Sierra Space Secures Nearly $300 Million Investment from Japanese Consortium, Valued at $5 Billion

Sierra Space, the aerospace subsidiary of Sierra Nevada Corporation, is in the final stages of raising nearly $300 million in funding, sources have revealed to CNBC. This funding round values Sierra Space at approximately $5 billion and is expected to be officially announced in the coming week.

The equity raise for Sierra Space is primarily led by Japanese investors, including MUFG, Kanematsu, and Tokio Marine, with substantial participation from existing investors and insiders. Citigroup is playing a pivotal role in advising on the deal. Notably, two years ago, Sierra Space secured $1.4 billion in funding at a valuation of $4.5 billion, with investors such as General Atlantic, BlackRock, AE Industrial Partners, Coatue, and Moore Strategic Ventures participating in that round.

Sierra Space's recent fundraising efforts come at a crucial time as the company focuses on advancing its Dream Chaser spaceplane project. Dream Chaser, designed to transport cargo and eventually crew to low Earth orbit as a reusable spacecraft, bears a resemblance to a scaled-down NASA Space Shuttle and is intended to launch atop conventional rockets and land on runways, similar to an airplane.

While the initial launch of Dream Chaser was initially scheduled for late the previous year, delays in the development of United Launch Alliance's Vulcan rocket caused a postponement. The upcoming plan is to have Dream Chaser launch on ULA's second Vulcan mission, with the first Vulcan launch expected in the fourth quarter of this year.

Additionally, Sierra Space is actively involved in the private space station sector and plans to conduct a "pathfinder" demonstration mission for its LIFE (Large Integrated Flexible Environment) habitat in 2026, contributing to the evolving landscape of space exploration.