Vector, a US-based microsatellite launch services provider backed by diversified conglomerate Kanematsu, wound down indefinitely on Friday due to a “major change in financing”.
Founded in 2016, Vector was working on rockets designed to launch microsatellites into orbit. Its first launch vehicle, Vector-R, was expected to carry a satellite weighing up to 60 kilograms, while a second, Vector-H, would be capable of handling a 290-kilogram payload.
The company has also established a software-defined satellite unit called GalacticSky. It has secured commitments for $101m in equity funding to date.
Jim Cantrell, Vector’s co-founder and CEO, has been let go and replaced by president of launch services John Garvey. A core team is considering options to complete development of its smaller launch vehicle and honour contracts that include one signed with the US Air Force just last week.
Vector had planned to demonstrate a suborbital launch this summer but this has not yet occurred, and it is unclear whether the funding woes resulted in the delay, or if the delay caused the financial troubles.
The company announced $70m in series B funding in October 2018 to grow its marketing and sales teams, launch production of its rockets and build a factory in the US state of Arizona, but its claim of financing issues could indicate problems with the full amount coming through.
Kodem Growth Partners led the series B round, which also included Morgan Stanley Alternative Investment Partners, a subsidiary of investment bank Morgan Stanley, as well as Sequoia Capital, Lightspeed Venture Partners and Shasta Ventures. It followed a $21m series A in July 2017.
Kanematsu provided an undisclosed amount of funding for Vector in early 2017 as part of a partnership agreement that helped the latter tap into the Japanese market.
The corporate’s commitment was later revealed to have formed part of a $4.5m bridge round closed shortly afterwards. That round also featured Sequoia, Desert Angels, Arizona Technology Investors, Space Angels Network and Kurrent Investment.
