Stoke Space Raises $1 Billion to Build Fully Reusable Rocket, Aiming to Rival SpaceX

Stoke Space Technologies has raised $1 billion in an initial closing of its Series E funding round, the company announced, adding to a total of $2.3 billion raised to date. The round was led by Point72 Ventures and Spark Capital, with participation from General Innovation, Glade Brook Capital, US Innovation Technology, Washington Harbour Partners, Woven Capital, and Y Combinator, among others.

CEO Andy Lapsa said the funding will enable the company to scale infrastructure, increase production and flight frequency, and develop a second-generation rocket. “This round is really to scale,” Lapsa told TechCrunch. “To lay the infrastructure, to scale in production and flight frequency, and importantly to fund the development of the second generation vehicle.”

Stoke is one of several startups aiming to compete with Elon Musk’s SpaceX, which has spent well over $10 billion on its fully reusable Starship over the past decade—a vehicle that has yet to reach orbit. Stoke’s approach focuses on a fully reusable two-stage rocket, where both the booster and the payload-carrying second stage return to Earth. That feat has never been achieved.

A key differentiator is Stoke’s active cooling system for the second stage, which flows super-cooled liquid hydrogen through thermal shielding to withstand reentry heat. Lapsa said the system has been tested exhaustively on the ground and will be deployed 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,” he said.

The first vehicle, Nova Pathfinder, is expected to take flight in early 2027 and can carry three metric tons to low-Earth orbit, which Lapsa believes will be the largest debut vehicle of any U.S. rocket maker. The company has already sold launch contracts on the vehicle. “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.

Stoke also revealed plans for a larger rocket, Nova Block 2, capable of carrying 15 metric tons to low-Earth orbit—slightly more than SpaceX’s Falcon 9. The target deployment year is 2029, coinciding with Musk’s stated timeline for phasing out the Falcon 9.

Why This Matters

Lowering space access costs: Fully reusable rockets could dramatically reduce the cost of launching satellites and other payloads, opening new commercial and scientific opportunities.
Intensifying competition: Stoke’s progress puts pressure on SpaceX and other launch providers to innovate and reduce prices, potentially accelerating the pace of space development.
High-stakes technical challenge: Achieving reusability on both stages remains unproven; success or failure will shape the future of launch economics and startup viability.

Background

Stoke Space is one of a handful of startups—alongside Rocket Lab, Relativity Space, and Firefly Aerospace—trying to challenge SpaceX’s dominance in low-cost launch. SpaceX built its success around the Falcon 9, which has a reusable booster stage, and is now developing the fully reusable Starship, which has cost over $10 billion and has not yet reached orbit. Stoke aims to leapfrog competitors by targeting full reusability from the start, using a novel active cooling system for the upper stage. The company has raised $2.3 billion in total and is building its Nova Pathfinder rocket at facilities in Moses Lake, Washington.

Key Perspectives

Stoke Space (CEO Andy Lapsa): The company is focused on scaling infrastructure, production, and flight frequency while developing a second-generation vehicle. Lapsa expresses confidence in the timeline and the unique cooling technology, noting that the ground systems are checked out and that the next step is integrated testing with the rocket and launch pad. Investors (Point72 Ventures, Spark Capital): By leading a $1 billion round, they signal strong belief in Stoke’s technical approach and market potential, betting that full reusability can disrupt the launch industry and capture demand from customers seeking cheaper, more frequent access to orbit. Skeptics/Critics: Rocket development is notoriously difficult and prone to delays—few debut vehicles reach orbit on time or with full success. SpaceX’s multibillion-dollar investment in Starship demonstrates the enormous capital and time required. Stoke’s ambitious timeline could slip, and the technical challenges of active cooling at reentry scale remain unproven in flight.

What to Watch

First flight of Nova Pathfinder (early 2027): Whether Stoke can meet its target and successfully reach orbit will be a critical milestone.
Ground test-firing of each stage: Success or failure in upcoming engine and stage tests will provide early indicators of vehicle readiness.
SpaceX’s Starship progress: If Starship reaches orbit soon, it could alter the competitive landscape and customer expectations for reusability timelines.

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