Japanese space startup Letara has raised ¥2.6 billion, approximately $16 million, in a pre-Series A round to develop large hybrid rocket systems for defense, security and space launch markets.
The Sapporo-based company's core technology separates solid fuel from liquid oxidizer. Unlike traditional hybrid rockets that use paraffin wax, Letara employs inexpensive materials such as plastic and rubber, relying on a proprietary manufacturing process to ensure reliable ignition and consistent combustion.
The round was co-led by Headline Asia, JIC Venture Growth Investment and Incubate Fund. Strategic investors included NES Corporation, an energy company; Toyoda Gosei, a Toyota Group supplier of rubber and plastic components; and Greece-based IT firm Frontier Innovations.
Letara co-CEO Shota Hirai said the company will move beyond demonstrating its thrusters in space to develop hybrid rocket systems for both space and defense applications. The company is targeting three technical challenges: generating sufficient thrust, maintaining performance consistency and controlling combustion.
The global hybrid rocket propulsion market is projected to reach $2.6 billion by 2032, up from $848 million in 2024, representing a 15 percent compound annual growth rate.
Competitors in hybrid propulsion include Japan's Interstellar Technologies, China's Galactic Energy, South Korea's InnoSpace, Singapore's Equatorial Space, German startup HyImpulse and Australian Gilmour Space, alongside various U.S. launch providers.
Japan has been aggressively investing in its domestic space sector while easing restrictions on defense exports—steps designed to build globally competitive homegrown aerospace companies.
