X-Bow Systems, an aerospace company based in Albuquerque that's developing rocket motor and propellant technologies, landed a chunk of money from a mix of sources to help test and mature its tech.
The company announced last week that it received a STRATFI, or strategic funding increase, award for $60 million through a blend of venture capital, government funding and research money. That award is part of a program through AFWERX, a technology directorate of the Air Force Research Laboratory, that's aimed at boosting innovative technologies.
"It's extremely helpful for us because we're moving out of the demonstration phase and now trying to go actually compete with billion-dollar companies on multi-year procurements," Jason Hundley, X-Bow's CEO, said about the funding award.
The money comes from a dual-use award program that matches every $1 in government funding with $1 in Small Business Innovation Research program money and $2 in private investment, said Maureen Gannon, chief revenue officer for X-Bow Systems. She said X-Bow's piece of private investment in the $60 million total award comes from a $27 million round of funding that the company announced in April 2022.
"It's the government's effort of bringing private venture money alongside their big investments in technology," Gannon said.
X-Bow makes modular solid rocket motors and additively manufactured solid rocket propellant, according to its website. Its competitors include two companies that dominate the current rocket motor market — Northrop Grumman Corp. and Aerojet Rocketdyne.
Hundley said the award acts as a "mini-qualification program" so potential customers can better understand the company's technology.
"For us, it's definitely a confirmation that this is a hugely needed and valid technology approach, especially in this marketplace," he said. "The national security need for increased supply and through-put in solid rocket motors is a huge issue today.
"My only wish was that other parties were throwing as much, if not more, funding in this area so that we could accelerate getting our capabilities online sooner," Hundley added.
While he said X-Bow is currently discussing how it'll use its award money with the U.S. government since the money was awarded under a government contract, he said the "big themes will be vetting and maturing our process through lots of builds and tests type of activities."
Those activities could include more rocket testing out of New Mexico's White Sands Missile Range, where X-Bow has previously run tests of its "Bolt Rocket" system. Hundley said the company is currently scheduled to launch out of White Sands in early June and again in the fourth quarter.
"We feel like we're going to have a pretty good slate of launches out of New Mexico over the next few years," he said. "That will help us set up what we really need from a manufacturing and a long-term footprint here."
Although X-Bow handles its testing in New Mexico, its most recent physical expansion has been outside of the state. The company announced plans in February to stand up a $25 million manufacturing and testing facility near Austin, Texas, with manufacturing expected to start there by the end of the year.
But Hundley told Business First in February that New Mexico could be "top of the list" for duplicating the type of manufacturing and testing campus that X-Bow is building in Texas.
