Sapporo-based Letara, a hybrid propulsion startup spun out of Hokkaido University in 2020, raised ¥2.6 billion (~$16 million) to expand beyond small satellite thrusters into large rocket systems for space, defense, and security markets. The round was co-led by Headline Asia, JIC Venture Growth Investment, and Incubate Fund, with strategic investors including NES Corporation, Toyoda Gosei, and Frontier Innovations. Letara's hybrid rockets separate solid fuel (plastic and rubber) from liquid oxidizer, aiming for more thrust with less waste than paraffin-based competitors. The company faces competition from Interstellar Technologies, Galactic Energy, InnoSpace, Equatorial Space, HyImpulse, and Gilmour Space, and its next milestone is an in-orbit firing test with an overseas partner.
