Stoke Space's Billion-Dollar Bet on Fully Reusable Rockets: From Engine Tests to DoD Contracts
In an era where space access is evolving from a government monopoly to a bustling commercial frontier, a Seattle-area upstart is challenging the status quo with a rocket that promises to rewrite the economics of orbit. Stoke Space, with its ambitious Nova launch vehicle, isn't just aiming for partial reusability like many of its peers—it's gunning for 100% reusability, including the notoriously tricky upper stage. Backed by nearly $1 billion in funding and fresh contracts from the U.S. Space Force, Stoke is positioning itself as a key player in unlocking on-demand orbital logistics. But as the company ramps up engine tests and eyes its first launches, the question looms: Can full reusability deliver the "20x reduced cost to orbit" that could supercharge a trillion-dollar space economy?
Company Overview and Mission
Stoke Space, headquartered in Kent, Washington—a suburb of Seattle—emerged around 2021 amid the wave of innovation sparked by SpaceX's Falcon 9 successes. While the exact founding date isn't publicly detailed, the company's trajectory aligns with the post-reusability boom, where startups are racing to make space travel as routine and affordable as air freight. At its core, Stoke's mission is to provide "seamless mobility to, through, and from space," encompassing on-demand orbital access, asset repositioning, and efficient cargo logistics Stoke Space.
What sets Stoke apart is its unwavering focus on full reusability. Unlike partially reusable systems that discard upper stages after each flight, Stoke envisions a future where every component returns intact, slashing costs and enabling rapid turnaround times. This isn't just engineering bravado; it's a strategic bet on transforming space into a dynamic ecosystem. As the company states on its website: "We’re unlocking the space economy by harnessing the power of full and rapid reusability with Nova, our 100% reusable rocket. Nova offers affordable access to, through, and from space with a 20x reduced cost to orbit" Stoke Space. This vision resonates in a market hungry for low-cost launches, especially as low Earth orbit (LEO) constellations like Starlink demand frequent, reliable access.
Stoke's approach draws from broader industry trends, including the shift toward methalox (liquid oxygen and methane) propulsion, which offers cleaner burns and easier reusability compared to traditional kerosene fuels. Competitors like Blue Origin and SpaceX are also pursuing methalox engines, but Stoke's emphasis on a fully reusable upper stage addresses a persistent technical hurdle: surviving the fiery reentry from orbit without disposable heat shields or parachutes. By tackling this, Stoke isn't merely iterating on existing tech—it's pioneering a model that could enable point-to-point orbital operations, such as repositioning satellites mid-mission or returning payloads to Earth intact.
The Nova Rocket: Pushing Reusability Boundaries
At the heart of Stoke's ambitions is Nova, a medium-lift launch vehicle designed to disrupt the launch market with unprecedented efficiency. Nova features a fully reusable first stage powered by the Zenith engine—a full-flow staged combustion cycle powerhouse using methalox propellants—and an equally innovative upper stage equipped with its own reentry heat shield and dedicated engine SpaceNews. This setup allows for vertical landings similar to SpaceX's Falcon boosters, but extends reusability to the second stage, enabling complex missions like long-dwell orbital stays or asset capture and return.
Technical specifications position Nova in the medium-lift class, though exact payload capacities to LEO or geostationary transfer orbit (GTO) remain under wraps in public disclosures. What is clear is the rocket's potential for "dynamic operations," where it could reposition satellites, deliver cargo on short notice, or even facilitate in-orbit servicing—capabilities that go beyond traditional one-way launches Stoke Space Press Releases. The Zenith engine, recently put through its paces in vertical hotfire tests, represents a critical milestone. These tests, conducted on a dedicated vertical stand, simulate real launch conditions and validate the engine's thrust and reliability for the first stage SpaceNews.
Why does this matter? Full reusability could dramatically lower the barriers to space entry. Current systems like United Launch Alliance's Vulcan or even SpaceX's Falcon 9 incur significant costs from building new upper stages per flight. Stoke's model promises a 20-fold cost reduction by reusing everything, potentially dropping per-kilogram launch prices to levels that make space-based manufacturing or tourism viable Stoke Space. In the context of geopolitical tensions—such as those in Ukraine or with China—this technology ensures resilient access to space, diversifying U.S. capabilities beyond incumbents. As one analyst notes, it's part of a broader trend where methalox engines are exploding in popularity, fueled by their scalability and environmental benefits SpaceNews.
