A Japanese aerospace startup's launch of a compact rocket failed Sunday morning in Hokkaido due to an engine problem, the company said, marking the latest setback for a project that has suffered a series of delays.

Interstellar Technologies Inc.'s MOMO-5 rocket fell into the sea without reaching space. Ground control shut the engine down 70 seconds after liftoff from the town of Taiki at around 5:15 a.m., it said.

Part of the engine was damaged during the launch and the fuselage could no longer maintain its orientation, the company said. The rocket reached an altitude of about 11 kilometers before falling into waters some 4 km off the launch site.