European space technology investment needs a new perspective
European space technology investment needs a new perspective
Publish Date: 2026-03-08 16:34:00
Source Domain: www.digitaljournal.com
The International Space Station will be guided back to Earth in 2030, marking the end of its three-decade mission – Copyright AFP/File Chanakarn Laosarakham
Market data suggests ‘SpaceTech’ investment has rebounded strongly. However, there is a disproportion among the leading centres. Europe remains behind the U.S. and China as funding within the European Union remains fragmented and concentrated in early-stage rounds.
Digital Journal has heard from Daiva Rakauskaitė, a woman in venture capital with over 30 years of experience. She currently operates Aneli Capital. Rakauskaitė explains what Europe needs to do to narrow the gap, including accelerating capital deployment and strengthening growth-stage funding. She also looks at the SpaceTech areas which look most attractive for Central and Eastern European start-ups.
Opportunities for European start-ups in the space sector
Growing defence spending, Europe’s push for greater strategic resilience amid shifting U.S. policy, and increasing demand for commercial space applications are creating new opportunities for European start-ups. However, European companies still face many challenges, including funding, that could further increase the gap between Europe and the U.S. and China, Rakauskaitė observes.
Last year, space technology startups raised $12.4 billion in venture capital funding, 48% more than in 2024. This is according to estimates by Seraphim Space. The total surpassed the 2021 peak of $10.9bn and marked a full recovery from the previous pullback.
The lion’s share of last year’s investments, 60%, were raised by the U.S. companies, which increased overall funding by 130% year over year. Meanwhile, funding in Europe grew by 25%, primarily driven by increased defence spending and renewed focus on resilience, but the deal count fell by 15%.
Lagging behind
The latest McKinsey space report notes that in recent years, the European space sector has lagged behind the U.S. and…
