European space start-ups have attracted significant investment recently as the continent seeks to bolster its position in the global space technology sector and reduce dependence on U.S. companies such as SpaceX. This shift comes amid concerns that Europe was falling behind the United States both in scientific advances and financial backing for space ventures.
On Monday, British satellite manufacturer Open Cosmos announced it had secured €300 million (approximately $346 million) from predominantly European investors. The funding round was led by London-based venture capital firm Lightrock and ETF Partners, with additional support from Spain’s Institut Català de Finances, the start-up accelerator Entrepreneurs First, and two international pension funds. This latest investment follows a $450 million financing round by The Exploration Company, a European start-up developing reusable rockets and competing directly with SpaceX.
According to data from PitchBook, investors have committed more than $16.5 billion globally to space technology start-ups so far in 2024, on a trajectory to nearly double the previous year’s figures. Notably, European space-focused companies are experiencing an even faster pace of funding growth.
Open Cosmos, founded 11 years ago, has now raised over $390 million in total capital, valuing the company at roughly $2 billion according to sources familiar with the deal. The company designs satellites and provides Earth-observation data to governments and businesses. While it currently relies on third-party launch providers—including SpaceX—for sending its satellites into orbit, Open Cosmos is expanding its services to include orbital connectivity, offering high-speed satellite broadband and Internet of Things (IoT) solutions, directly competing with established companies like SpaceX.
Founder and CEO Rafel Jorda Siquier highlighted the role of climate change as a key driver for the company’s growth. In 2023, Open Cosmos generated around $175 million from contracts focused on delivering early alerts for natural disasters such as floods and wildfires. The company’s satellites rapidly transmitted critical data to officials during events including the 2024 floods in Valencia, Spain, and wildfires in Greece the previous year. Open Cosmos aims to reduce data delivery times from hours to minutes by integrating artificial intelligence to process information onboard its satellites.
Despite growing demand, launch availability remains a core challenge. Satellite manufacturers depend heavily on private launch providers like SpaceX, Blue Origin, and various government agencies, with delays in launch schedules potentially postponing satellite deployments by months. Open Cosmos is pursuing agreements with launch operators in India, Japan, and the U.S. to secure timely access to space.
Investors view space infrastructure as an increasingly vital component of global high-speed data networks and processing capabilities. Ashish Puri, a partner at Lightrock, described SpaceX as a "critical layer of infrastructure" that has enabled new applications, while acknowledging that a fresh wave of European start-ups aims to capitalize on these emerging opportunities within the space economy.