Stoke Space is raising $1B to challenge SpaceX with fully reusable rocket
What's the deal? Stoke Space is raising $1 billion in a Series E round to accelerate development and production of its fully reusable Nova rocket, according to people familiar with the matter. The Kent, Washington-based startup is raising the money at a valuation of around $9 billion, excluding the new funds, and aims to close the round this month.
Why now? The round follows an extended Series D that closed in February, in which Stoke raised $860 million. The company said then it had raised $1.34 billion to date.
What's the endgame? Founded in 2019 by former engineers from Jeff Bezos-backed Blue Origin, Stoke is working to ready Nova for its debut launch. Unlike SpaceXDealroom has a profile for this one. Try Dealroom →'s partially reusable Falcon 9, which recovers only its first stage, Nova is designed to be recovered in full after each flight.
Earlier investors include Breakthrough Energy VenturesDealroom has a profile for this one. Try Dealroom →, founded by Bill Gates, along with Glade Brook CapitalDealroom has a profile for this one. Try Dealroom → and Toyota VenturesDealroom has a profile for this one. Try Dealroom →. A representative for Stoke declined to comment.
What could go wrong? No rocket operator has yet achieved full reusability. Rival Relativity SpaceDealroom has a profile for this one. Try Dealroom →, valued at $4.2 billion in 2021, later hit problems with its 3D-printed rocket technology.
The signal: Numerous companies are developing Falcon competitors amid a capacity crunch in the global launch market. At $1 billion, Stoke's raise sits in the top 1% of all Series E rounds by US tech companies — a sign of how much capital investors are willing to commit to breaking SpaceX's grip on reusable launch.
Read more: Bloomberg
Image credit: Stoke Space
