Sierra Space, the subsidiary of private aerospace contractor Sierra Nevada Corporation, is in the final stages of securing a funding round of nearly $300 million, according to sources familiar with the matter. This funding round values the space company at approximately $5 billion and is expected to be announced this week.
Japanese investors MUFG, Kanematsu, and Tokio Marine are leading Sierra Space’s equity round, with significant participation from prior investors and insiders. Citigroup is advising on the deal. This funding comes two years after Sierra Space raised $1.4 billion at a valuation of $4.5 billion from investors such as General Atlantic, BlackRock, AE Industrial Partners, Coatue, and Moore Strategic Ventures.
Sierra Space’s primary focus is on getting its Dream Chaser spaceplane operational. Dream Chaser has been under development for several years with the goal of delivering cargo and eventually crew to low Earth orbit as a reusable vehicle. Resembling a miniaturized NASA Space Shuttle, Dream Chaser is designed to launch on top of a traditional rocket and land on a runway like an airplane.
The first launch of Dream Chaser was initially scheduled for late last year, but delays in the development of United Launch Alliance’s Vulcan rocket have pushed back the timeline. Sierra Space now plans to launch Dream Chaser on ULA’s second Vulcan mission, with the first Vulcan launch targeting the fourth quarter of this year.
In addition to its work on Dream Chaser, Sierra Space is also involved in the development of a private space station. The company intends to launch a “pathfinder” demonstration mission of its LIFE (Large Integrated Flexible Environment) habitat in 2026.
Sierra Space did not respond to CNBC’s request for comment on the funding round. The fresh funds will provide Sierra Space with the necessary resources to further its ambitious goals in the space industry.