Kiwi space capsule startup takes off with $10.5 million pre-Seed raise

An Auckland-based startup has raised US$7.35 million (A$10.5m) in pre-seed funding to build commercial payload capsules for space.

The round for Outlier Space was led by by New Zealand VC GD1, supported by Nova Threshold, Brian Cartmell, Airtree, Icehouse Ventures, Investible and Side Stage Ventures. 

The capital is to develop an autonomous, reusable satellite capsule to carry research and manufacturing payloads to microgravity on any type of rocket, then return them to Earth, with hopes to hold a first test flight in 2028,

Target customers include US and European pharmaceutical, biotechnology and advanced materials companies needing microgravity conditions to produce things difficult to develop on Earth.

Founder and CEO Jamie France, said his engingeering team previously designed and launched orbital rockets, built satellite buses, and delivered payloads to orbit the Moon and explore its surface. 

“Our people have been at the forefront of numerous globally significant advances in space. It shows that we have the talent to deliver a world-first commercial offering from New Zealand,” he said.

“The cost to orbit is at an all-time low. The International Space Station, which has proved the science over the last three decades, is being decommissioned soon. We’re already seeing strong demand for a commercially viable, uncrewed commercial platform, which is what we are building.” 

Rocket Lab veteran

France, who spent 16 years working on New Zealand America’s Cup sailing campaigns and then nearly a decade at Rocket Lab, said the possibilities include cancer treatments, improved drug discovery, next-generation semiconductors and human tissue models. 

“Microgravity is an environment where gravity no longer dominates, allowing molecular and surface forces to shape behaviour that is normally hidden on Earth,” he said.

“Outlier is like the landlord for a very special factory. Our customers supply the manufacturing equipment, and we enable that equipment to bypass gravity so they can produce their materials. To do that, we need to take them to space and bring them all home again safely.”

GD1’s Vignesh Kumar said they’d followed France’s career for several years.

“He proved at Rocket Lab that he can build the production engine behind a world-leading launch program, and he’s now assembling a team of aerospace veterans to do it again,” he said.

“GD1 has built deep conviction in New Zealand’s space hardware ecosystem through our portfolio over the past few years, and we’re proud to continue here by leading Outlier’s first round.”