Spanish propulsion startup Pangea Aerospace has received a significant boost, securing €23 million ($25 million) in Series A funding to propel the development of its advanced rocket engines. The investment round was spearheaded by Hyperion Fund, a Madrid-based firm specializing in aerospace, cyber, and defense sectors.
Several other firms and high-profile individuals, including André-Hubert Roussel, former CEO of ArianeGroup, also participated. This influx of capital will enable Pangea, with bases in Barcelona and Toulouse, to significantly accelerate its growth within the European propulsion systems market, targeting both institutional and private clients.
The company plans to expand its manufacturing and testing capabilities. Pangea is renowned for its pioneering work on aerospike engines, a technology recognized for its potential efficiency but historically challenging to perfect. A prototype, developed using 3D-printing technologies, underwent successful testing in 2021.
As of March 18th, Pangea boasts eight active contracts with various companies and institutions. These include collaborations with the European Space Agency (ESA) to explore high-thrust engine designs for future European reusable vehicles and the application of their engine technology to reusable upper stages. While none of these designs have yet seen spaceflight, Pangea remains committed to propulsion system development, with no intention of venturing into complete launch systems or spacecraft production.
“It follows a business model similar to Rolls-Royce in the aviation industry, which has already been validated with multiple private clients,” Pangea asserts, highlighting a strategy that contrasts with prevalent launch industry norms. Most vehicle developers integrate engine production, aiming for optimal technical and financial efficiency. However, exceptions exist, such as United Launch Alliance, which utilizes engines from Blue Origin and L3Harris for its Vulcan Centaur rocket.
This investment marks Hyperion Fund's inaugural project, following the recent announcement of its first fund closure at €150 million. The fund is dedicated to supporting companies in aerospace, defense, cybersecurity, and artificial intelligence. Hyperion confirmed ongoing discussions with leading firms in NATO nations regarding further investments. “In this unique geostrategic moment, we support founders and companies that share our vision for strengthening the allies’ technological sovereignty and security leadership,” stated Hyperion in a press release.