iSpace, a Chinese rocket startup, hopes to catch the tailwinds of the excitement of this week's Chinese probe landing on the moon to launch its future fundraising.
Investors poured Rmb700 million ($101 million) into the company up to September last year, the company said about its A-plus round on Thursday.
Huo Jia, vice president of iSpace, told FinanceAsia that proceeds will be used for rocket engine development and to enhance adaptivity of the whole rocket.
He also said that iSpace plans to launch an orbital rocket in the first half of the year. It is a huge step forward for Chinese private companies to participate in the military-civilian integration strategy.
The Chinese government has allowed civil aerospace licenses since 2002, but for years no private companies could touch state projects. This situation has changed in recent years as the government began to allow and promote private capital and companies to fund the state-owned military-related industry. Aerospace is one of those targeted areas.
It is also related to the rapid development of internet technology. Huo told FinanceAsia that the rocket launching service the company provides is mostly used for three kinds of satellites: navigation, telemetry and telecommunication.
“Most of our clients are communication satellites - the kind that helps internet transmission and may replace broadband in the future,” Huo said. “But others have a wide range of applications. We help to launch satellites that can enhance the Beidou Navigation Satellite System too.”
THE SPACE RACE
Although global space budgets decreased by 2% in 2016 to $62.2 billion, many people believe it is now an ideal time for private companies around the world to increase spending on rockets, satellites and other related research.
