Chinese rocket developer i-Space raises $173m

This is the largest single funding round in China’s commercial space field. Existing investors Matrix Partners China, CDH investments, and Spring Partners re-upped.

Other backers include CICC, Tai Zhong He Capital, Sequoia Capital China, CITIC Securities, China Merchants Securities, Rotating Boulder Fund, Shanghai International Group, Rencent Capital, Yaxiang Xingtai and Capital Link. Tai Zhong is a deep tech-focused GP, while Rencent is the investment arm of Chinese tire manufacturer Ling Long Group.

Founded in 2016, i-Space is one of China’s top three rocket developers alongside Landspace and OneSpace. They focus on medium-sized liquid-fueled launchers and solid fuels, respectively. I-Space has competency in both areas, across small and large payloads.

Last year, i-Space became the first and so far the only private player in China to launch a solid-fueled rocket into orbit. The company plans to execute another commercial launch mission this fall using its solid-fueled Hyperbola-1 rocket.

On the liquid side, i-Space has tested a self-developed engine using a 15-metric ton load of reusable liquid oxygen-methane. It is designed to be reused up to 30 times, which can cut development costs by 70%. I-Space is planning an orbital launch with this engine in 2021.

The proceeds of the latest round will be used for the development of solid and liquid-fueled products as well as recruitment. I-Space currently employs 200 people, of whom 70% are in R&D.

“The company is taking small steps but with rapid iteration – this is a good strategy with steady progress,” said Shang Liu, a senior vice president at CDH, in a previous interview. 

Wayne Shiong, a partner at China Growth Capital, told AVCJ in a separate interview that rocket capacity in China sells out quickly. “Limited capacity in this area is a bottleneck for the entire industry,” he explained.  

I-Space has raised about $280 million across four rounds. Shunwei Capital participated in its pre-Series A in 2018, and CDH led a Series A the following year. Matrix Partners China and Dianke Xinghe also took part.

The rise of space tech start-ups in China reflects a global trend. For example, SpaceX, Elon Musk’s reusable rocket venture, is in talks to raise $1 billion in Series N funding at a valuation of $44 billion, according to CNBC.

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• Topics
• Greater China
• Early-stage
• Technology
• China
• Defense & aerospace
• Sequoia Capital
• CICC
• CDH Investments Management
• Matrix Partners