Outlier Space raises USD $7.35m to build reusable capsules

Outlier Space has raised USD $7.35 million in a pre-seed funding round, which it described as one of the largest pre-seed raises in New Zealand.

The Auckland-based company plans to use the money to develop reusable satellite capsules that can carry research and manufacturing payloads into microgravity and return them to Earth. The capsules are being designed to fly on any available rocket.

The round was led by GD1, with participation from Nova Threshold, Brian Cartmell, Airtree, Icehouse Ventures, Investible and Side Stage Ventures. Outlier Space is developing an autonomous satellite capsule designed to keep payloads in space for weeks to months before bringing them back.

The company is targeting customers in pharmaceuticals, biotechnology, advanced materials and scientific research. Its pitch is based on demand for microgravity environments, where some compounds can form differently than they do on Earth.

Investor backing

Jamie France, Founder and Chief Executive Officer of Outlier Space, said the fundraising would help the company expand its team and continue development of its first spacecraft.

"We're extremely grateful for the confidence our investors have put in us. This investment enables us to recruit the talent to deliver.

"New Zealand has world-class engineers and a space industry respected globally for its cost-effective, high-quality execution. Our team has previously designed and launched orbital rockets, built multiple satellite buses, and delivered payloads that orbit the Moon and explore its surface. Our people have been at the forefront of numerous globally significant advances in space. That shows we have the talent to deliver a world-first commercial offering from New Zealand," said France.

France has worked across sport, aviation and aerospace. His previous roles include work on America's Cup campaigns with Emirates Team New Zealand, aircraft product development at Altitude Aerospace, and senior roles at Rocket Lab, where he worked on Electron, the company's manufacturing system and its launch vehicle programme.

GD1 said it had followed France's work for several years before investing. The venture firm said its decision was driven by his track record at Rocket Lab and broader changes in the orbital economy.

"We tracked Jamie for several years before investing, and our conviction only grew in that time. He proved at Rocket Lab that he can build the production engine behind a world-leading launch programme, and he's now assembling a team of aerospace veterans to do it again. With the ISS nearing end-of-life and the launch landscape evolving, the conditions for a commercial microgravity platform have never been stronger. 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," said Kumar.

Microgravity market

Outlier Space argues that lower launch costs and the expected retirement of the International Space Station are reshaping access to microgravity research. The company is positioning its capsules as an uncrewed commercial platform for organisations that want to run experiments or manufacture materials in orbit without building their own spacecraft.

France described the commercial case as a mix of timing and demand from industries working on new medicines, semiconductors and other materials. He said microgravity can reveal molecular and surface effects that are harder to achieve under Earth's gravity.

"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 platform, which is what we are building," said France.

He also outlined how the company sees its role in the supply chain for orbital manufacturing. Rather than developing the production systems used by customers, Outlier Space intends to provide the transport and return infrastructure.

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

"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," said France.

The company said its engineering and design team has been drawn from New Zealand and Australia. France said the talent pool across sport, aviation, space and health helped shape where the business was built.

"New Zealand and Australia have exceptional talent depth in high-performance sport, aviation, space and health. This is the best place in the world to build Outlier," said France.