Letara secures $16 million to scale hybrid rocket engine technology

Sapporo-based startup Letara has secured approximately 2.6 billion yen (roughly $16 million) in a Pre-Series A funding round to scale its hybrid rocket engine technology. Originally a spin-off from Hokkaido University, the company is transitioning from developing small satellite thrusters to creating larger propulsion systems for space launch vehicles, defense, and security applications.

Letara’s technology utilizes a hybrid design that separates solid fuel from a liquid oxidizer. By using inexpensive and widely available materials such as plastics and rubber as fuel, the company aims to reduce costs and complexity compared to traditional liquid or solid rocket engines. This method allows for controlled combustion, the ability to stop and restart engines, and improved safety by avoiding highly volatile chemical propellants.

The funding round included participation from several institutional and strategic investors, including Headline Asia, JIC Venture Growth Investments, Incubate Fund, and Frontier Innovations, which is linked to JAXA. The capital will be used to accelerate the commercialization of these engines and to strengthen development capabilities through international recruitment. A key upcoming milestone for the company is an in-orbit ignition test with an international partner.