Yahoo Finance Japanese firms invest in Sierra Space, aiming for a stake in private space stations
Three prominent Japanese companies, MUFG Bank, Tokio Marine&Nichido Fire, and Kanematsu have led a $290 million funding round for American spaceship company Sierra Space on Tuesday. This investment comes amidst increasing collaborations between Japan's corporate sector and private space companies, including both domestic startups and international giants like SpaceX.
Sierra Space, a spin-off from Sierra Nevada Corp in 2021, is part of an exclusive group of space industry enterprises working on the construction of a private space station. This project is envisioned by NASA to succeed the International Space Station, which has been operational for two decades, by 2030.
The recent fundraising round saw significant contributions from previous investors and insiders of Sierra Space, as well as the three Japanese firms. The investments from these companies amount to several tens of billions of yen, securing them a stake in Sierra Space. With this funding round, the spaceship company's current valuation likely exceeds $5 billion.
MUFG Bank, one of Japan's top three banks, is recognized for its investments in local space startups such as Astroscale, an orbital debris-removal company. The bank's co-investor in Sierra Space, insurer Tokio Marine&Nichido Fire, confirmed the strategic partnership but did not provide details about their respective investments.
In December last year, Sierra Space partnered with Kanematsu, Japan Airlines and the Oita prefectural government to convert a regional airport into Asia's first "horizontal spaceport" in Oita's southwestern region. However, this project suffered a setback due to the bankruptcy of Virgin Orbit, another American space company that had partnered with airline ANA Holdings.
Meanwhile, the Japan Aerospace Exploration Agency (JAXA) has experienced unsuccessful space missions since last year. However, JAXA recently launched its SLIM lander this month which could make Japan the fifth country to land a spacecraft on the moon if the mission planned for early 2024 is successful.
In another development, Mitsui Sumitomo Insurance introduced the world's first "lunar insurance" to ispace inc's moon landing mission, which unfortunately failed in April. This move signifies the innovative strides being taken in the Japanese space sector, as it continues to interact with private space companies on an international level.
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