- Sierra Space’s latest funding round co-led by prominent Japanese entities, raising the company’s total investment to a record $1.7 billion.
- The company is gearing up for the transition of its Dream Chaser® spaceplane into orbital operations for NASA cargo resupply missions to the International Space Station.
September 26, 2023, LOUISVILLE, Colo. – Sierra Space, a pioneering commercial space company with an impressive $3.4 billion in customer contracts, has announced the successful closure of a $290 million Series B funding round. This latest financial milestone pushes the company’s total capital raised to an unprecedented $1.7 billion over its combined Series A and B rounds, solidifying Sierra Space’s position as a dominant player in the burgeoning global space industry with a valuation of $5.3 billion.
The funding is expected to catalyze Sierra Space’s ambitious plans to construct a transformative space tech ecosystem, setting the stage for the space economy of the future. At the forefront of these plans is the Dream Chaser spaceplane, which, after years of meticulous development, is on the cusp of transitioning to recurring mission operations, facilitating NASA cargo resupply flights to the International Space Station (ISS).
Tom Vice, CEO of Sierra Space, expressed his enthusiasm about the company’s trajectory and the strategic relationships being forged, especially with their Japanese investors. He stated, “As we transition our revolutionary Dream Chaser spaceplane into operations for NASA cargo resupply missions to the International Space Station, we focus our capital deployment to the development and operations of the first commercial space station – the next step in our in-space infrastructure – the growth of our national security offering and scaling our space systems components business.”
The funding round witnessed significant participation from Japan, co-led by MUFG, Japan’s largest bank, Kanematsu Corporation, a renowned Japanese trading company, and Tokio Marine & Nichido Fire Insurance, the country’s top property and casualty insurance group. Junichi Hanzawa, President & CEO of MUFG Bank, Ltd., emphasized the alignment of Sierra Space’s vision with MUFG’s aspirations, highlighting the potential for creating a significant social impact in Japan and across Asia.
This collaboration is not just financial. Sierra Space has been exploring the potential of Oita Airport as a landing site for its Dream Chaser spaceplane, in partnership with Oita Prefecture, Kanematsu, and Japan Airlines. Furthermore, a blossoming partnership with Mitsubishi Heavy Industries aims to usher in a range of technologies both to orbit and on orbit.
The Dream Chaser, a family of reusable spaceplanes, stands out with its three variants designed to cater to cargo, crewed, or national security space requirements. It boasts the capability to transport crew and cargo to and from Low Earth Orbit (LEO) and can facilitate a 1.5 low-g landing on compatible commercial runways globally. The Dream Chaser is backed by a NASA contract to perform cargo resupply missions to the ISS, contributing to Sierra Space’s impressive $3.4 billion in active contracts.
Citi played a pivotal role in this Series B transaction, acting as the private placement agent for Sierra Space.
About Sierra Space Sierra Space is a trailblazing commercial space company, leading the charge into the Orbital Age™. With over three decades of space flight experience spanning 500 missions, the company is revolutionizing space transportation with its commercial spaceplane, Dream Chaser®, and its modular, three-story commercial habitation and science platform, LIFE™. Sierra Space’s comprehensive suite of systems and subsystems, spanning solar power to propulsion, is setting the stage for the new space economy.
