Europe’s race to build its own launch capabilities is heating up, and one of its leading startups is lining up fresh capital at a critical moment.
German rocket company Isar Aerospace is in discussions to raise around €250 million, potentially valuing the business at €2 billion, according to Bloomberg, citing a person familiar with the matter.
The announcement comes at a time when Isar is preparing for its second attempt to reach orbit this week, after its first try last year ended roughly 30 seconds after liftoff, with the rocket falling into the sea.
That earlier mission was still a milestone, marking the first attempt by a private company to launch an orbital rocket from mainland Europe.
This upcoming launch has already faced delays, first due to a technical issue and, more recently, due to weather conditions. The success of this next attempt could play a major role in shaping investor appetite for the round, according to Bloomberg.
Isar is one of several companies competing to build Europe’s next-generation launch systems. The company has been shortlisted for the European Space Agency’s €900 million European Launcher Challenge, a program aimed at achieving reliable orbital launches by next year.
Scaling rocket production
Founded in 2018 and led by Daniel Metzler, Isar Aerospace has already raised over $600 million in funding through a mix of equity and debt.
The company is building a production facility near Munich designed to manufacture up to 40 Spectrum rockets per year. These launch vehicles are built to carry small- and mid-sized satellites into low Earth orbit, with payloads of around 1,000 kilograms.
Unlike many competitors, Isar develops and tests most of its technology in-house, aiming to scale production through vertical integration.
At its core, Isar Aerospace focuses on launch services for satellite operators. It builds and operates its own rockets, targeting the fast-growing market for smaller satellite constellations.
With more than 400 employees across multiple locations, the company is positioning itself as a key player in Europe’s effort to secure independent access to space.
