Chinese rocket startup Dahang Yueqian raises $69M for tower-recovery launch vehicle
What's the deal? Dahang Yueqian, a Chinese commercial rocket startup, has closed a 500 million yuan (~$69M) funding round to develop what it calls China's first tower-recovery launch vehicle, named "Yueqian-1." The round was co-led by Qianhai Ark, Houji Capital, and Puhua Capital, with participation from a dozen other investors including Junling Capital, Haiyuan Capital, and cable manufacturer Shenhou Cable. Some existing shareholders also increased their stakes. China Renaissance served as the long-term financial adviser.
Why now? The funding comes as China's commercial space sector accelerates rapidly, with multiple private companies racing to develop reusable launch vehicles. Tower-recovery technology — catching a returning rocket booster with a launch tower rather than landing it on legs — gained global attention after SpaceX demonstrated the approach with its Starship booster in late 2024. Dahang Yueqian is betting it can bring a similar capability to China's market.
The capital will go toward completing development and achieving a first flight of the Yueqian-1 rocket, as well as R&D and testing of a 100-tonne-class liquid oxygen-methane engine.
What could go wrong? Tower-recovery is among the most technically demanding approaches to rocket reuse. SpaceX itself took years and multiple failures to reach a successful catch. A Chinese startup attempting the same feat faces steep engineering hurdles, intense domestic competition from better-funded rivals like LandSpace and iSpace, and the challenge of scaling production before its runway dries up.
The signal: This deal reflects the growing ambition — and investor appetite — in China's commercial launch sector. Chinese startups are no longer content to replicate proven Western models like propulsive landing; they're chasing the frontier. The involvement of industrial players like Shenhou Cable also hints at deepening ties between China's manufacturing base and its space startups, a pattern that could accelerate the sector's development.
Read more: jiemian.com
