Stoke Space has raised another $1 billion in Series E funding as it races to develop a fully reusable rocket. The company aims to rival SpaceX and disrupt the launch industry.
The new funding round, led by Point72 Ventures and Spark Capital, brings Stoke’s total raised to $2.3 billion. CEO Andy Lapsa told TechCrunch that this Stoke Space funding will help scale production, increase flight frequency, and fund development of a larger second-generation vehicle.
Unlike competitors like Rocket Lab and Relativity Space, Stoke is pursuing the industry’s ultimate goal: a rocket where both the booster and second stage return to Earth for reuse. This approach has never been successfully achieved before. The startup’s first vehicle, the Nova Pathfinder, is expected to launch in early 2027. It can carry three metric tons to low-Earth orbit, which Lapsa claims would make it the largest debut vehicle from any U.S. rocket maker.
Stoke Space Funding Supports Innovative Heat Shield Technology
SpaceX has spent over $10 billion on its Starship program over the past decade, and that vehicle still hasn’t reached orbit. One major challenge has been protecting the rocket’s second stage from extreme heat during reentry.
Stoke is taking a different approach. Instead of traditional thermal shielding, the company flows super-cooled liquid hydrogen through its heat protection system. This active cooling solution has been extensively tested on the ground and will debut on the first flight.
“We can flow excess coolant — more than we think we need in order to overcool the surface of the vehicle — and take a conservative stance from that perspective in early flights,” Lapsa explained.
The company has already completed structural and operational tests on the first stage at its Moses Lake facility. Next comes test-firing each stage on the ground, followed by integrated testing with the launch pad. This Stoke Space funding enables the company to move forward with these critical development milestones.
Pathfinder and Block 2: A Two-Vehicle Strategy
Stoke has already secured launch contracts for the Pathfinder vehicle. The company is producing multiple units, giving it confidence in reaching orbit regardless of this funding round.
But Stoke isn’t stopping there. The company revealed plans for the Nova Block 2, a larger rocket capable of carrying 15 metric tons to low-Earth orbit — slightly more than SpaceX’s Falcon 9. This vehicle has been under development for several years and shares the same engine technology and active cooling heat shield.
The Block 2 is targeting a 2029 debut, coinciding with Elon Musk’s stated timeline for phasing out the Falcon 9. When asked about the opportunity this presents, Lapsa noted that regardless of Falcon 9’s retirement, the space industry will scale as quickly as rockets can get off the ground. The fresh Stoke Space funding will be essential to bringing both vehicles to market on schedule.
Competing in the Growing Launch Market
Lapsa also hinted at a competitive advantage over SpaceX in the commercial launch market. When Starship begins carrying paying customers, companies and government agencies may find themselves competing with SpaceX’s own internal projects for launch slots — potentially paying premium prices.
Stoke, by contrast, has not announced plans to operate its own space assets. This positions the company as a pure-play launch provider for third-party customers. “Now is the time to get moving… so that we can finally start deploying a lot of the constellations and applications that we aspire to as an industry but have been stuck on the ground,” Lapsa said.
With this latest Stoke Space funding, the company joins a crowded field of launch startups. However, its focus on full reusability sets it apart from competitors who are only pursuing partial reuse. While SpaceX has proven booster reuse with Falcon 9, recovering both stages remains the holy grail for affordable space access.
What This Stoke Space Funding Means for the Industry
The $1 billion Series E round represents a significant vote of confidence from investors. The round was led by Point72 Ventures and Spark Capital, with participation from General Innovation, Glade Brook Capital, US Innovative Technology, Washington Harbour Partners, Woven Capital, and Y Combinator.
Lapsa emphasized that this Stoke Space funding is specifically intended “to lay the infrastructure, to scale in production and flight frequency, and importantly to fund the development of the second generation vehicle.” The company now has substantial financial resources to compete with established players in the launch market.
The space industry has long awaited truly low-cost access to orbit. Full reusability is the key to achieving that goal. If Stoke can successfully develop and operate both the Nova Pathfinder and Block 2 vehicles, it could fundamentally alter the economics of space launch.
Looking Ahead to 2027 and Beyond
“We have multiple Pathfinder vehicles in production, and we have confidence that we will bring Pathfinder to market and into orbit regardless of this round,” Lapsa said. Still, the additional funding provides a valuable buffer against the delays and technical challenges that often plague rocket development.
Lapsa expressed confidence in the company’s launch timeline following a series of structural and operational tests. “The ground system is checked out to the extent that we can do it without the rocket, and the rocket’s checked out to the extent that we can do it without the launch pad. So the next step is to do them together.”
With Stoke Space funding now totaling $2.3 billion, the company has the capital needed to pursue its ambitious vision. The next few years will reveal whether Stoke can achieve what no company has done before: a fully reusable rocket that dramatically reduces the cost of accessing space. For an industry hungry for innovation and competition, the stakes could not be higher.
