iRocket, a New York-based startup founded in 2018, is entering an increasingly cold and competitive space industry. It is now daydreaming about a rumored $400 million buyout from the very troubled Special Purpose Acquisition Company (SPAC). This would be the startup’s first test flight of its Shockwave launch vehicle. This crazy, cool vehicle can transport payloads anywhere from 300 kg all the way up to 1,500 kg. Unlike some of its competitors, iRocket has ambitious goals—full reusability and turnaround within hours. It fails to find the political support and funding it needs and find a launchpad in an increasingly crowded market.
Currently, iRocket’s financial situation appears precarious. That’s enabled the company to raise relatively little venture funding to date—just a few million dollars. As of yesterday, news broke that $28.8 million has been redeemed from the SPAC’s trust fund. The trust is now worth just 0.5% of its original value—$8,000 versus $1.6 million. This drastic cut deepens red flags regarding the viability of the acquisition as well as the future of iRocket’s operations.
iRocket is definitely going after government contracts to accelerate this engagement strategy. Today, the company is under an $18 million Other Transaction Authority agreement with the Air Force Research Lab and a $1.8 million contract with the Space Force. These contracts further highlight the startup’s objective to establish itself as a competitive force in the growing space defense sector. The difficulties it is encountering are grave, especially when taking into account the highly capital-intensive nature of the industry within space.
The market for launch vehicles has become increasingly competitive. Competitors such as Firefly’s Alpha and Rocket Lab’s Electron are already in a vigorous race for the same contracts and customers. iRocket’s Shockwave is hoping to set itself apart by prioritizing responsiveness first and foremost, with goals of 24 hour launch turnarounds or less. Until the company can pull off a successful test flight, all of their promised innovation is unproven.
iRocket currently lists just four employees on LinkedIn—not including board members. Here are just a few of the questions its operational capacity and resource allocation raise. As the startup attempts to prove its capabilities and secure further funding, the limited team size may hinder its ability to compete effectively in the fast-paced space sector.
TechCrunch’s space and defense reporter, industry expert Aria Alamalhodaei, covers iRocket and the booming space and defense industries. She stresses that iRocket’s lofty aspirations must result in tangible results to attract further investment. The startup’s current situation serves as a reminder of the difficulties faced by emerging companies in an industry where technological advancement demands substantial financial backing.
