Japanese space tech startup Letara expands beyond satellite thrusters with $16M

Sapporo-based startup Letara has raised ¥2.6 billion (approximately $16 million) to expand from hybrid thrusters for small satellites into larger rocket systems for space, defense and security markets. The round was co-led by Headline Asia, JIC Venture Growth Investment and Incubate Fund. Strategic investors included NES (Networked Energy Services) Corporation, Toyoda Gosei, a Toyota Group automotive supplier, and Frontier Innovations, a fund managed by Frontier Innovations and backed by JAXA. Co-CEOs Landon Thomas Kamps and Shota Hirai developed Letara’s technology while researching propulsion at Hokkaido University. Spun out in 2020, the company now targets satellite manufacturers and operators, launch companies and governments. It identifies commercial satellites as its largest intended in-space propulsion market, while Japanese government demand for rocket systems is increasing. Letara separates solid fuel from the liquid oxidizer used for combustion. Its proprietary process mixes, shapes and compresses plastic and rubber to support reliable ignition and consistent burning. The company says the design can deliver more thrust with less waste than conventional hybrid rockets using paraffin wax, addressing challenges involving thrust, performance and combustion control. The global hybrid rocket propulsion market is projected to grow from $848 million in 2024 to $2.6 billion by 2032, a 15% CAGR. Competition includes Interstellar Technologies, Galactic Energy, InnoSpace, Equatorial Space, HyImpulse, Gilmour Space and U.S. propulsion and launch companies. Letara says it has won undisclosed-value orders from rocket and satellite companies and the Japanese government. Its next catalyst is an in-orbit firing test with an overseas partner. Scaling will require repeatable manufacturing, quality controls and reliable fuel and tank supply chains. Recycled plastic could eventually serve as fuel, but further testing is needed. High-thrust systems may also support spacecraft traveling from LEO to GEO and crossing the Van Allen belt quickly.