Sierra Space raises $550 million in Series C funding

WASHINGTON — Sierra Space raised $550 million in a Series C funding round led by LuminArx Capital Management, valuing the privately held spacecraft manufacturer at about $8 billion, the company said March 5.

Existing investors also participated in the round. “With this new capital, Sierra Space will be able to further focus on its national security space efforts,” the company said in a news release.

Based in Louisville, Colorado, Sierra Space was formed in 2021 as a commercial spinout of Sierra Nevada Corporation, a privately held aerospace and defense contractor. The company initially focused on civil and commercial space infrastructure, anchored by its Dream Chaser spacecraft, a reusable spaceplane developed under a NASA contract to deliver cargo to and from the International Space Station.

The vehicle has taken longer than expected to reach operations amid changes in the commercial space market. Sierra Space said it is exploring both civil and national security missions for Dream Chaser. A demonstration flight is planned for late 2026.

In recent years, the company has expanded into the defense market as the Pentagon increases reliance on commercial suppliers for satellite constellations and other space systems.

Sierra Space has secured contracts to build missile-tracking satellites for the Space Development Agency and has pursued other military space programs while expanding manufacturing capacity in Colorado.

“Sierra Space has sharpened its focus toward national security customers,” said the company’s founder and board chair Fatih Ozmen. “We appreciate the confidence shown by our new equity investor, LuminArx Capital.”

The company’s investors include General Atlantic, Coatue, Moore Strategic Ventures and Andalusian Private Capital.

The funding round comes shortly after Sierra Space named longtime defense executive Dan Jablonsky as chief executive officer.

U.S. Defense Secretary Pete Hegseth recently visited Sierra Space as part of the Pentagon’s “Arsenal of Freedom” initiative promoting a “commercial-first” approach to defense procurement and highlighting the need for domestic manufacturers.