German launch provider Isar Aerospace has secured $20 million (€18.39 million) in growth debt from California-based ATEL Ventures.
Munich-based Isar Aerospace is developing its two-stage Spectrum rocket, which is designed to deliver payloads of up to 1,000 kilograms to low Earth orbit. According to reporting from industry consulting firm Euroconsult, the company is also planning a larger version of the rocket, currently being referred to as Spectrum 2. This larger vehicle will be capable of delivering up to 4,000 kilograms to low Earth orbit.
ATEL Ventures announced the completion of the growth debt agreement with Isar on 4 June, stating that the company would use the facility to purchase “state-of-the-art equipment used in the production of its launch vehicles.” ATEL’s deal with Isar is not its first foray into the launch market, having previously invested in a US-based launch startup, Stoke Space.
In a statement accompanying the announcement, Isar CFO David Kownator explained that the debt facility was an important element of its plans to build its new manufacturing facility.
“Developing a launch vehicle along the approach of vertical integration requires upfront investment in specialist equipment,” explained Isar CFO David Kownator. “This agreement with ATEL Ventures is an important component of our financing model, especially as we are starting the construction of a new large-scale manufacturing facility.”
In May, Isar announced that it had signed an agreement with European real estate developer VGP Group to build its new company headquarters in the municipality of Vaterstetten near Munich. While building permits for the new facility are still pending, construction on the 40,000-square-metre lot is expected to begin this year.
The announcement of this new debt facility comes just over a year after the company closed its €155 million Series C funding round in March 2023. With the closure of its Series C, Isar had raised a total of over €310 million.
Spectrum’s inaugural flight
Isar has yet to share an expected launch date for the Spectrum’s inaugural flight. It has, however, shared several promising milestones on the road to its debut over the last year.
In March 2023, the company shared that it had completed over 124 hot fire tests of its Aquila rocket engines over the previous 12 months. The engine will be utilized aboard both the first and second stages of Spectrum.
By October 2023, Isar announced that it was in the process of manufacturing the first of its flight-ready Aquila engines. With the announcement, the company also revealed that it had completed 260-second-long hot fire tests, which represents a significantly longer firing than will be needed for an actual flight.
The company’s most recent update on its progress towards an inaugural Spectrum flight was the official inauguration of the Andøya Spaceport orbital launch facility in Norway, which occurred in November 2023. At the time, Isar CEO Daniel Metzler explained that the milestone represented “the final stage of our path to [a] first flight.”
