Lockheed Martin backs X-Bow Systems with $35 million in $105 million funding round
X-Bow (pronounced crossbow), a firm based in Albuquerque, New Mexico, specializes in the critical area of solid rocket propulsion and the development of small launch vehicles. After the closing of the Series B, announced May 12, X-Bow Systems has secured an additional $35 million in Series B funding, bringing the total for the round to a substantial $105 million, as reported on SpaceNews.
This latest influx of capital was led by one of the defense giants, Lockheed Martin, marking not just financial investment but also the beginning of a strategic partnership between the two companies. These components are increasingly vital for a wide array of U.S. missile systems, particularly advanced technologies like hypersonic weapons. With the new capital coming in, X-Bow plans to use it for the significant expansion of the company's production capabilities and the completion of its cutting-edge 'energetics campus', currently under construction outside Austin, Texas.
This move comes three years after Lockheed Martin attempted to acquire Aerojet Rocketdyne, which was blocked by the Federal Trade Commission over antitrust concerns. A statement released by X-Bow stated, “X-Bow and Lockheed Martin have entered into a strategic agreement allowing Lockheed Martin to accelerate X-Bow as a new independent supplier of solid rocket motors and other services for their existing and future programs.”
With big players in the solid rocket motors market, like Northrop Grumman and L3Harris, X-Bow aims to establish itself as a viable alternative. The Pentagon has long voiced the issues of the consolidation of this sector, which has led to reduced competition and potential vulnerabilities in the defense supply chain. X-Bow was founded in 2016, and it distinguished itself through its proprietary 3D printing methodology for both manufacturing rocket motors and propellant formulations.
On this, Jason Hundley, the chief executive officer and founder of X-Bow Systems, said in a statement, "We have built a highly respected 'deep hardware technology' company with the current Series A and B investments from our venture partners." He added, "This additional investment and our ongoing partnership with Lockheed Martin position us for significant growth. We are expanding our production capacity, accelerating our innovation efforts, and strengthening our role as a critical independent supplier within the defense industrial base."
Lastly, Chris Moran, the vice president and general manager of Lockheed Martin Ventures, shared in a statement released by the company, "We are pleased to continue our investment in X-Bow Systems, a company developing SRM technology that aligns with our strategy to support innovative solutions that enhance our nation's security. Our follow-on investment in X-Bow Systems underscores Lockheed Martin's dedication to advancing the aerospace and defense industry."
The Series B round also saw participation from a diverse group of investors, including Razor’s Edge Ventures, Crosslink Capital, Balerion Space Ventures, Boeing Ventures, Bravo Victor Venture Capital, Upsher Management Company, Capital Factory Ventures, Arkenstone Capital, and Event Horizon Capital. This direct investment from Lockheed Martin, rather than its venture capital arm, signals an urgency within the defense sector. This strategic alignment between Lockheed Martin and X-Bow could reshape the landscape of the solid rocket motor industry.
