Firm developing a fully reusable rocket raises a quarter of a billion dollars

A Washington-based launch company announced Wednesday that it has raised $260 million in Series C funding, a significant capital raise at a time when it has become more difficult for some space companies to attract funding.

"The market is tough, but I think what we’re doing is poised to go straight to the end state of the industry, and I think investors recognize that," said Andy Lapsa, Stoke Space's co-founder and chief executive officer, in an interview with Ars after the announcement.

By "end state of the industry," Lapsa means that Stoke is developing a fully reusable, medium-lift rocket named Nova. The vehicle's first stage will land vertically, similarly to a Falcon 9 rocket, and the second stage, which has a novel metallic heat shield and engine design, will also land back on Earth.

Big demand for on-demand launch

Lapsa said there is incredible demand for launch services and that ultimately, only companies that can offer ultra-low-cost prices and on-demand service will be successful. That's why the company has made difficult technical decisions such as developing a highly efficient full-flow staged combustion engine and a reusable upper stage. SpaceX's much larger Starship rocket is the only other fully reusable rocket in development at this time.

Stoke Space has raised $220 million in earlier rounds. The company's new and existing investors in the latest fundraising round include Breakthrough Energy Ventures, Glade Brook Capital Partners, Industrious Ventures, Leitmotif, Point72 Ventures, Seven Seven Six, the University of Michigan, Woven Capital, and Y Combinator. Stoke declined to release a valuation for the company following the latest fundraising efforts.