The new financing round, which brings the American commercial space company’s total capital raised to $1.7bn, was co-led by MUFG Bank, Japanese trading company Kanematsu, and property and casualty insurance group Tokio Marine & Nichido Fire Insurance
US-based commercial space company Sierra Space has raised $290m in a Series B funding round at a valuation of $5.3bn.
The new financing round brings the American firm’s total capital raised to $1.7bn, which is said to be the largest by a commercial space company over the combined Series A and B rounds.
It was co-led by MUFG Bank, Japanese trading company Kanematsu, and property and casualty insurance group Tokio Marine & Nichido Fire Insurance.
Besides, the funding round also had participation from Sierra Space’s existing investors.
MUFG Bank president and CEO Junichi Hanzawa said: “MUFG aspires to help all our stakeholders take the next step forward, and we believe this should serve as the starting point for all business activities.
“Sierra Space Corporation’s aim to build a platform in space that will benefit life on Earth is the very embodiment of this concept, and MUFG has decided to invest in Low Earth Orbit to support commercialisation, the creation of new industries, and the resolution of social issues.”
Sierra Space also secured investment from General Atlantic, Moore Strategic Ventures & Sierra, and Coatue with participation from funds and accounts managed by BlackRock Private Equity Partners, AE Industrial Partners and Vice Family Trust.
The company intends to build global partnerships and expedite plans to develop a transformational space tech ecosystem with the latest funding, aiming to transform tomorrow’s space economy.
According to Sierra Space, the growth capital will fuel its first mover advantage in deploying the first business-ready commercial space station.
It has been involved in the development of the first commercial space station for five years. Sierra Space has achieved various hardware design and testing milestones.
The company expects full-scale testing by the end of this year.
Besides, Sierra Space is currently transitioning the Dream Chaser spaceplane into orbital operations for NASA cargo resupply missions to the International Space Station following several years of development.
The commercial space company said it has $3.4bn in active contracts.
Sierra Space CEO Tom Vice said: “Sierra Space is excited to create a long-term strategic relationship with our Japanese investors and industry partners.
“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.”