Reaction Engines Valuation, Funding & Investors
Reaction Engines is valued at $137M as of November 2015.
Last Reaction Engines valuation
$137M
Undisclosed stage · Nov 2015
Last Reaction Engines funding round
$49M
Undisclosed stage · Jan 2023
Cumulative funding Reaction Engines raised
$118M
across 3 funding rounds
Key investors in Reaction Engines
BAE Systems
Boeing HorizonX Ventures
Strategic Development Fund
About Reaction Engines
Reaction Engines is an Oxfordshire-headquartered aerospace firm developing the SABRE engine for hypersonic flight and space access. The precooled hybrid air-breathing rocket transitions from atmospheric operation at five times the speed of sound to rocket mode for orbital velocities. The company applies its heat exchanger technology to aerospace, energy, and cleantech sectors. Reaction Engines collaborates with partners on the Skylon spaceplane concept following validations by European Space Agency assessments.
Founded
1989
HQ
AberdeenWebsite
Status
Privately held
Customer focus
B2B
Revenue model
Product sales
Valuation
$137M (Nov 2015)
Reaction Engines Valuation
Reaction Engines is currently valued at $137M, based on its undisclosed-stage round in November 2015.
The $31M round was led by BAE Systems.
Reaction Engines valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Nov 2015 | Undisclosed stage | $137M |
Reaction Engines Funding History
Reaction Engines has raised a total of $118M across 3 funding rounds.
Reaction Engines' first fundraising round was a $31M undisclosed-stage round in November 2015. The most recent completed round was a $49M undisclosed-stage round in January 2023.
Reaction Engines funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jan 2023 | Undisclosed stage | Strategic Development Fund (lead) | $49M | - | Reaction Engines, a UK-based developer of hypersonic propulsion technologies including the SABRE air-breathing engine and advanced thermal management systems, raised £40 million in a funding round in 2023 led by the Strategic Development Fund, with prior support from investors like BAE Systems, Boeing, Rolls-Royce, and Tawazun. The company, an Oxford University spin-out founded in 1989, focused on applications in hypersonic transport, space access, and military sectors, including contracts with the US Air Force Research Laboratory and work on zero-emissions hydrogen projects via the UK's Aerospace Technology Institute. Despite these efforts, Reaction Engines remained in the research and development phase, consistently loss-making, and reliant on regular equity injections to fund operations. The firm had opened a US site in Denver to tap American opportunities and collaborated with entities like Cranfield Aerospace Solutions, backed by UK and US governments. The 2023 funding was intended to support ongoing development, but challenging market conditions, delays, and cancellations in key contracts accelerated the need for additional capital in 2024. Efforts to secure further funding through mergers, break-up sales, or equity injections failed, leading to administration on 31 October 2024 by PwC administrators. At that point, the company's total deficiency exceeded £160 million, including over £150 million in now-worthless shareholdings from major investors. Post-administration, £1.7 million in revenue was generated from a third-party contract, with expectations of further payments. Administrators pursued a sales process for Reaction Engines' intellectual property, including patents valued by directors at £848,000, trade secrets, and trademarks, attracting interest from aerospace firms. By mid-2024, a preferred bidder was selected after shortlisting four parties, with negotiations ongoing to realize value from these assets amid a cash crisis. The insolvency highlighted investor caution toward high-risk aerospace ventures, despite the technology's potential in hypersonic and sustainable propulsion markets. |
| Apr 2018 | Series B | BAE Systems (lead); Boeing HorizonX Ventures | $37M | - | Reaction Engines is a UK-based aerospace startup developing advanced propulsion systems, including the SABRE (Synergetic Air-Breathing Rocket Engine) hybrid rocket-jet technology for hypersonic flight and space access vehicles, enabling high-speed point-to-point transport. Founded in 1989 by three propulsion engineers, the company focuses on robust designs for heat exchangers, air-breathing engines, and related vehicles. By 2018, it employed over 100 people and had received more than $100 million in prior investments, including from the British government and BAE Systems, which acquired a 20% stake in 2015. In April 2018, Reaction Engines closed a $37.3 million Series B funding round with participation from Boeing HorizonX Ventures, Rolls-Royce, and BAE Systems as a lead investor. Boeing highlighted the investment as its first in a UK company, emphasizing potential for hypersonic research and space systems synergy. The UK government noted the round as a vote of confidence, following £60 million in prior support, with upcoming testing at Westcott and a new National Space Propulsion Facility. |
