As a serial entrepreneur with a deep background in education and technology, I’ve been closely watching Europe’s growing commitment to the space sector. What strikes me isn’t just the headline news of billions in funding but the implications for startups attempting to enter this arena. Space may seem like a sector made for titans, but 2025 is proving that smaller, nimble players are starting to make their mark. With national ambitions growing and international competition becoming fierce, the stakes for entrepreneurs in the space economy have never been higher. Here’s what you need to know about Europe’s space investments and opportunities for startups.
Billions in Space Funding: Breaking It Down
European countries, through initiatives primarily led by the European Space Agency (ESA), have agreed to invest €22.1 billion over the next three years. The increase, up 30% from the budget in 2023, signals a doubling down on elevating Europe’s standing in space. According to ESA Director General Josef Aschbacher, this is the first time member states have fully met the agency’s budget request. The investment spans satellite launches, spaceport upgrades, Earth observation, and even military-focused projects.
Here’s where the money is going:
- €4.4 billion: Satellite transportation, including launches and next-generation space vehicles.
- €3.5 billion: Earth observation programs, which are not only critical for climate monitoring but also widely used by startups for downstream applications.
- €900 million: Private rocket companies and startups showing promise in space technology and services.
While these figures are impressive, it’s also essential to consider how much of this funding is realistically accessible for startups, not just established giants like Airbus or Thales. And that’s where things get interesting.
Startups Are Getting a Slice of the Pie
Space was once dominated by a handful of legacy players. Now, the rise of startups is creating ripples across the sector. For instance, European spacetech startups like Iceye (Finland), Isar Aerospace (Germany), and Infinite Orbits (France) have shown that small companies can carve out niches in both commercial and government markets.
- Iceye, which specializes in synthetic aperture radar satellites, has proven that startups can even become indispensable in high-conflict scenarios like the war in Ukraine. Their ability to deliver real-time imagery has won them collaborations with both government and private sectors.
- Isar Aerospace, one of Europe’s leading rocket startups, has leveraged funding from ESA programs like Boost! to validate its technology and secure deals with commercial customers.
- France-based Infinite Orbits won a €50 million military contract for its space situational awareness solutions, proving that government contracts are not just for long-established corporations anymore.
Overall, about 35% of ESA-related funding flows to startups, particularly those with technologies in dual-use (civil and defense) domains or satellite data exploitation.
How Startups Can Access Space Funding
Navigating public funding in space is not easy, but it’s possible with the right approach. Here’s how startups can increase their chances of winning government contracts or securing grants:
- Research Calls for Proposals: Almost every agency releases open calls for contracts or grants. For instance, ESA’s “Boost!” program specifically targets early-stage rocket and satellite projects. Regularly check for announcements on national space agency websites or ESA’s tenders portal.
- Develop Dual-Use Applications: Dual-use technologies, those serving both civilian and defense purposes, are increasingly being prioritized. Although governments may want to separate these realms in theory, the reality is they often overlap due to demand. Position your technology to serve both markets.
- Collaborate with Established Players: Being part of a consortium led by larger companies can improve your access to funding and expertise. Many prime contractors have startup outreach initiatives.
- Secure Venture Capital First: Government funds are often considered non-dilutive capital. But VCs specializing in space, such as Seraphim Space and Promus Ventures, offer capital that can get your company to the stage where these government contracts make sense.
Common Mistakes to Avoid
While the opportunities in space sound appealing, it’s important not to fall into these traps:
- Underestimating Technical Readiness: Many startups miss out on funding because their technology isn't far enough along the readiness scale. Governments rarely fund pure R&D startups without a path to a working prototype.
- Over-reliance on Public Funding: While ESA and national programs provide funding, they do so sparingly. A diversified revenue stream, including private sector partnerships, increases financial stability.
- Ignoring Procurement Standards: Government contracts are full of compliance standards. Skipping over these or failing to meet requirements quickly disqualifies applicants.
- Failing to Build Credibility: As unexciting as they may seem, certifications, ISO standards, and partnerships with universities or established players buy credibility with government agencies.
Why Now Is the Time for Space Startups
The geopolitical landscape is fueling space investments globally. The competition with the U.S. (dominated by SpaceX) and China’s rise as a space superpower has put pressure on Europe to secure its position. Having its own commercial satellites, launch capabilities, and Earth observation technologies is no longer optional, it's a necessity.
This urgency is why governments are open to betting on startups that offer disruptive technologies and agile approaches. Many of today’s larger players, including SpaceX, Rocket Lab, and Planet Labs, were startups less than two decades ago. Governments now recognize the missed opportunities of not betting on innovative, smaller companies from the start. Europe is unlikely to repeat that mistake.
Conclusion: Grabbing the Opportunity
For startups like mine, this moment is an open door into one of the world’s most prestigious and lucrative industries. But don’t mistake it for a free pass. Entering the European space sector takes patience, a commitment to technical excellence, and a deep understanding of government priorities.
If you think your startup might align with Europe’s space goals, now is the time to take the first step. Look into upcoming ESA programs, systematize your compliance processes, and build partnerships with established players. The opportunities are there, you just need to reach for them.
Founders, the European space race is calling. Are you ready to answer?
FAQ
1. How much are European nations investing in space between 2025-2028?
European nations have pledged €22.1 billion for the European Space Agency's budget over the next three years, marking a 30% increase from previous funding levels. Read more about ESA’s budget
2. What portion of ESA funding is likely to go to startups?
Approximately 35% of ESA-related funding flows to startups, particularly those with dual-use technologies or satellite data applications.
3. Which European startups have secured significant space-related contracts?
Startups like Iceye (Finland), Isar Aerospace (Germany), and Infinite Orbits (France) have landed major government and commercial contracts. For example, Infinite Orbits secured a €50 million military contract for space situational awareness. Learn more about Infinite Orbits
4. How can space startups access ESA or national funding programs?
Startups can apply through open calls like ESA’s Boost! program, develop dual-use technologies, collaborate with established primes, or secure venture capital to enhance their eligibility for contracts. Explore ESA’s Boost! program
5. What are typical mistakes startups made when entering the space sector?
Common pitfalls include underestimating technical readiness, over-relying on public funding, ignoring procurement standards, and failing to build credibility through certifications or partnerships.
6. What trends are driving space investments globally?
Geopolitical pressures, the competition with the U.S. and China, and the need for European autonomy in satellite and launch capabilities are key drivers for increased space investments. Discover Europe’s space strategy impact
7. What is the role of dual-use technologies for startups?
Dual-use technologies, which cater to both civilian and defense purposes, are increasingly prioritized by European governments for funding and partnerships. Learn about spacetech pivoting to defense
8. Which startup funding programs support spacetech SMEs in Europe?
Programs like the European Investment Bank’s Space TechEU initiative provide €500 million financing to help SMEs and mid-caps overcome funding challenges. Explore Space TechEU program
9. How has venture capital evolved to support spacetech startups?
VCs like Seraphim Space and Promus Ventures specialize in space investments, with mainstream funds increasingly joining the sector as risk profiles improve. Check out Seraphim Space
10. Why is now a pivotal time for European startups in spacetech?
With record funding, government procurement reform, and a global race for space dominance, Europe is actively supporting innovative startups to compete with global leaders like SpaceX. Read about the European space startup revolution
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.