Germany’s space sector gained strong momentum as HyImpulse Technologies GmbH, a Neuenstadt am Kocher–based rocket startup, secured €45 million in fresh funding to accelerate its hybrid rocket development. The funding marks a major step toward Europe’s dream of independent and affordable access to space, especially for small satellite launches.
A Bold Step Forward for European Launch Independence
HyImpulse’s recent funding round combines €15 million in Series A equity and about €30 million in public financing, including grants and loans from regional and federal innovation programs. The capital will drive the company’s expansion, focusing on the design, testing, and production of its SL1 orbital rocket and the SR75 suborbital demonstrator.
The company’s leadership views this funding as more than just financial support. It represents a vote of confidence in Europe’s ability to compete with American and Asian launch providers. Over the past decade, European startups such as Isar Aerospace and Rocket Factory Augsburg have emerged, but the continent still depends heavily on external partners for small-satellite launches. HyImpulse plans to change that narrative.
The Vision Behind HyImpulse
Founded in 2018 by a team of engineers with deep roots in Germany’s aerospace community, HyImpulse aims to build safe, cost-efficient, and flexible launch vehicles. The company uses a hybrid propulsion system, which combines solid and liquid propellants. This approach simplifies engine design, reduces mechanical complexity, and improves safety during handling and storage.
HyImpulse’s founders believe that hybrid propulsion can bridge the gap between traditional liquid-fuel rockets, which require complex infrastructure, and solid-fuel rockets, which lack controllability. Their hybrid engine burns paraffin-based solid fuel with liquid oxygen, producing high thrust while maintaining controllability during flight.
This design allows HyImpulse to operate with fewer moving parts, lower maintenance requirements, and reduced risk of catastrophic failure—three major cost drivers in the launch industry.
The Technology That Powers HyImpulse
HyImpulse’s propulsion system stands out because it merges simplicity with performance. Paraffin wax, commonly used in everyday materials like candles, plays a surprisingly powerful role in rocket propulsion. When combined with liquid oxygen, it burns efficiently, producing clean exhaust gases and high energy output.
Hybrid rockets also avoid the cryogenic complexity of fully liquid systems, which often require intricate plumbing, heavy turbopumps, and cryogenic fuel management systems. By using a single liquid oxidizer, HyImpulse reduces ground support needs and simplifies the refueling process.
In 2024, HyImpulse successfully launched its SR75 suborbital rocket, proving the reliability of its hybrid engine under real flight conditions. The SR75 flight validated the company’s engine design, materials, and avionics. Engineers gathered vital data to refine systems for the upcoming SL1 orbital rocket, which will carry small payloads to low Earth orbit.
The SL1: Europe’s Next-Generation Orbital Rocket
The SL1 rocket represents HyImpulse’s flagship product and a cornerstone of its commercial vision. The three-stage launcher will carry up to 600 kilograms of payload into low Earth orbit, catering primarily to the growing small satellite and CubeSat markets.
HyImpulse plans to operate the SL1 as a dedicated small-satellite launcher, offering flexibility that large rideshare missions cannot provide. Many small satellite operators face delays because they depend on larger rockets’ schedules, such as those of SpaceX or Arianespace. HyImpulse’s goal is to provide on-demand, point-to-point launch services, allowing customers to deploy satellites exactly when and where they need them.
The SL1’s modular design will also allow customers to adjust payload configurations and launch trajectories, catering to commercial, scientific, and defense applications. The company expects to conduct its first orbital flight test in 2027, following a series of qualification and demonstration missions.
Funding Partners and Their Role
The €45 million funding round drew strong interest from European investors who share HyImpulse’s vision of an independent European space capability. The round was led by Campus Founders Ventures and included participation from Helantic, GIMIC Ventures, the Global Resilience Innovation Fund (GRIF), MBG Baden-Württemberg, and other regional innovation funds.
