Japanese space startup Letara has secured ¥2.6 billion, or about $16 million, to broaden its work in hybrid propulsion and move beyond satellite thrusters. Based in Sapporo, the company now aims to develop larger rocket systems for space, defense, and security applications.
The funding round was co-led by Headline Asia, JIC Venture Growth Investment, and Incubate Fund, with participation from strategic backers including NES, Toyoda Gosei, and Frontier Innovations. Letara says the capital will help it convert years of academic research into a scalable commercial business.
At the core of its approach is a hybrid rocket design that keeps solid fuel and liquid oxidizer separate. The startup uses accessible materials such as plastic and rubber as fuel, supported by a proprietary process that shapes and compresses them for stable ignition and consistent burn performance. The goal is to deliver stronger thrust with less waste than conventional hybrid systems.
Co-CEO Shota Hirai says the company is now targeting a wider range of uses across the space sector and beyond. Letara is also preparing for an in-orbit firing test with an overseas partner, a step it views as important for commercialization and future production.
The company's roots trace back to research at Hokkaido University, where co-CEOs Landon Thomas Kamps and Hirai explored rocket propulsion. Since its spinout in 2020, Letara has evolved from satellite-focused hardware toward larger launch and propulsion opportunities.
With demand rising for launch systems and in-space mobility, Letara is positioning itself for a broader global market. If its technology scales successfully, it could help shape a new generation of efficient propulsion systems for commercial and institutional missions.
