European space technology start-ups have experienced a significant surge in funding as the continent aims to close the gap with the United States in the rapidly evolving space sector. This follows growing concern among European industry leaders about reliance on American companies, particularly SpaceX, and the need for increased independent capacity in satellite manufacturing and space-based services.
On Monday, Open Cosmos, a British satellite company, announced it had secured 300 million euros (approximately $346 million) in a new funding round led by the London-based venture capital firm Lightrock and EFT Partners. Additional investors included Spain’s Institut Català de Finances, the start-up accelerator Entrepreneurs First, and two international pension funds. This investment builds on a $450 million funding round raised earlier this year by The Exploration Company, a European firm competing directly with SpaceX in reusable rocket technology.
According to data from PitchBook, global investment in space technology start-ups has reached more than $16.5 billion in 2026, poised to nearly double the previous year’s total. The pace of funding growth for European space ventures is even more pronounced, signaling increased investor interest in the region’s industry.
Founded 11 years ago, Open Cosmos will use the new capital to expand its satellite manufacturing capabilities and develop its satellite data services, including a push into orbital connectivity, which involves providing high-speed satellite broadband and internet-of-things (IoT) connectivity. The company’s valuation now stands around $2 billion, based on information from sources familiar with the financing.
Open Cosmos operates in a highly competitive segment of the space market, relying on commercial launch providers such as SpaceX to deploy its satellites into low Earth orbit. The firm sells Earth observation data to governments and commercial clients, helping users monitor climate-related emergencies. Rafael Jorda Siquier, the company’s founder and CEO, emphasized that climate change has become a crucial business driver. In 2025, Open Cosmos secured contracts worth roughly $175 million, offering early warning services for floods, wildfires, and other environmental disasters.
For instance, the company’s satellite data played a critical role in responses to the floods in Valencia, Spain, and wildfires in Greece last year. Open Cosmos aims to reduce the time needed to deliver such data from hours to minutes, leveraging artificial intelligence to accelerate in-orbit data processing.
Despite advances, the availability of rocket launches remains a major bottleneck. Open Cosmos partners with launch providers in India, Japan, and the United States to secure payload slots, as scheduling delays can significantly impact satellite deployment timelines.
Investors view space infrastructure as increasingly vital for high-speed communications and data processing needs. Ashish Puri, a Lightrock partner, noted that although SpaceX opened the market to new applications, a growing number of start-ups are now seeking to capitalize on these opportunities. As Europe intensifies its efforts, this wave of investment marks a notable shift toward greater independence and innovation in the region’s space technology sector.