Interstellar Technologies Secures 47.24 Million USD From Japan SBIR Program

• Interstellar secured an additional 7.37 billion JPY (47.24 million USD) after passing to final phase of the “Small Business Innovation Research (SBIR)” program
• The final phase of the program will include a flight demonstration of the technology
• Including the funds of the previous phases the total amount has reached a maximum of 15.4 billion JPY ( $98.97 million USD)

Taiki (Japan), March 31, 2026 – Interstellar Technologies (“Interstellar”), a leading space infrastructure company, is pleased to announce that its development and demonstration project for the orbital launch vehicle ZERO has successfully passed Stage-Gate review moving to the final phase of the “Small Business Innovation Research (SBIR) Phase 3” program, organized by the Ministry of Education, Culture, Sports, Science and Technology (MEXT). As a result, the company has been awarded additional funding of up to approximately 7.37 billion JPY¹ (47.24  million USD²).

The SBIR is a 3-phased governmental program aimed to promote the implementation of advanced technologies developed by startups in Japan. Interstellar was selected in September 2023 under the space section focused on the “Development and Demonstration of Private Launch Vehicles”, a project spanning for  5 years, from September 2023 to March 2028. After being selected as one of the four participating companies, Interstellar became one of three companies to pass the Phase 1 review in September 2024. In this latest round, Interstellar  is one of only two companies to pass, moving into the 3rd and final phase, which includes flight demonstration. Including the funds of the previous phases the total amount has reached a maximum of  15.4 billion JPY ( 98.97  million USD).

During the time between stage-gate reviews, Interstellar raised a total of 20.1 billion JPY (128.85 million USD) in private funding, with Woven by Toyota as the lead investor³. In addition to funding, the company has secured 7 domestic and international private satellites for ZERO’s first flight, and has established a three-way business alliance with Toyota Motor Corporation and Woven by Toyota⁴ focusing on straightening the manufacturing system for commercialization beyond the first flight. As a result, the Stage-Gate Review Committee members highly evaluated the project, stating “The business alliance with a major automaker suggests the potential to turn rocket launching into a domestic industry in Japan by incorporating manufacturing know-how for mass production,” and “The results of the  screening during the research and development stage considered that the plan integrates technologies, manufacturing methods, and operational procedures into a concrete demonstration, including the positioning of the first ZERO flight, which is a prerequisite for business viability.”

The demand for satellite launches has grown exponentially over the past 10 years. While the total number of global rocket launches increased to 316 in 2025, the number of launches in Japan remained at 3, representing less than 1% of the global market share. Currently, over 90% of domestic satellites are launched by overseas rockets. In its basic policy for the Space Strategy Fund, the government has set a goal to secure a domestic launch capacity of approximately 30 launches per year by the early 2030s using both governmental and private rockets. Through ZERO, Interstellar aims to realize an internationally competitive space transport service that actively contributes to the expansion of Japan’s independent access to space while striving to achieve its mission of “empowering society through space infrastructure.”

*1 https://www.mext.go.jp/b_menu/houdou/mext_01619.html (Japanese Only)

*2 All USD amounts are approximate, based on an exchange rate of 1 USD =  156 JPY.

*3 “Interstellar Technologies Completes Series F Round With 20.1 Billion JPY ( 129.7 Million USD)” (https://www.istellartech.com/en_news/11043 ) Note USD amounts can differ from previous press releases due to the currency exchange rates.

*4 “Interstellar Technologies Signs Three-party Business Alliance with Toyota Motor Corporation and Woven by Toyota” (https://www.istellartech.com/en_news/10168)