Stoke Space, an aerospace company developing fully reusable rockets, is reportedly securing a new funding round that could reach $500 million. According to a report from The Information, which cited two anonymous sources, this investment would elevate the company's valuation to nearly $2 billion. The round is said to be led by Thomas Tull’s United States Innovative Technology Fund (USIT).
Key Takeaways
- Reported Funding: Stoke Space is reportedly raising up to $500 million in a new investment round.
- Company Valuation: The new funding would value the company at nearly $2 billion, approximately double its previous valuation of $944 million.
- Lead Investor: The United States Innovative Technology Fund (USIT), founded by Thomas Tull, is reported to be leading the round.
- Objective: The capital is expected to finance multiple test launches of the company's fully reusable Nova rocket, with the first attempt planned for next year.
Details of the Reported Investment
The new capital injection, if confirmed, would represent a significant step for the Kent, Washington-based startup. The reported valuation of nearly $2 billion is a substantial increase from the $944 million figure cited by Pitchbook in January. This growth reflects strong investor confidence in the company's approach to creating a fully reusable launch vehicle.
Stoke Space has not yet made a public statement confirming the funding round. The information originates from a report by The Information, which attributed the details to two sources familiar with the deal. The reported lead investor, USIT, focuses on technology critical to national interests, aligning with Stoke's role in the aerospace sector.
Financial Trajectory
Prior to this reported round, Stoke Space had already raised nearly half a billion dollars since its establishment in 2019. This includes a significant $260 million Series C investment round that was announced in January. The new funds are expected to provide the necessary resources for the company to move from development to operational launch attempts.
The Nova Rocket Program
Stoke Space was founded in 2019 by Andy Lapsa and Tom Feldman, both veterans of Jeff Bezos's Blue Origin. Lapsa serves as CEO, while Feldman is the chief technology officer. Their primary goal is the development of Nova, a fully reusable, two-stage rocket designed for the medium-lift market.
The company aims to provide launch services for payloads ranging from two to 20 tons destined for low Earth orbit. This positions Nova as a competitor in a different market segment than larger vehicles like SpaceX's Starship, which has a capacity of over 100 tons.
Innovative Reusability Technology
A key feature of Stoke's design is its approach to second-stage reusability. The company has developed a novel liquid-cooled heat shield. This system is designed to protect the upper stage during atmospheric reentry, a critical challenge for achieving full reusability. This technology contrasts with the heat-resistant tiles used on many other reusable spacecraft.
The company has made steady progress in its development timeline. Two years ago, it conducted short-hop tests of a prototype for its upper stage. Currently, the first-stage booster is in the later phases of its development cycle.
Market Positioning and Competition
Stoke Space is entering a launch industry heavily influenced by SpaceX, which pioneered first-stage booster reusability with its Falcon 9 and Falcon Heavy rockets. Stoke's focus on full two-stage reusability for a medium-lift rocket is its primary differentiator.
"Starship will put pressure on the industry to follow suit with full reusability, because it just fundamentally changes the cost," CEO Andy Lapsa told GeekWire last year, suggesting that larger vehicles create more opportunities for specialized launch providers like Stoke.
Infrastructure and Strategic Partnerships
To support its ambitious goals, Stoke Space has established a significant operational footprint. The company's headquarters in Kent, Washington, spans 168,000 square feet and is located near Blue Origin's main facility. For hardware testing, Stoke operates a 75-acre site in Moses Lake, Washington.
On the East Coast, the company is constructing a launch facility in Florida. It is building at Cape Canaveral's Space Launch Complex 14, the historic site where John Glenn launched in 1962 to become the first American to orbit the Earth. This facility will be central to its plans for orbital test flights.
National Security Recognition
Even before its first orbital launch, Stoke Space has gained recognition from the U.S. government. In March of this year, the U.S. Space Force added the company to its list of eligible providers for national security space launch missions. This inclusion is a vote of confidence in the company's technology and its potential to contribute to the nation's launch capabilities.
The company's existing investors include prominent names in the technology and energy sectors, such as:
- Bill Gates’ Breakthrough Energy Ventures
- Industrious Ventures
- Y Combinator
If the new funding round is finalized, it will provide Stoke Space with the capital to conduct multiple test launches of the Nova rocket, with the first attempt slated for the upcoming year.