Public financial institutions and development agencies also played a critical role. The Start-up BW Innovation Fonds and Sparkassen-Beteiligungsgesellschaft Heilbronn-Franken supported HyImpulse as part of their broader mission to foster high-tech innovation in Baden-Württemberg. These partnerships demonstrate how government and private capital can align to fuel strategic industries such as space technology.
HyImpulse’s CEO emphasized that this investment enables the company to move from the prototype phase into full-scale production. The company now plans to expand its facilities, hire more engineers, and scale up manufacturing to produce multiple rockets annually.
Europe’s Competitive Landscape
Europe’s small-launcher ecosystem is heating up. Companies like Isar Aerospace, Rocket Factory Augsburg (RFA), and PLD Space in Spain are all competing to capture a share of the small-satellite launch market. However, HyImpulse differentiates itself with its hybrid propulsion technology, which offers a potential cost advantage over liquid-fuel competitors.
While Isar Aerospace uses traditional liquid engines and RFA employs staged-combustion technology, HyImpulse’s approach focuses on operational simplicity. The company believes it can achieve lower launch costs and faster turnaround times between missions.
The global small-satellite market continues to expand as industries—from agriculture and climate monitoring to telecommunications—demand faster, cheaper, and more flexible access to orbit. Analysts project that by 2030, thousands of small satellites will launch annually, creating opportunities for specialized launch providers like HyImpulse.
Challenges Ahead
Despite its momentum, HyImpulse faces steep challenges on the road to orbital flight. Achieving a successful suborbital launch marks a significant milestone, but reaching orbit requires exponentially greater precision and reliability. The company must master multi-stage separation, payload integration, and orbital insertion accuracy.
The hybrid engine, while simpler and safer, must prove its scalability and performance consistency in orbital conditions. Manufacturing repeatability, quality control, and supply chain stability will play decisive roles in determining HyImpulse’s long-term success.
Market competition also poses risks. The small-launcher segment has become increasingly crowded, and many startups struggle to balance innovation with cost efficiency. To succeed, HyImpulse must deliver reliable launches at competitive prices while building a steady backlog of customers.
The Road Ahead
HyImpulse plans to use the new funding to expand its facilities in Neuenstadt am Kocher and enhance its testing infrastructure. The company will scale its SR75 suborbital program in 2026 to serve early customers who need suborbital payload testing or microgravity experiments. These missions will generate early revenue and provide valuable operational experience.
By 2027, HyImpulse aims to launch the first SL1 orbital mission, marking a major milestone for both the company and Europe’s space industry. If successful, the SL1 will demonstrate Europe’s capacity to build independent, cost-effective, and environmentally conscious rockets.
HyImpulse also intends to collaborate with European research institutions and government agencies to integrate its technology into the broader European space ecosystem. These partnerships could include satellite operators, universities, and defense agencies seeking specialized payload delivery.
A Vision Beyond Profit
HyImpulse’s mission extends beyond business goals. The team envisions a Europe where space access is no longer limited to major players or dependent on non-European providers. Their hybrid propulsion technology reflects that vision: practical, sustainable, and built for a future where space becomes a shared resource rather than an exclusive domain.
The new funding round gives HyImpulse the resources to transform that vision into reality. It strengthens Europe’s strategic autonomy in space and sets the stage for a new era of small-satellite missions that serve both commercial and societal needs.
Conclusion
HyImpulse’s €45 million raise marks a defining moment for Europe’s space ambitions. The company combines innovative hybrid propulsion, strong investor backing, and a clear market vision to challenge established players in the global launch industry. By focusing on flexibility, affordability, and safety, HyImpulse positions itself as a crucial player in Europe’s quest for independent space access.
As the company prepares for its next major milestones—the SR75’s commercial missions in 2026 and the SL1’s orbital debut in 2027—Europe watches closely. If HyImpulse succeeds, it will not just launch rockets; it will ignite a new chapter in Europe’s technological and industrial independence.
Also Read – Top 10 Retirement Plans That Actually Work in India