Stoke Space has raised $1 billion in new funding as it prepares to develop a significantly larger reusable rocket designed to compete in the growing commercial launch market.

The company unveiled plans for a new launch vehicle that will be substantially larger than its current Nova rocket and is intended to carry heavier payloads into orbit.

The funding round gives Stoke the resources to accelerate development, testing, and construction of the infrastructure needed for its next-generation vehicle.

Stoke is pursuing a fully reusable approach, aiming to recover and rapidly reuse both stages of its rockets in order to reduce launch costs and increase flight frequency, Space News has reported.

The investment represents a major expansion for the relatively young company as it seeks to challenge established launch providers and become a significant player in the global space industry.