Letara Pivots to Defense and Large-Scale Rocketry With $16M Funding

Sapporo-based startup Letara is shifting its focus from small satellite thrusters to the development of large rocket systems for the defense, security, and space markets, as TechCrunch first reported. The company is capitalizing on Japan's efforts to build a domestic aerospace sector by easing defense export restrictions and investing billions of dollars into the industry.

To fuel this expansion, Letara raised ¥2.6 billion (approximately $16 million) in a funding round co-led by JIC Venture Growth Investment, Headline Asia, and Incubate Fund. Other participants included Toyoda Gosei (a Toyota Group supplier), NES Corporation, and Frontier Innovations, a fund backed by the Japan Aerospace Exploration Agency (JAXA).

Co-CEO Shota Hirai told TechCrunch that the company aims to address challenges in combustion control, performance maintenance, and thrust generation. Letara's proprietary hybrid design utilizes liquid oxidizers and solid fuel made from inexpensive materials like rubber and plastic, which the company claims provides more thrust and less waste than traditional paraffin wax systems.

While Letara began as a Hokkaido University spinoff in 2020 focused on thrusters, Hirai noted an "insane growing demand" for launch vehicles and high-thrust propulsion for spacecraft moving from low earth orbit (LEO) to geostationary orbit (GEO). Letara has already secured undisclosed contracts from the Japanese government, satellite operators, and rocket companies. The startup now faces competition from global players, including Galactic Energy in China, InnoSpace in South Korea, Equatorial Space in Singapore, HyImpulse in Germany, and Gilmour Space in Australia, as well as various U.S. firms.