focus was on the 3.5-metre ALEDA demonstrator, powered by turbojet engines. The vehicle completed three successful flights over a period of four hours. POLARIS aims to perform the first flight test of its larger and more powerful ATHENA demonstrator in the coming weeks.
Science goes commercial - UK-based space science as a service data provider Blue Skies Space announced its Mauve science mission. Mauve is designed to monitor the flaring activity of stars that are hosts to potentially habitable exoplanets. It aims to assist scientists to understand the impact of powerful stellar flares on exoplanet atmospheres and their potential to harbour life. The satellite will be built in partnership with Hungarian space tech company C3S LLS and Netherlands-based small satellite builder ISISPACE. Construction of the satellite will commence in November, with a launch expected in 2024.
European Starlink-like programme adopted - The EU Parliament Committee on Industry, Research, and Energy adopted a resolution on the EU Secure Connectivity Programme which seeks to develop a sovereign telecommunications constellation. The initiative was adopted in a landslide vote. Funding for the programme will reportedly be pulled from the margins of existing programmes, uncommitted funding, and in-kind contributions and will total €1.7 billion.
Yes, we’re getting an aerospike engine! - Spanish launch startup Pangea Aerospace has signed a contract with ESA that will provide support for the company’s ITAN project. With ITAN, Pangea aims to develop, manufacture, and test two types of 3D-printed injectors for its methalox aerospike rocket engines.
Lightning download speeds powered by lasers - DLR announced that it had inaugurated a new ground station at its Oberpfaffenhofen facility in Germany. The centrepiece of the new optical ground station is a new telescope with a diameter of 80 centimetres. The new station’s primary purpose will be to aid with the development and testing of last communications solutions.
Welcome to the club - Slovakia has officially become an ESA Associate Member state. The country's new status was unanimously approved by the ESA Council in March, but as of last week, it's official. Slovakia's Associate Member status will be valid for an initial duration of seven years.
The French, Germans, and Americans team up - Franco-German space startup The Exploration Company has selected US in-space mobility provider Benchmark Space Systems to develop the propulsion system for its second demonstrator flight, Mission Possible. Under the agreement, the pair will work together to develop an innovative propulsion system that will utilize non-toxic high-test peroxide propellant. Mission Possible is expected to be launched in 2024.
Free launch opportunity - The UK Space Agency published an Expression of Interest (EOI) call for its Launch Challenge initiative. Through the initiative, UKSA aims to offer as many as four funded spaces aboard small satellite missions launched from UK spaceports. The EOI is open to both national and international organizations and, according to UKSA, there will be no prioritization of UK national organizations over international organizations.
The UK seeks to spark interest in its spaceports - The UK Space Agency published an Expression of Interest (EOI) call for its In-Orbit Demonstration initiative. Through the initiative, UKSA aims to offer funding for the development and launch of scientific and technology demonstration missions. The missions will be launched from UK spaceports. The EOI is open to both national and international organizations like the Launch Challenge, there will be no prioritization of UK national organizations over international organizations.
Looking for junk in orbit - German space situation awareness startup Vyoma announced the successful closing of an extended seed financing round. The round was led by Happiness Capital and Atlantic Labs and included Faber Ventures. The size of the round was not disclosed. The startup will utilize the funding to procure its first spacecraft on which debris-tracking cameras will be mounted, perform a flight test of its debris image-processing algorithms, and deploy a portfolio of services to support satellite operators. The first spacecraft of the Vyoma constellation is expected to be launched in 2024.
Up, up and into orbit - The first satellite built under ESA's Eurostar NEO programme was launched aboard a SpaceX Falcon 9. The Eutelsat Hotbird 13F is one of an identical pair of satellites developed by Airbus for Eutelsat as part of an ESA Partnership Project. The pair of geostationary satellites will enhance TV broadcasts to homes across Europe, Northern Africa, and the Middle East, replacing three older satellites.
A long-term commitment - French aerospace and defense company HEMERIA has signed a long-term partnership with Thales Alenia Space to mass-produce aluminium composite structures for Space Inspire. The new line of geostationary satellites is the result of a partnership between ESA and Thales Alenia Space. HEMERIA's new partnership with Thales cements a two-year co-engineering collaboration and will run until 2030.
Space fashion comes to Rome - ESA opened a concept store in Rome. According to the agency, the store offers a mix of “cosmic fashion, space fun, and official ESA merchandise.” The store is the first physical ESA store outside of one of the agency's official locations, and was created to “bring ESA and its space mission closer to the general public.” The store will remain open for a period of three months.
I (Andrew Parsonson) have been reporting on space and spaceflight for over five years. In September 2020, SpaceNews gave me an incredible opportunity to cover the European space beat, an opportunity that I will always be grateful for.
In late 2021 when James Webb was launched aboard an Ariane 5, I was heartbroken at how often ESA and Europe were omitted from the coverage despite the fact the telescope was being launched aboard a European launch vehicle from a European launch facility. Instead of complaining about it, I launched European Spaceflight as a way to promote the continent's excellence in space. This newsletter is an extension of that mission.
Along the way, I was also given the opportunity to write for the daily Payload newsletter. The team at Payload is amazing, and I am incredibly lucky to be a part of this exciting thing that they’re growing.
If you’d like to get in touch to discuss European space or anything really, you can connect with me on Twitter or send me an email at andrewp@europeanspaceflight.com.