Interstellar Technologies, Developer of Small Satellite Launch Rocket ZERO, Passes Stage-Gate Review in MEXT's SBIR Program
Interstellar Technologies has announced that its development and demonstration of the small satellite launch rocket ZERO has passed the stage-gate review for the Ministry of Education, Culture, Sports, Science and Technology's (MEXT) Small Business Innovation Research (SBIR) Phase 3 program, securing new grants of up to approximately 7.37 billion JPY. The cumulative grant amount now totals up to approximately 15.44 billion JPY, with 20.1 billion JPY in private funding already raised. The first ZERO rocket is slated to carry seven private satellites, and a partnership with Toyota Motor Corporation and Woven by Toyota is underway to establish a manufacturing system for commercialization.
📋 Article Processing Timeline
- 📰 Published: March 31, 2026 at 23:38
- 🔍 Collected: April 1, 2026 at 01:06 (1h 28m after Published)
- 🤖 AI Analyzed: April 22, 2026 at 04:13 (507h 7m after Collected)
Interstellar Technologies Inc. (Headquarters: Taiki-cho, Hiroo-gun, Hokkaido; Representative Director CEO: Takahiro Inagawa; Representative Director President: Satoshi Nakayama; hereinafter, Interstellar Technologies) announced on March 31, 2026, that the development and demonstration of its small satellite launch rocket ZERO (hereinafter, ZERO) has passed the stage-gate review in the Ministry of Education, Culture, Sports, Science and Technology's "Small Business Innovation Research Promotion Program (SBIR Phase 3)" (hereinafter, this program), and new grants of up to approximately 7.37 billion JPY have been decided (*1).
This program aims to promote the social implementation of advanced technologies held by startups within the SBIR (Small Business Innovation Research) system. The space sector (project theme: development and demonstration of private rockets) has a project period of five years, from September 2023 to fiscal year 2027. Interstellar Technologies was initially selected as one of four companies, and in September 2024, it was chosen as one of three companies that passed the stage-gate review. This latest review saw two companies, including Interstellar Technologies, pass, moving into the final phase which includes flight demonstration. The cumulative grant amount will be up to approximately 15.44 billion JPY.
During this period, Interstellar Technologies raised a total of 20.1 billion JPY in private funding (*2), with Woven by Toyota Inc. as the lead investor. The first ZERO rocket is confirmed to carry seven private satellites from Japan and abroad. Furthermore, through a business alliance with Toyota Motor Corporation and Woven by Toyota, the company is working to establish a manufacturing system for commercialization beyond the first unit (*3). These efforts have steadily advanced both business and development aspects. As a result, the stage-gate review committee members highly praised the company, stating, "Through business alliances with major automobile manufacturers, etc., there is a sense of possibility to incorporate manufacturing know-how for mass production and make rocket launches a domestic industry in Japan," and "The plan integrates selected and screened elemental technologies, manufacturing methods, and operational methods from the research and development stage into concrete demonstrations, including the positioning of the first ZERO unit, which is a prerequisite for business viability."
The demand for satellite launches has grown dramatically over the past decade. Globally, the total number of rocket launches is increasing, with 316 launches projected for 2025. In contrast, Japan's launch count remains at 3, accounting for less than 1% of the global share. Currently, over 90% of domestic satellites are launched by foreign rockets. In its basic policy for the Space Strategy Fund, the government aims to secure domestic launch capabilities of approximately 30 launches per year by the early 2030s, using both core and private rockets. Interstellar Technologies aims to contribute to the expansion of Japan's independent space access by realizing internationally competitive space transportation services through ZERO, and to fulfill its mission of "providing space infrastructure for societal use."
*1 MEXT Stage-Gate Review Results
*2 Private funding raised
This program aims to promote the social implementation of advanced technologies held by startups within the SBIR (Small Business Innovation Research) system. The space sector (project theme: development and demonstration of private rockets) has a project period of five years, from September 2023 to fiscal year 2027. Interstellar Technologies was initially selected as one of four companies, and in September 2024, it was chosen as one of three companies that passed the stage-gate review. This latest review saw two companies, including Interstellar Technologies, pass, moving into the final phase which includes flight demonstration. The cumulative grant amount will be up to approximately 15.44 billion JPY.
During this period, Interstellar Technologies raised a total of 20.1 billion JPY in private funding (*2), with Woven by Toyota Inc. as the lead investor. The first ZERO rocket is confirmed to carry seven private satellites from Japan and abroad. Furthermore, through a business alliance with Toyota Motor Corporation and Woven by Toyota, the company is working to establish a manufacturing system for commercialization beyond the first unit (*3). These efforts have steadily advanced both business and development aspects. As a result, the stage-gate review committee members highly praised the company, stating, "Through business alliances with major automobile manufacturers, etc., there is a sense of possibility to incorporate manufacturing know-how for mass production and make rocket launches a domestic industry in Japan," and "The plan integrates selected and screened elemental technologies, manufacturing methods, and operational methods from the research and development stage into concrete demonstrations, including the positioning of the first ZERO unit, which is a prerequisite for business viability."
The demand for satellite launches has grown dramatically over the past decade. Globally, the total number of rocket launches is increasing, with 316 launches projected for 2025. In contrast, Japan's launch count remains at 3, accounting for less than 1% of the global share. Currently, over 90% of domestic satellites are launched by foreign rockets. In its basic policy for the Space Strategy Fund, the government aims to secure domestic launch capabilities of approximately 30 launches per year by the early 2030s, using both core and private rockets. Interstellar Technologies aims to contribute to the expansion of Japan's independent space access by realizing internationally competitive space transportation services through ZERO, and to fulfill its mission of "providing space infrastructure for societal use."
*1 MEXT Stage-Gate Review Results
*2 Private funding raised