El Segundo-based aerospace startup Phase Four Inc. has raised $26 million in Series B funding to support development and mass production of its propulsion engines for satellites, the company announced June 11.

The round was led by New York-based venture capital firm New Science Ventures. Since the first satellites using Phase Four’s Maxwell engines launched in January, the company has gained commercial and government contracts, including a $750,000 contract with the U.S. Air Force.

"The global space economy has outstanding long-term growth potential,” New Science Ventures Managing Partner Somu Subramaniam said in a statement. “Phase Four has the management team, core technology set and product strategy to build a leadership position in the in-space propulsion sector.”

Maxwell engines are designed for small satellites weighing between 20 and 500 kilograms. The engines are compact, can be produced in around two months and start at $200,000 per unit.

Space News reported that the company plans to triple the production of its Maxwell engines between now and the first half of 2022 using the funding. Phase Four chief executive Beau Jarvis said in a statement that the funding round will also accelerate development of other Maxwell engines, such as an iodine-fueled variant.

"We've seen demand for the Maxwell engine exceed our current production capability," Jarvis said in a statement.

Founded in 2015, Phase Four uses “plasma thruster technology” to create lighter, more cost-effective satellite engines. The company said its engines bring a 75% reduction in lead time, or the time between when an order is placed and when the customer receives a product, according to the company’s website.