Despite an unsuccessful launch, Isar Aerospace retains investor interest
The space startup Isar Aerospace has attracted €150 million in investments. The German company received the funding from the investment firm Eldridge Industries. The funds will be provided in the form of convertible bonds.
This investment is a record for the startup, which develops launch vehicles. The company plans to use the funds to increase production. Its primary task is to begin mass-producing rockets at its plant near Munich.
Investor’s interest
Despite the unsuccessful debut launch of the Spectrum rocket in March 2025, investor interest remains high:
– the rocket was designed to launch a one-ton payload;
– the spacecraft reached a low orbit;
– the rocket’s flight ended 30 seconds after launch when it fell into the sea near Norway.
Nevertheless, the company emphasizes that the first launch was important. It provided an opportunity to collect critical data and identify technical shortcomings to be addressed in future tests.
In addition to Eldridge Industries, Isar Aerospace continues to attract the attention of other investors. The startup is participating in the European Launcher Challenge, an initiative organized by the European Space Agency (ESA). As part of the program, the ESA is allocating €169 million to support European rocket technology developers.
Overview of the startup’s activities
Isar Aerospace began operations in Ottbrunn in 2018. The company’s product is the Spectrum, a two-stage liquid-fuel rocket. It is designed to transport cargo into low Earth orbit. According to its business plan, Isar Aerospace manufactures approximately 80% of the rocket’s components in-house. At the same time, Isar Aerospace actively attracts local technology companies.
The first investments in the project came in 2018 from Bülent Altan, known for his work at SpaceX. In 2020, Isar conducted a Series A financing round, raising US$17 million. Earlybird and Airbus Ventures were the key investors, and the funds were used to develop the company’s space platform.
Who invests in a startup
At the end of the same year, Isar received an additional €75 million from Lakestar, HV Capital, and other investors. In 2021, Porsche SE became a shareholder in the startup. The buyer invested approximately US$75 million. Porsche cited Isar’s high potential as a leader in the European space industry as the reason for its decision.
NATO highly praised the company’s developments. In 2024, NATO invested US$70 million in Isar Aerospace through its Innovation Fund.
In March 2025, the Norwegian government granted Isar Aerospace a license to launch a rocket, and the first launch occurred that same month. However, the flight ended in an accident caused by a loss of control.
