Increasing Investor Interest in Europe's Space Sector Spurred by Shifting Geopolitical Winds
Increasing defense budgets and geopolitical shifts are creating new investment opportunities for Europe’s space industry, according to early-stage investors at the 2025 Satellite Conference and Exhibition in Washington, D.C.
The investors highlighted similarities between Europe’s evolving space industry and the sector's development in the United States, where investments have led to significant exits that Europe has not yet experienced.
Alpine Space Ventures founding partner Bulent Altan noted during a March 12 conference panel that defense investments could foster a commercial space boom in Europe. He mentioned that it was previously difficult to find such parallels, but European investment now shows an increase in defense spending. Altan, a former SpaceX executive with investments in U.S. and European companies, spoke following European Commission President Ursula von der Leyen’s announcement of the ReArm Europe Plan, an 800 billion euro ($872 billion) initiative aimed at enhancing defense and resilience as the U.S. reassesses its global security role.
Programs like IRIS², Europe’s $10 billion-plus multi-orbit broadband initiative, signal a move towards incorporating commercial space into defense efforts — a ‘dual-use’ strategy that aligns with the U.S. government's approach to space.
Altan remarked that the U.S. looks for duality in company revenue projections, including both commercial and government sources, something that was not previously considered in Europe. However, this perspective has now changed, and early investments are likely to yield returns as Europe reinvents its defense capabilities.
Filip Kocian, an investor with Expansion Ventures, shared this optimistic outlook, identifying increased defense spending and a comprehensive approach to procurement as critical factors driving Europe’s space industry momentum. He emphasized that improved funding and strategic initiatives could attract more engineers and entrepreneurs to Europe.
Nonetheless, Kocian cautioned that Europe remains about seven years away from achieving the large-scale investment returns seen in the U.S.