Interstellar Secures 3.1 Billion Yen in Series E Funding

Hokkaido, Japan – Interstellar Technologies Inc. (“Interstellar”), a leading space infrastructure company dedicated to addressing global challenges through space transportation and utilization, has successfully raised 3.1 billion yen in its Series E round via third-party share allocation to new investors such as SBI GROUP and NTT DOCOMO, INC., alongside financing from Resona Bank,Ltd. (*1). This addition brings the cumulative funding, including subsidies, to about 17 billion yen.

Backed by SBI GROUP, NTT DOCOMO, Resona Bank, Paving the Way for Japan’s First Integrated Rocket and Satellite Startup

Interstellar is pursuing Japan’s first vertical integration of the rocket and satellite businesses. In September 2023, the development of the orbital class launch vehicle ZERO was selected for the Ministry of Education, Culture, Sports, Science and Technology’s “SBIR Phase 3” (Small Business Innovation Research). Upon successful completion of two stage-gate evaluations, up to 14 billion yen will be granted by fiscal year 2027, supporting steady progress towards the inaugural launch.

Interstellar’s proposed ‘Satellite Communication 3.0’ enables direct connections with ground terminals such as smartphones, promising high-speed, high-capacity communication comparable to terrestrial networks. With this concept, the satellite department focuses on areas where the strengths of owning a rocket company can be maximized, aiming to enter the satellite communication market led by ventures such as SpaceX’s ‘Starlink’. Joint research with the National Institute of Information and Communications Technology (NICT) commenced in September 2023 (*3), with NICT also participating as an investor in this round. Additionally, in June 2024, the company was entrusted with the Ministry of Internal Affairs and Communications’ “Expanding Wireless Communication Spectrum Research Project” (*4).
As Japan’s first vertically integrated rocket and satellite startup, Interstellar will utilize this newly secured funding to accelerate both its rocket and satellite operations.

*1 Resona Bank’s credit line included
*2 Press Release on September 29, 2023 　https://www.istellartech.com/en_news/8305
*3 Press Release on October 2, 2023　https://www.istellartech.com/en_news/8327
*4 Press Release on June 21, 2024　https://www.istellartech.com/en_news/8934

Series E Round Investors (unordered, titles omitted)

SBI GROUP
NTT DOCOMO, INC.
The Seibu Shinkin Capital,Inc.
THE SEIBU SHINKIN BANK
NES Inc.
North Pacific Bank, Ltd.／Hokkaido Research Institute for the Twenty-first Century Co.,Ltd.
（Hokuyo SDGs Advance No.2 Investment Limited Partnership）
National Institute of Information and Communications Technology（NICT)
Others

Financing

Resona Bank,Ltd.

Hiroyuki Ono, Deputy General Manager, SBI Investment Co., Ltd., commented:

Space transportation is becoming increasingly important as infrastructure supporting the industrial foundation of the vast space market, with competition in the private market intensifying globally. However, domestic operators remain limited. Amid this, Interstellar Technologies Inc. has been recognized as a leading company in Japan with the potential to excel globally, prompting our investment. The SBI Group will continue to provide comprehensive support.

Takaaki Sato, Senior Executive Vice President
Representative Member of the Board of Directors, NTT DOCOMO, INC., commented:

Representative Member of the Board of Directors, NTT DOCOMO, INC., commented:
NTT DOCOMO, in addition to new technologies such as 6G and IOWN, is taking on the challenge of realizing a “Space Integrated Computing Network” using high-capacity communication and computing infrastructure in space.
We believe that Interstellar Technologies’ proposed “Satellite Communication 3.0” is an important and innovative technology that will contribute to the enhancement and efficiency of the networks NTT DOCOMO is working on.
We support the growth of Interstellar Technologies as it aims to develop satellite communication services originating in Japan.

Takahiro Inagawa, Chief Executive Officer, Interstellar Technologies Inc., commented:

The Japanese government has explicitly expressed its support for private rockets due to the growing importance of the space industry, and being selected for this support program has significantly accelerated our business. In this context, we are advancing with a vision that aims to positively impact life on Earth through the integration of space transportation and satellite communication technology. We deeply appreciate the strong support from our backers who share our vision and are committed to dedicating our efforts to development and operations to meet their expectations.

Press Release | 20240805_Interstellar Secures 3.1 billion Yen in Series E Funding