| Nov 2015 | Undisclosed stage | BAE Systems (lead) | $31M | $137M | Reaction Engines is an aerospace technology company developing SABRE, a revolutionary hybrid jet and rocket engine for hypersonic space access and high-speed flight, including the Skylon spaceplane concept aimed at reducing satellite launch costs and enabling rapid global travel. In February/November 2015, BAE Systems invested £20.6 million to acquire a 20% stake, providing engineering collaboration to accelerate development of a ground-based demonstrator engine targeted for functionality by 2020. The investment supports emerging sectors like low-cost space launch and high-speed commercial aviation, with BAE highlighting the technology's transformative potential across air travel and space flight. The deal establishes a strategic partnership allowing Reaction Engines to leverage BAE's resources and talent for faster technology advancement. Funds from the stake sale are designated for building the demonstrator engine, which operates in air-breathing mode up to five times the speed of sound before switching to rocket mode using onboard liquid oxygen. This positions Reaction Engines to revolutionize reusable launch systems that takeoff like aircraft, deploy satellites, and return within 48 hours. Subsequent rounds, such as the 2018 £26.5 million raise with Boeing, Rolls-Royce, and others alongside further BAE investment, brought total funding over the prior three years above £100 million, building on UK government support of £60 million. |
Who has invested in Reaction Engines?
3 investors have backed Reaction Engines across its funding rounds, including BAE Systems, Boeing HorizonX Ventures and Strategic Development Fund.
Lead investors include Strategic Development Fund and BAE Systems.
Reaction Engines Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| London | 2 | Lead | Nov 2015 | |
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Start Free TrialReaction Engines Competitors
Reaction Engines competitors include listed companies like Starfighters Space and Sidus Space, and private ones like ICON Aircraft, Constanellis Aerospace, ATMOS Space Cargo and VerdeGo Aero.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
 United States | Private | - | - | $122M | - | |
| Washington, DC | Private | - | - | $160M | - | |
 Baden-Baden | Private | - | - | $116M | - | |
| Daytona Beach, FL | Private | - | - | $165M | - | |
| United States | Publicly listed | - | ($15M) | $102M | - | |
| United States | Publicly listed | $3M | ($25M) | $205M | 11.9x |
Reaction Engines Public Comps
Reaction Engines is still privately-owned, but its public comps include Scanway, ZenaTech, NSE Groupe, Sogeclair, Starfighters Space, AAC Clyde Space, DCX System, Air T, APR Technologies and Odessos Shiprepair Yard.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $6M | $220K | 23.4x | 13.6x | 599.5x | 117.2x | |||
| $9M | ($17M) | 21.3x | 20.9x | (11.8x) | (13.5x) | |||
| $126M | $13M | 1.4x | 1.2x | 12.8x | 9.2x | |||
| $185M | $22M | 0.6x | 0.6x | 4.9x | 5.2x | |||
| - | ($15M) | - | - | (5.1x) | - | |||
| $30M | $967K | 2.4x | 1.7x | 76.1x | 18.3x | |||
| $78M | ($2M) | 1.4x | 1.3x | (53.2x) | (261.1x) | |||
| $327M | $110M | 1.1x | - | 3.1x | - | |||
This data is available for Pro users. Sign up to see all Reaction Engines competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Reaction Engines
| When was Reaction Engines founded? | Reaction Engines was founded in 1989. |
| Where is Reaction Engines headquartered? | Reaction Engines is headquartered in Aberdeen, United Kingdom. |
| Is Reaction Engines publicly listed? | No, Reaction Engines is a private, VC-backed company. |
| What is Reaction Engines' valuation? | Reaction Engines was last valued at $137M in its undisclosed-stage round in November 2015. |
| How much funding has Reaction Engines raised? | Reaction Engines has raised $118M across 3 funding rounds. |
| What was Reaction Engines' last funding round? | Reaction Engines' last funding round was a $49M undisclosed-stage round in January 2023, led by Strategic Development Fund. |
| Who are Reaction Engines' investors? | Reaction Engines' investors include BAE Systems, Strategic Development Fund and Boeing HorizonX Ventures. |
| Which companies are comparable to Reaction Engines? | Companies comparable to Reaction Engines include ICON Aircraft, Constanellis Aerospace, ATMOS Space Cargo, VerdeGo Aero, Starfighters Space and Sidus Space. |
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