Ursa Major Secures $85M to Revolutionize Launch Services

The Expanding Launch Sector and Ursa Major's Strategy

The landscape of the launch industry is becoming increasingly competitive. While major aerospace companies are investing in in-house rocket engine development, space startup Ursa Major proposes a different approach – providing engine outsourcing services to emerging launch providers.

Recent Funding and Growth Plans

Founded six years ago by former propulsion engineers from SpaceX and Blue Origin, Joe Laurienti, Ursa Major is now poised for significant expansion. This growth is fueled by a recently secured $85 million Series C funding round.

The investment was led by BlackRock funds and included participation from XN, Alsop Louie, Alpha Edison, Dolby Family Ventures, KCK, Space Capital, Explorer 1, and Harpoon Ventures.

Accelerating Engine Production

Laurienti emphasizes the company’s goal to accelerate industry innovation through faster development cycles. Ursa Major aims to dramatically increase engine production, targeting a rate of one engine per week in 2022, escalating to two per week shortly thereafter.

Currently, assembling a single engine requires approximately five days of work from a dedicated employee, with additional time needed for preparation before shipment to clients.

Current Clients and Contracts

The company has already secured commercial contracts with companies like Phantom Space and Stratolaunch. Furthermore, they have established research and development agreements with government entities. However, their engines are yet to be deployed in actual space missions.

Growing Demand for Launch Services

Laurienti believes a complex launch ecosystem is essential to meet the increasing demand for space access. Despite declining launch costs, the need for space launch services is projected to grow substantially throughout the decade.

Fortune Business Insights forecasts the global launch market to expand from $12.67 billion in 2019 to as much as $26.16 billion by 2027.

Challenges in Rocket Engine Development

Developing rocket engines presents significant technical hurdles. The difficulties faced by Blue Origin in developing the BE-4 engine for United Launch Alliance, and Elon Musk’s acknowledgement of a “Raptor production crisis,” demonstrate the complexities involved.

Ursa Major’s Engine Portfolio

Ursa Major currently offers two engine models:

• Hadley: A 5,000-pound thrust liquid oxygen and kerosene engine currently entering production.
• Ripley: A next-generation engine, ten times more powerful than the Hadley, delivering 50,000 pounds of thrust.

The company has commitments to deliver over 50 Hadley engines in the coming year, with the Ripley expected to begin production within the next two years, according to Laurienti.

A Technology-Focused Approach

Laurienti draws a parallel between Ursa Major and Intel, a company known for continuous processor innovation. He suggests that, similar to how Dell and Lenovo utilize Intel’s processors, rocket companies should leverage specialized engine expertise.

He advocates for a shift away from complete vertical integration, arguing that rockets should not rely on engine designs from a decade prior. The company positions itself as a dedicated technology development firm.

Manufacturing and Testing Facilities

The company operates a manufacturing facility in Colorado, utilizing 3D printing technology for engine production. This facility is co-located with three test stands, where each engine undergoes rigorous testing before delivery to customers.

The newly acquired capital will be allocated to expanding manufacturing capabilities and initiating development on future engine designs.