Stoke Space Raises $1 Billion to Compete With SpaceX

Stoke Space closed a $1 billion Series E round on Tuesday, the largest single funding round for a small‑satellite launch company in the United Kingdom. The deal, led by the European investment firm Pangaea and backed by Space Capital, BlackRock, and several sovereign wealth funds, will fund the company’s next‑generation orbital rocket and a new, larger vehicle for commercial launches. The company says the money will help it reach orbit and prepare a reusable rocket that could compete with SpaceX’s Starship.

Stoke was founded in 2019 by former SpaceX engineers who left the company after the 2019 launch of the Falcon 9. Their goal has been to build a small, low‑cost launch vehicle that can be reused multiple times, a feature that has proven a game‑changer for SpaceX. The UK’s launch market has grown rapidly in the last decade, with dozens of small‑satellite operators looking for affordable access to space. By raising a billion dollars, Stoke signals that investors see a future in a diversified launch market where multiple providers can offer reusable, rapid‑reflight vehicles.

The new capital will be used to scale up the company’s production line, develop a larger rocket called the S2, and expand its ground operations in Surrey, England. Stoke’s current S1 rocket, which has flown a few test launches, will be upgraded with a more powerful engine and a new landing system. The company plans to conduct a series of sub‑orbital tests in 2025, followed by a maiden orbital launch in late 2026. Investors noted that the round would allow Stoke to keep pace with competitors such as Rocket Lab, Blue Origin, and emerging Chinese and European players.

If Stoke succeeds, it could shift the launch industry away from a few dominant players toward a more competitive, cost‑efficient market. The company’s focus on reusability and rapid turnaround could reduce launch costs for small‑satellite operators, opening new opportunities for science, communications, and defense. The next few years will be critical; the company must meet its test milestones, secure regulatory approvals, and prove its rockets can land and launch again quickly and safely.