German space startup HyImpulse has secured €45 million in Series B funding to accelerate the development of its SL1 orbital rocket. This milestone positions the company as a key contender in Europe’s growing small satellite launch sector and reflects increasing investor confidence in hybrid propulsion technologies as a cost-effective alternative to traditional liquid or solid-fuel systems.
Funding Round Signals Investor Confidence in Hybrid Propulsion
The €45 million Series B round was led by new investors including European growth equity firm Triangle Venture Capital Group and existing stakeholders such as Rudolf Schwarz Holding and the German Aerospace Center (DLR). The funding will be used to scale up development of HyImpulse’s flagship SL1 orbital launcher and support its first commercial flight planned for late 2025.
HyImpulse’s CEO Mario Kobald emphasized that the capital injection will enable the company to complete ground qualification tests, expand manufacturing capacity at its Neuenstadt am Kocher facility in Baden-Württemberg, and finalize preparations for the inaugural orbital launch from SaxaVord Spaceport in Scotland.
“This funding round is a major validation of our hybrid propulsion approach,” said Kobald. “It allows us to move from prototype testing into full-scale production and launch operations.”
SL1 Rocket: A Hybrid Approach for Responsive Launch
The SL1 is a three-stage small-lift launch vehicle designed to carry up to 500 kg of payload into low Earth orbit (LEO). It uses a proprietary hybrid propulsion system that combines solid paraffin-based fuel with liquid oxygen (LOX) oxidizer—offering several advantages over conventional solid or liquid engines:
- Simplified logistics: Hybrid motors are less complex than liquid engines and safer than pure solid motors.
- Throttling capability: Unlike solid motors, hybrids can be throttled or shut down mid-flight.
- Cost-effectiveness: Paraffin-based fuel is inexpensive and non-toxic.
The vehicle stands approximately 18 meters tall with a diameter of 1.3 meters. Its modular design allows for rapid integration of payloads ranging from CubeSats to larger microsatellites. The first stage features nine hybrid engines delivering ~75 kN thrust each; second and third stages use smaller variants optimized for vacuum performance.
SaxaVord Spaceport Chosen for Orbital Launches
HyImpulse has partnered with SaxaVord Spaceport on Unst Island in Shetland, Scotland—a site rapidly emerging as a hub for UK-based vertical launches. SaxaVord has received its UK Civil Aviation Authority license and is preparing infrastructure to support multiple micro-launch providers including Skyrora and Lockheed Martin-backed ABL Space Systems.
The remote location offers polar and sun-synchronous orbit access with minimal air traffic interference. HyImpulse plans static fire tests at SaxaVord later this year ahead of an inaugural orbital mission targeted for Q4 2025.
A Competitive Field of European Micro-Launchers
The European small launcher market is becoming increasingly competitive with players like Isar Aerospace (Spectrum), Rocket Factory Augsburg (RFA One), PLD Space (Miura 5), Orbex (Prime), and Skyrora all vying for early market share. Most are targeting payload classes between 100–1500 kg into LEO or SSO—serving commercial constellations, defense ISR assets, or responsive government missions.
What sets HyImpulse apart is its focus on hybrid propulsion scalability and safety profile. While Isar Aerospace uses traditional kerolox engines and RFA One employs staged combustion methalox systems, HyImpulse’s paraffin/LOX architecture offers simpler ground handling requirements—potentially reducing launch costs by up to 30% according to internal estimates.
Diversifying Europe’s Strategic Access to Space
The rise of private micro-launch providers like HyImpulse aligns with broader EU strategies aimed at strengthening sovereign access to space amid geopolitical uncertainty. With ArianeGroup’s Ariane 6 facing delays and Vega-C grounded after recent failures, smaller firms are filling critical gaps in responsive launch capabilities—especially for dual-use civil-military applications such as Earth observation or tactical communications satellites under programs like IRIS² or NATO SATCOM Post-2024.
Germany’s Federal Ministry for Economic Affairs has supported several micro-launch initiatives via ESA’s Boost! program; HyImpulse previously received over €3 million under this scheme. The new funding round may also position it favorably for future contracts under EU Commission procurement frameworks or German defense innovation programs seeking resilient space access options independent of U.S.-based providers like SpaceX or Rocket Lab.
Next Milestones: Static Fire Tests & Orbital Debut
The next major technical milestone will be full-duration static fire testing of SL1’s first stage later this year at SaxaVord. Flight hardware production is underway at the company’s expanded Neuenstadt facility where engine hot-fire campaigns have already validated core components since late 2023.
If successful, SL1 could become one of Europe’s first operational hybrid-propelled orbital-class rockets—offering flexible rideshare options alongside dedicated launches tailored for institutional customers seeking assured access windows without dependence on larger rideshare aggregators like Arianespace or SpaceX Transporter missions.
Conclusion: A Strategic Bet on Simplicity and Safety
HyImpulse’s bet on hybrid propulsion may prove timely as Europe seeks diversified access paths amid shifting global dynamics. With fresh capital secured, regulatory approvals progressing at SaxaVord, and maturing hardware validation campaigns underway—the company stands poised to transition from promising prototype phase into operational readiness within two years.
