WASHINGTON — The U.S. military is investing in reusable reentry capsules designed by space startups to return cargo from space and deliver it to precise locations on Earth. These vehicles are seen as key tools for future space operations and logistics, as the Pentagon explores new methods to streamline transportation in space.

Startups specializing in reentry vehicle technology, such as Inversion Space and Outpost Space, recently secured more than $100 million in defense and private investments under the Strategic Funding Increase (STRATFI) initiative. This program, aimed at assisting small businesses in transitioning from development to full-scale production, combines up to $15 million in Small Business Innovation Research (SBIR) investment with matching funds from government agencies and private sources, bringing the potential total to $60 million.

Some STRATFI contracts exceed the $60 million threshold. Inversion Space, based in California, disclosed that its agreement is valued at $71 million, which will support the development of autonomous reentry vehicles and demonstration missions tailored to military customers. 

“Autonomous reentry vehicles that can be called to Earth on demand will transform logistics and provide rapid access to even the most remote parts of the globe,” said Justin Fiaschetti, chief executive of Inversion Space.

Drop cargo on demand

The company says its reusable capsules would store supplies in orbit, ready to be deployed on-demand for rapid, precise delivery of critical cargo, such as medical supplies, battlefield equipment, and surveillance drones.

Outpost Space, another California-based startup, secured a $33.2 million STRATFI contract to develop reusable reentry vehicles designed for the return of payloads, scientific samples, and small satellites from orbit. The company’s focus is on reentry systems that can be used for hypersonic testing, where safely returning payloads without burning up during reentry is crucial for assessing material performance in extreme conditions.

​​The military’s interest in reentry capsule technology is closely tied to the Air Force’s ambitious Rocket Cargo program, which is investigating how to use space launch vehicles to transport supplies or other cargo across vast distances on Earth. Reusable reentry capsules are a cornerstone of this effort, enabling the delivery of supplies through controlled de-orbiting and descent from space using parachutes or other mechanisms for precise drops. 

Sandra Erwin writes about military space programs, policy, technology and the industry that supports this sector. She has covered the military, the Pentagon, Congress and the defense industry for nearly two decades as editor of NDIA’s National Defense...