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5PACE’s Top 5 is a series of articles that aims to showcase some of the most interesting developments in the space sector and introduce readers to the trends shaping the industry at the time of writing.

The first article in the series focuses on private investment in the space industry during the previous year. Inspired by the Space Economy Report recently published by the European Space Agency, it looks at the biggest winners of 2025 and explores how they plan to use the funds they raised.

Top 5 private investment deals in Europe

Private investment is difficult to assess without comparing it with public spending. Although public space expenditure decreased for the first time in a decade, it still reached €119 billion in 2025. This decline, however, may prove temporary, as funding is expected to increase alongside the sharp rise in defence spending. The trend is being driven by major programmes such as the US Golden Dome (approximately $24 billion allocated to the initiative) and by increases in defence-related spending observed across many countries worldwide [1].

On the other hand, private investment reached an all-time high of €11.7 billion, yet still amounted to only around one-tenth of public spending [1].

While private investment grew globally, Europe followed a different trend. European space companies continued to seek capital to scale their operations. Europe’s more fragmented venture-capital landscape and smaller funding pools continue to limit the availability of large-scale domestic financing. US investors helped fill this gap by participating in some of the continent’s largest deals.

European private investment trend (credit: https://space-economy.esa.int/documents/ESA%20Report%20on%20the%20Space%20Economy%202026%20-%20public_6a54dcb2dc6f2.pdf).
European private investment trend (credit: https://space-economy.esa.int/documents/ESA%20Report%20on%20the%20Space%20Economy%202026%20-%20public_6a54dcb2dc6f2.pdf).

Even though private investment in the European space sector was lower than in the previous year, the two largest European deals of 2025 were still impressive. ICEYE and Isar Aerospace tied for the top spot, each securing €150 million [1]. Where else was private investment flowing in Europe? Below follow the Top 5 deals of the year.

  1. ICEYE - €150 million. The largest European funding round of the year went to Finnish-Polish company ICEYE. The company operates satellites equipped with Synthetic Aperture Radar (SAR), allowing them to observe the Earth's surface during difficult conditions such as clouds or darkness. This capability has become increasingly important for applications ranging from natural-disaster monitoring to defence and intelligence. ICEYE secured €150 million in a Series E round led by American venture capital firm General Catalyst, accompanied by broad European participation. Rather than financing a single new project, the company plans to use the capital to expand its SAR constellation, develop next-generation sensing capabilities, and grow its satellite-based intelligence services [1][2].
  2. ISAR AEROSPACE - €150 million. With a similarly sized funding round is German launch company Isar Aerospace. In June 2025, the company signed an agreement with US-based Eldridge Industries for a €150 million convertible bond. Isar Aerospace is developing Spectrum, a launch vehicle designed to carry small and medium-sized satellites into orbit. The new financing will support the expansion of its launch capabilities and its series-production facilities near Munich. The investment therefore goes beyond the development of another rocket: it also supports Europe's broader effort to establish more independent and commercially competitive access to space [1][3].
  3. AEROSPACELAB - €94 million. Belgian satellite manufacturer Aerospacelab secured the third-largest European deal with an extended €94 million Series B round. A substantial part of the investment is directed towards industrialising satellite manufacturing rather than supporting a single mission. Central to that strategy is the company's Megafactory in Belgium, which is designed to reach a production capacity of up to 500 satellites per year. The funding is also being used to accelerate research and development, increase vertical integration, and prepare Aerospacelab's satellite platforms for growing demand from commercial and institutional constellation operators [1][4].
  4. ENDUROSAT - €90 million. EnduroSat followed with one of the largest funding rounds ever raised by a Bulgarian space company. The company announced a $104 million round in October 2025, equivalent to roughly €90 million in the ESA ranking. Led by Riot Ventures, the round also included GV, Lux Capital, the European Innovation Council Fund, and Shrug Capital. The investment coincided with the opening of EnduroSat's new Space Center in Sofia. The facility is designed to manufacture as many as two 200-500 kg satellites per day, giving the company the capacity to serve increasingly large satellite constellations. The deal therefore reflects a wider trend visible across the European Top 5: investors are not only financing new satellite technologies, but also the factories required to manufacture them at scale [1][5].
  5. CAILABS - €57 million. Closing the European Top 5 is French photonics company Cailabs with a €57 million financing package. Unlike most companies in the ranking, Cailabs does not build launch vehicles or complete satellites. Instead, it develops advanced optical systems, including technologies for high-speed laser communication between spacecraft and ground. The financing combines €37 million from the European Investment Bank with a further €20 million from investors including Definvest, Fonds Innovation Défense, NewSpace Capital, and the European Innovation Council Fund. The capital will support expansion and the further development of Cailabs' laser communication technologies. [1][6]. Such technologies may address the future need of large data transfers between orbital data centres and Earth-based consumers as the topic becomes increasingly popular across the global space market [7].