Funding Milestones and Financial Backing
Stoke's rapid ascent is fueled by aggressive fundraising, culminating in a total of nearly $1 billion in equity and debt. The journey began with a $100 million Series B round in October 2023, setting the stage for expanded development. This was followed by a $260 million Series C in January 2025 (exact date reported as January 15 in some sources), bringing the total to $480 million at that point SpaceNews.
The real game-changer came on October 8, 2025, with the announcement of a $510 million Series D round led by the US Innovative Technology Fund (USIT), founded by investor Thomas Tull, alongside other undisclosed new and returning backers. Paired with a $100 million debt facility from Silicon Valley Bank, this infusion pushes Stoke's war chest to approximately $990 million SpaceNews. As Stoke announced, this funding will "scale manufacturing of fully reusable rockets" and support operations through the company's first launches Reddit (noting Reddit's lower credibility but corroborating official reports).
This billion-dollar milestone isn't just about cash—it's a vote of confidence from investors betting on Stoke's technical edge. In a crowded field of "second-tier" launchers like Rocket Lab and Relativity Space, Stoke's funding surge reflects surging demand for LEO services amid constellation buildouts. The lack of disclosed valuation adds an air of mystery, but the scale suggests Stoke is valued as a serious contender, potentially rivaling established players in the long term.
Government Contracts and National Security Role
Stoke's credibility soared with selections by the U.S. Space Force for high-stakes programs, signaling trust in its unproven tech for national security missions. On March 27, 2025, Stoke was tapped for the National Security Space Launch (NSSL) Phase 3 Lane 1, joining Rocket Lab in competing against heavyweights like SpaceX, United Launch Alliance (ULA), and Blue Origin for up to $5.6 billion in missions through 2029 SpaceNews. This indefinite-delivery/indefinite-quantity (IDIQ) contract covers at least 30 missions, emphasizing rapid response and assured access.
Additionally, Stoke secured a spot in the Orbital Services Program-4 (OSP-4) alongside Blue Origin, focusing on small-satellite missions with payloads of 400 pounds or greater SpaceNews. These wins validate Stoke's full reusability as a strategic asset, aligning with the Space Force's push for commercial diversification. As a SpaceNews report highlights: "The expansion of competitors reflects the Space Force’s push to enhance assured access to space by leveraging a broader commercial base" SpaceNews.
For the Department of Defense (DoD), Stoke represents a hedge against over-reliance on SpaceX or ULA, especially in contested environments. This diversification is crucial amid global tensions, ensuring resilient launch capabilities. Stoke's involvement also underscores a trend: the evolution of NSSL from sole-source deals to competitive frameworks, fostering innovation and cost savings.
Recent Developments and Technical Progress
Stoke's momentum is evident in its infrastructure and testing strides. The company is developing a launch site at Cape Canaveral, Florida, to complement its Washington base and enable East Coast operations Stoke Space News. Engine testing hit a high note with the first vertical hotfire tests of the Zenith engine, a step toward full vehicle integration SpaceNews. These tests, performed on a vertical stand, demonstrate progress in thrust vectoring and reliability, essential for reusable flight.
The October 2025 Series D announcement ties directly to these efforts, funding scaled manufacturing and first launches—potentially as early as 2026, though no firm date is confirmed. Community discussions on platforms like Reddit echo excitement, with users noting Stoke's full reusability as a "game-changer" Reddit, albeit with the caveat of lower source credibility.
These developments position Stoke in the "Starship era," where SpaceX's fully reusable behemoth sets the bar. Yet Stoke's medium-lift focus offers niche advantages, like flexibility for smaller payloads without the overkill of larger rockets.
Conclusion: A Launchpad for the Space Economy's Next Phase
Stoke Space's journey—from a 2021 startup to a billion-dollar contender with DoD backing—encapsulates the transformative potential of full reusability. By mastering the reusable upper stage, Nova could slash costs and enable on-demand space logistics, paving the way for a $1 trillion-plus economy built on orbital manufacturing, tourism, and defense. The recent funding and contracts aren't mere milestones; they're proof that the U.S. is investing in diverse, resilient access amid geopolitical shifts.
Looking ahead, challenges remain: proving Nova in flight, navigating regulatory hurdles, and competing in a market dominated by giants. Yet if Stoke succeeds, it could democratize space, making it as accessible as global shipping. As the company prepares for its debut launches, the space community watches closely—Stoke isn't just building rockets; it's engineering the future of mobility beyond Earth. For investors, policymakers, and enthusiasts, this is a reminder that the reusability revolution is far from over—it's just getting started.
