Muon Space Secures $90 Million for Satellite Production Expansion

On June 12, 2025, Muon Space, a burgeoning player in the small satellite industry, announced its successful acquisition of $89.5 million in funding aimed at scaling its satellite production capabilities and acquiring propulsion startup Starlight Engines. This funding round, which brings Muon's total Series B funding to $146 million, is critical as the company seeks to bolster its production capacity and mitigate potential supply chain bottlenecks.

Founded in 2021 and based in Mountain View, California, Muon Space specializes in the development and deployment of small satellites weighing between 100-500 kilograms. The newly acquired capital will support the establishment of a 12,000-square-meter production facility in San Jose, California, with the capacity to manufacture up to 500 satellites annually. According to CEO Jonny Dyer, this expansion is driven by clear demand signals from both commercial and governmental sectors, with expectations to meet the demand for around 100 satellites per year by 2027.

In recent years, Muon has successfully launched several satellites, including MuSat-1 in 2023 and MuSat-2 in 2024, the latter supporting Department of Defense weather programs. The company’s third satellite, launched in March 2025, serves as a prototype for FireSat, a low Earth orbit wildfire-monitoring system developed in collaboration with Earth Fire Alliance and supported by Google Research. Additionally, Muon is set to deploy various other satellite systems for customers including the National Reconnaissance Office and Space Force, reflecting its rapid growth and expanding client base.

The acquisition of Starlight Engines, which specializes in solid-propellant Hall-effect thrusters, is particularly strategic for Muon. By integrating Starlight's propulsion technology, Muon aims to enhance its Halo satellite platform, addressing persistent challenges related to propulsion costs and supply chain vulnerabilities. Paul Day, Muon's Vice President of Spacecraft Production, noted that this integration would expedite delivery timelines and improve mission performance. Currently, four Starlight thrusters have been delivered to customers, with the first satellite equipped with this technology expected to launch in 2026.

The recent funding round was led by Congruent Ventures and included participation from existing investors such as Activate Capital and Acme Capital, alongside new investor ArcTern Ventures. This influx of capital is expected to position Muon Space as a key player capable of producing hundreds of satellites annually and offering rapid build-to-launch timelines. As the company continues to grow, it aims to reinforce its presence in a competitive market, responding to the increasing demand for satellite services across various sectors.