Sierra Space Corp. has secured $550 million in new funding, bringing its valuation to $8 billion as it pursues expansion in the defense and national security sectors. The Colorado-based company, which develops satellites and spacecraft, plans to use the capital to expand production capacity and enhance its capabilities for US government contracts.

LuminArx Capital Management led the funding round, with participation from existing investors including General Atlantic, Coatue, and Moore Strategic Ventures. The company, backed by Turkish billionaire couple Fatih and Eren Ozmen, originated as a spinoff from defense contractor Sierra Nevada Corp. The funding comes as Sierra Space navigates leadership changes and works to overcome delays with its flagship Dream Chaser spaceplane.

The company has faced setbacks with its Dream Chaser program, which was originally slated for a 2021 debut but is now targeting late 2026 for its first launch. Sierra Space is also developing an inflatable space station intended as a commercial successor to the International Space Station, which is scheduled to de-orbit in 2030.