Failed spaceflight venture

In the 1990s the projection of a significant demand for communications satellite launches attracted the development of a number of commercial space launch providers. The launch demand largely vanished when some of the largest satellite constellations, such as 288 satellite Teledesic network, were never built. The historic tendency of NASA to compete against the private sector and the Department of Defense's preference for the traditional military industrial complex has discouraged many new space launch ventures.

VentureStar
In 1996 NASA selected Lockheed Martin Skunk Works to build the X-33 VentureStar prototype for a single stage to orbit (SSTO) reusable launch vehicle. In 1999, the subscale X-33 prototype's composite liquid hydrogen fuel tank failed during testing. At project termination on March 31, 2001, NASA had funded $912 million of this wedge shaped spacecraft while Lockheed Martin financed $357 million of it. The VentureStar was to have been a full-scale commercial space transport operated by Lockheed Martin.

Beal Aerospace
In 1997 Beal Aerospace proposed the BA-2, a low-cost heavy-lift commercial launch vehicle. In March 4, 2000, the BA-2 project tested the largest liquid rocket engine built since the Saturn V In October 2000, Beal Aerospace ceased operations citing a decision by NASA and the Department of Defense to commit themselves to the development of the competing government-financed EELV program.

Rotary Rocket
In 1998 Rotary Rocket proposed the Roton, a Single Stage to Orbit (SSTO) piloted Vertical Take-off and Landing (VTOL) space transport. A full scale Roton Atmospheric Test Vehicle flew three times in 1999. After spending tens of millions of dollars in development the Roton failed to secure launch contracts and Rotary Rocket ceased operations in 2001