Beijing Interstellar Glory Space Technology Ltd., better known as iSpace, has secured significant new funding as it prepares for the inaugural launch of its ambitious Hyperbola-3 reusable rocket. The company announced Series D financing of “several hundred million yuan” ($100 million yuan = $13.8 million) on March 11th. This investment round was spearheaded by the Sichuan Tianfu Xinyun Digital Economy Development Fund Co., Ltd., a provincial fund managed by Sichuan Development (Holding) Co., Ltd.
The substantial investment will primarily fuel the research and development of the methane-liquid oxygen-fueled Hyperbola-3, as well as the construction of a dedicated test bench for the Focus series engine and a new engine production line in Mianyang, Sichuan province. A large-scale 35,000-square-meter factory, slated for completion in 2026, is expected to yield an annual production capacity of 100 engines. These facilities will also serve other space enterprises within Sichuan and across China, bolstering the region’s commercial space sector.
iSpace currently has three Hyperbola-3 rockets in various stages of production. The company is targeting a first orbital launch attempt, incorporating a sea recovery of the first stage, in December 2025. A subsequent reuse test flight is planned for June 2026. While precise specifications remain undisclosed, previous statements indicated the two-stage Hyperbola-3 measures 69 meters in length and boasts a payload capacity of 8,500 kilograms to low Earth orbit (LEO) in reusable mode, and 13,400 kg to LEO in expendable mode.
This latest round follows previous C and C+ financing secured in September 2024, which also contributed to Hyperbola-3 development and the construction of an assembly plant in Shifang city, Sichuan province. This investment trend reflects a broader pattern of local and provincial governments actively supporting commercial space companies in China. The central government's designation of commercial space as a key sector further underscores this support.
The influx of funding underscores the continued investment in Chinese commercial launch companies. China's commitment to building substantial communications megaconstellations in LEO necessitates a significant increase in launch capabilities, creating lucrative opportunities for commercial players, especially those developing medium-lift or larger reusable launchers. Developing reusable launch vehicles is a crucial strategic objective for China.
“After rockets can be recovered and reused, the main changes we’ll see are faster launch frequencies and, of course, a noticeable reduction in launch costs,” noted Rong Yi, a rocket designer with the China Aerospace Science and Technology Corporation (CASC), during China’s recent political sessions. “This shall bring us closer to the reality of large-scale, rapid, and free access to space. From a technological development perspective, the application of recovery technology will drive upgrades and innovation in our capabilities,” Rong added.
iSpace's ambitious timeline places its Hyperbola-3 launch within a year that will see several competitors vying for their own inaugural launches of reusable and future reusable rockets, including Zhuque-3 (Landspace), Tianlong-3 (Space Pioneer), Pallas-1 (Galactic Energy), and Gravity-2 (Orienspace). CASC is also pursuing the launch of the Long March 12A with a reusable first stage.
iSpace's launch history is a mixed bag. It notably achieved a historic first in 2019, becoming the first privately-funded Chinese launch company to reach orbit with its solid-fueled Hyperbola-1 rocket. However, four out of its subsequent six Hyperbola-1 launches have resulted in failures, the most recent in July 2024. The company conducted hop tests in November and December 2023, reaching altitudes of 178 meters and 343 meters respectively, in preparation for the Hyperbola-3.
iSpace's decision to forgo the smaller Hyperbola-2 reflects a broader industry trend towards developing larger launchers to better meet the demands of constellation launches. With its fresh funding secured, iSpace faces the critical challenge of proving the Hyperbola-3’s capabilities and achieving full-scale commercial operations.