ESPI’s Space Venture 2025 provides a global reference for understanding space investment dynamics, combining comprehensive quantitative data with regional insights. Focused primarily on venture‑backed companies while also covering other deal types, the report aims to support evidence‑based policymaking and maximise the impact of public investment in Europe’s space ecosystem, in line with EU and national space strategies.
A central theme of this year’s report is the need to balance economic security considerations with openness to foreign investment. As Europe’s space and defence industries continue to reconverge, companies addressing security and defence markets accounted for 30% of total investment in European space ventures in both 2024 and 2025. Over the past two years, 84% of investors participating in European funding rounds were based in Europe, although the composition of lead investors in larger scaleup rounds varied, with public entities and non‑European private investors playing a notable role. In parallel, acquisitions—often involving non‑European buyers—remained a significant exit route for European space companies, reflecting current market structures and the comparatively limited use of public market listings for space ventures in Europe.
In focus:
Global investment in space ventures reached €11.7 billion in 2025, a 60% YoY increase.
Venture capital remained the backbone of the market, accounting for €8.3 billion (71%) of total investment, while exits staged a notable comeback, with €1.2 billion in IPOs and €1.4 billion in acquisitions. The United States once again captured the lion’s share, securing nearly €8 billion, while upstream segments, particularly launch ventures (€4.7 billion) and satellite manufacturing (€3.1 billion), reached record funding levels.
Europe’s space ventures attracted €1.4 billion in 2025, a 8% decline year‑on‑year.
Venture capital, Europe’s primary funding driver, grew by 13% to €1.2 billion, underscoring sustained investor appetite for European space scaleups. Investment concentrated strongly at the top: the five largest rounds represented €629 million, led by ICEYE. Germany emerged as the leading destination for investment, followed by Finland, France, Bulgaria, and the UK.
Beyond Europe and the US, regional dynamics highlighted diverging trajectories. China recorded a sharp acceleration in funding for launch companies, driven by demand linked to planned NGSO constellations and rising support from provincial and city governments. Africa saw a subdued year, with just two companies raising a combined €16.4 million, reflecting a broader VC market cooldown. In Japan, the average funding round size increased as public support began materialising through the Space Strategy Fund, signalling longer‑term state commitment to the sector.
At a time when speed and scale are driving the US and Chinese ecosystems, scale-up funding in Europe is still lagging. This dynamic needs to be reversed if Europe aims to build the next generation of globally competitive companies. – João Falcão Serra, ESPI lead on Industry and Finance.
