China's LandSpace raises $175m Series C
Chinese commercial rocket developer LandSpace has raised RMB1.2 billion ($175 million) in a Series C extension co-led by Sequoia Capital China, the VC arm of property developer Country Garden, Matrix Partners China and Co-Stone Capital.
Other investors include the China Small Medium Enterprises Development Fund, Lightspeed China Partners, Gopher Asset Management, and an investment arm of Hong Kong-listed property developer Sunac. LandSpace's Series C closed last November at RMB500 million, led by Country Garden's VC arm.
Proceeds of the two tranches will go towards the development of a new launch vehicle – Zhuque-2 – which will use a liquid oxygen and liquid methane propellant system. LandSpace claims Zhuque-2 is China's first mid to large-size rocket powered by liquid fuel. It has a carrying capacity of six tons. Zhuque-1 launched at Jiuquan Satellite Launch Center in 2018 but failed to get into the orbit.
LandSpace has secured several commercial contracts. In April, it signed agreements worth more than RMB100 million with UK-based Open Cosmos and Italy-based D-Orbit, according to Xinhua News Agency.
The company raised RMB300 million in an extended Series B round led by China Growth Capital in November 2018. Previous investors include Goldwind, CDB Root-Well Industrial Investment, Shiji Tianhua, PGA Venture Partners, and Chuangxiang Angel.
Landspace's Series C extension comes on the heels of a Series B round - also worth RMB1.2 billion - for i-Space, a competing Chinese commercial rocket developer. Landspace, i-Space and OneSpace are the local market leaders, but they have different development strategies. While Landspace focuses on mid-size liquid fuel launchers, OneSpace concentrates on solid fuels. I-Space has competency in both areas, across small and large payloads.
Private space companies have proliferated globally since US-based SpaceX began conducting the first private launches and orbital maneuvers in 2010.
In China, regulations were issued in 2014 encouraging start-ups to participate in civil-military integration projects. The industry started to gather momentum in 2018 with the loosening of procurement restrictions on key parts sourced from state-owned suppliers were loosened. Foreign investors are barred from the industry.
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