Although these figures are impressive, none of the European companies raised enough capital to come close to the world’s five largest deals. Even the fifth-largest global deal was far beyond Europe’s top places, raising raising more than twice as much capital as ICEYE or Isar Aerospace.

Top 5 private investment deals in the world

While Europe and Asia both experienced declines in private investment, the United States drove the sector forward with an astonishing 177% increase. This itself was enough to drive the whole sector from €7.3 billion to €11.7 billion.

Global private investment trend (credit: https://space-economy.esa.int/documents/ESA%20Report%20on%20the%20Space%20Economy%202026%20-%20public_6a54dcb2dc6f2.pdf).
Global private investment trend (credit: https://space-economy.esa.int/documents/ESA%20Report%20on%20the%20Space%20Economy%202026%20-%20public_6a54dcb2dc6f2.pdf).

It is therefore hardly surprising that US companies occupy all five places in the global Top 5. Supported by large venture-capital funds, billionaire investors, and an ever-growing domestic market, the US significantly outpaced its international competitors [1]. The list also shows that private investment in the space sector is no longer limited to traditional venture-capital rounds. The year’s largest transactions include billionaire financing, a company acquisition, late-stage venture funding, and stock-market debuts.

  1. BLUE ORIGIN - $1 billion. The largest entry is also the least conventional. Blue Origin did not announce a traditional $1 billion funding round in 2025. Instead, ESA's analysis attributes approximately $1 billion in private investment to the company, which has historically been financed largely by its founder, Jeff Bezos [1]. The timing was important for Blue Origin. In January 2025, its New Glenn heavy-lift rocket reached orbit on its first flight, marking a major milestone after years of development. With New Glenn entering operations alongside projects including lunar landers and orbital infrastructure, Bezos continues to finance one of the most ambitious attempts to build a broad competitor to SpaceX [8].
  2. RELATIVITY SPACE - $800 million. For Relativity Space, the 2025 deal represented much more than another funding round. Former Google CEO Eric Schmidt acquired a controlling stake in the rocket company in March and became its new chief executive, with ESA reporting nearly $800 million in associated funding [1][9]. After discontinuing the Terran 1 programme, the investment gives Relativity additional resources to continue the development of Terran R, its next-generation launch vehicle. Schmidt's arrival therefore provides both new capital and new leadership at a critical point in the company's development.
  3. FIREFLY AEROSPACE - $800 million. Firefly Aerospace entered the public markets in August 2025 following one of the most important years in the company's history. In March, its Blue Ghost Mission 1 successfully landed on the Moon while carrying NASA science and technology payloads, giving Firefly a major technical achievement shortly before its stock-market debut [10]. Five months later, Firefly priced its initial public offering at $45 per share, offering more than 19 million shares and raising roughly $800 million according to the ESA report’s estimate. The IPO gave public investors exposure to a company operating across launch vehicles, lunar landers, and spacecraft, while providing Firefly with capital to strengthen its balance sheet and support further growth [1][11].
  4. STOKE SPACE TECHNOLOGIES - $510 million. Stoke Space raised $510 million in a Series D round in September 2025, led by the US Innovative Technology Fund. The company is developing Nova, a medium-lift rocket designed around the full and rapid reusability of both stages. The funding will accelerate product development and manufacturing expansion as Stoke works towards bringing the vehicle into operation. The investment also came during a year in which Stoke was selected to participate in the US Space Force's National Security Space Launch programme, increasingly linking its commercial ambitions with the rapidly growing US defence-space market [1][12].
  5. VOYAGER TECHNOLOGIES - $400 million. Voyager Technologies closed the global Top 5 after entering the New York Stock Exchange in June 2025. The company priced its IPO at $31 per share and ultimately generated approximately $402 million in net proceeds after the underwriters exercised their full option to purchase additional shares. Unlike the launch-focused companies that dominate much of the global ranking, Voyager operates across a broader portfolio of space and defence technologies. The company plans to use the proceeds for strategic growth, research and development, capital investment, and potentially future acquisitions. Its successful listing also provides another sign that public markets are once again becoming an important source of capital for the growing commercial space sector [1][13].

