Vector Space Systems will specialize in launching microsatellites.

Two founders of SpaceX have created a rocket startup which will specialize in putting microsatellites into orbit.

Vector Space Systems has announced $1 million in angel investment to build launch vehicle systems specifically designed to put microsatellites into orbit.

It is currently developing its first rocket – the Vector. Upon its completion, Vector will have the capability to carry a cargo in the range of 11 to 110 pounds at a potential cost of $2 million to $3 million per rocket. The economics of the launch make it ideal for placing microsatellites into orbit with their weight ranging from 20 to 200 pounds.

In comparison, the cost of the Falcon 9 launch, is a whopping $60 million. If successful, the Vector will provide a far cheaper solution to deploy microsatellites in orbit.

Virgin Galactic plans to use its WhiteKnight airplane lifter to deploy the Vector into orbit, while Google co-invested $1 billion in SpaceX to deploy its own microsatellites.

Although the Vector has significant developments ahead along with testing before Vector Space Systems allows its prototype rockets to fly at a height of 100,000 feet without any issue, the company plans on taking baby steps: it will first demonstrate a flight of its rocket this summer and if successful an orbital flight will follow through by 2018.