Japan’s Letara Raises $16M as Space Startup Expands Beyond Satellite Thrusters
Synopsis
The Sapporo startup plans to turn years of propulsion research into commercial rocket systems for space, defence and security, tapping fresh ¥2.6 billion funding as Japan builds a stronger homegrown aerospace industry.
Japanese space start-up Letara funding has reached 2.6 billion yen ($16 million) as the Sapporo-based firm pivots from small-satellite thrusters to larger rocket systems for space, defence, and security.
The Sapporo-based firm’s pre-Series A round financing was announced on August 20. The deal was led by the Headline Asia, JIC Venture Growth Investment, and Incubate Fund and involved strategic investors, including NES, Toyoda Gosei, and Frontier Innovations, an investment fund backed by the Japanese space agency JAXA.
Satellite Propulsion to Larger Rockets
According to the release, Letara’s 2.6 billion yen in investment is the second fund raising effort this year for the company, which has raised a total of 1.8billion yen as of June 2025. Earlier money had included grants and other forms of funding.
Letara, spun out from Hokkaido University in 2020, is developing hybrid propulsion technology, which isolates the oxidizer from the fuel. Their main efforts are centered on solid solid-fuel propellants made of plastics and rubber, and the company’s research is set to create propulsion systems capable of delivering far more power than any existing ones.
Letara funding will be allocated to furtherance of its efforts targeting satellite manufacturers and operators, launch companies, and government customers. The firm announced that it has secured initial contracts with some firms involved in the development of rockets, satellites, and their national government. However, the value of these contracts was not disclosed.
The next step for Letara is to demonstrate an in-space firing of one of its propulsion systems in cooperation with one of its international partners, followed by establishing manufacturing, quality control, and supply chain management processes which are consistent with a larger-scale production of its systems.
Space Investment Keeps Defence in Focus
With global space spending witnessing a rise as public spending on space continues to grow, the investment in the Letara fits in with the trends.
According to the European Space Agency’s 2026 Space Economy Report, the global space budget for civil and defense space programs was estimated at 119 billion euros for 2025, which is a 3 percent decrease from 2024. The European space spending for the same period increased by 12 percent to 13.5 billion euros.
Meanwhile, companies from Japan, China, South Korea, Singapore, Germany, and Australia are developing different technologies related to propulsion and launch systems for the international market.
In addition, U.S. firms are also working on various propulsion and launch technologies, and with Letara investment funding, another Japanese start-up joins the competition.
Source: TechCrunch
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