The trends are being strongly shaped by the United States, and with ambitious programmes underway and continued global uncertainty, this direction appears likely to continue throughout 2026. What the final results for this year will look like remains uncertain. However, $8.0 billion had already been invested in Q1, followed by another $7.5 billion in Q2, with the largest individual deals reaching as much as $600 million [14].

References

  1. European Space Agency (ESA), "ESA 2026 Space Economy Report," 2026. https://www.esa.int/About_Us/Business_with_ESA/ESA_releases_2026_Space_Economy_Report
  2. ICEYE, "ICEYE and General Catalyst Partner to Redefine Space-Based Intelligence in Europe," December 2025. https://www.iceye.com/newsroom/press-releases/iceye-and-general-catalyst-partner-to-redefine-space-based-intelligence-in-europe
  3. Isar Aerospace, "Isar Aerospace Signs Agreement with Eldridge Industries for EUR 150m Financing," June 2025. https://isaraerospace.com/press/isar-aerospace-signs-agreement-with-eldridge-industries-for-eur-150m-financing
  4. Aerospacelab, "Aerospacelab Secures 94 Million EUR (110 Million USD) to Accelerate Its Ambitious Roadmap," August 2025. https://www.aerospacelab.com/blog/press-releases-1/aerospacelab-secures-94-million-eur-110-million-usd-to-accelerate-its-ambitious-roadmap-35
  5. EnduroSat, "EnduroSat to Scale Satellite Production with New Funding and Space Center," October 2025. https://www.endurosat.com/news/endurosat-secures-104-million-to-scale-espa-class-satellite-production/
  6. Cailabs, "Cailabs Secures €57 Million to Accelerate Growth and Industrial Scale-Up," September 2025. https://www.cailabs.com/news/aerospace-and-defense/cailabs-secures-e57-million-to-accelerate-growth-and-industrial-scale-up/
  7. 5PACE, "The Dawn of 5th Space Era." https://fivepace.com/articles/the-dawn-of-5th-space-era
  8. Blue Origin, "Blue Origin's New Glenn Reaches Orbit," January 2025. https://www.blueorigin.com/news/new-glenn-ng-1-mission
  9. M. Zeff, "Eric Schmidt Joins Relativity Space as CEO," TechCrunch, March 2025. https://techcrunch.com/2025/03/10/eric-schmidt-joins-relativity-space-as-ceo/
  10. National Aeronautics and Space Administration (NASA), "Touchdown! Carrying NASA Science, Firefly's Blue Ghost Lands on Moon," March 2025. https://www.nasa.gov/news-release/touchdown-carrying-nasa-science-fireflys-blue-ghost-lands-on-moon/
  11. Firefly Aerospace, "Firefly Aerospace Announces Pricing of Upsized Initial Public Offering," August 2025. https://fireflyspace.com/news/firefly-aerospace-announces-pricing-of-upsized-initial-public-offering/
  12. Stoke Space, "Stoke Raises $510 Million to Scale Manufacturing of Fully Reusable Nova Launch Vehicle," October 2025. https://www.stokespace.com/stoke-space-technologies-raises-510-million-to-scale-manufacturing-of-fully-reusable-nova-launch-vehicle/
  13. Voyager Technologies, "Voyager Announces Closing of Initial Public Offering," June 2025. https://investors.voyagertechnologies.com/news/news-details/2025/Voyager-Announces-Closing-of-Initial-Public-Offering/default.aspx
  14. Seraphim Space, "SpaceTech Investment Tracker," 2026. https://seraphim.vc/seraphim-spacetech-investment-tracker/
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Maksym Małek

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Computer Vision | Space Systems

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