Vector, a US-based microsatellite launch company backed by diversified conglomerate Kanematsu, received $70m in series B funding on Friday from backers led by investment firm Kodem Growth Partners.
Morgan Stanley Alternative Investment Partners, a subsidiary of investment bank Morgan Stanley, also participated in the round, as did venture capital firms Sequoia Capital, Lightspeed Venture Partners and Shasta Ventures.
Founded in 2016, Vector has developed rockets specifically designed to launch microsatellites into orbit. It has designed two rockets to date: the Vector-R, which can carry satellites up to 60 kilograms, and the Vector-H, which is able to carry a payload of up to 290 kilograms.
The company has also formed a software-defined satellite division called GalacticSky. It will use the capital to expand its sales and marketing teams and commence the production phase of the rockets, which will include construction of a factory in the state of Arizona.
Vector will also look to harness Kodem’s expertise to position itself for an eventual initial public offering, though a timeline was not revealed. Philip Friedman, operating partner at Kodem, has joined Vector’s board of directors.
The company has raised $101m to date. Sequoia led its $21m series A round in July 2017, with participation from Shasta Ventures and Lightspeed Ventures.
Kanematsu had already supplied an unspecified amount of funding for Vector in February 2017 as part of a strategic collaboration agreement that enabled the latter to offer its services in Japan.
The corporate’s commitment formed part of a $4.5m bridge round closed two months later that also featured Sequoia, Desert Angels, Arizona Technology Investors, Space Angels Network and Kurrent Investment.
Space Angels Network had previously led Vector’s $1.25m round in November 2016, which followed a $1m seed round in April the same year.
