Spacelab Raises Seed Funding from Bluepoint Partners for Low-Toxicity Satellite Thrusters

Space propulsion startup Spacelab secured Seed funding from Bluepoint Partners.

The exact investment amount and valuation were not disclosed.

Founded in 2023, Spacelab develops satellite propulsion systems using low-toxicity propellants and electrically controlled thrust technology. The company aims to deliver propulsion solutions applicable to diverse space missions, including attitude control, orbital maneuvering, post-mission deorbiting, rendezvous and docking, and on-orbit refueling.

As the number of low-Earth orbit satellites surges, demand for collision-avoidance maneuvers grows each year. In September 2024, the U.S. Federal Communications Commission mandated that newly licensed LEO satellites be deorbited within five years of mission completion. The European Union is also advancing debris-mitigation regulations, and hydrazine—the industry-standard propellant—faces mounting regulatory pressure due to toxicity concerns, driving demand for low-toxicity propulsion alternatives.

Spacelab’s core technology uses electric signals to control ignition, extinction, re-ignition, and combustion of propellants. Unlike conventional solid propellants, the system enables active control of combustion and thrust according to mission conditions, and integrates low-toxicity, high-safety propellants that reduce risks in production, storage, and handling. The company is developing next-generation satellite propulsion systems that combine the high thrust of chemical propulsion with the operational flexibility of electric control.

Spacelab is building a propulsion-system lineup tailored to orbital missions, including electrically controlled solid thrusters, electric-ignition monopropellant thrusters, and self-pressurizing premixed thrusters. The company has established in-house research, development, and testing capabilities covering propellant synthesis and analysis, thruster design and fabrication, combustion testing, and vacuum-environment thrust testing.

The new funds will be concentrated on developing an electrically controlled thruster for a satellite payload aboard the sixth Nuri rocket launch and on validating the system in the space environment. By verifying performance in an actual orbital setting, Spacelab plans to gather data on thruster ignition, operation, and proximity maneuvers, and to use those results as a key reference for product commercialization targeting domestic and international satellite manufacturers and operators.

“A propulsion method that simultaneously satisfies high thrust, precision control, and low toxicity has been an unmet need,” said Donghoon Kang, investment manager at Bluepoint Partners. “Spacelab’s propulsion technology has significant potential to expand into orbital maneuvering and on-orbit servicing.”

Taegyu Kim, CEO of Spacelab, stated, “With this investment, we will focus on developing the electrically controlled thruster for the sixth Nuri launch and validating it in space. By proving our technology and performance in actual orbit, we will secure space heritage and grow into a space propulsion solutions company that supports satellite orbital maneuvering, life extension, and ultimately on-orbit servicing.”

The global small-satellite-propulsion market is projected to reach USD 1.4 billion by 2030, driven by the expansion of mega-constellations and the rise of on-orbit servicing missions. South Korea’s space industry is also accelerating, with local companies advancing satellite buses, payloads, and ground-station technologies alongside propulsion systems.