Spanish VLEO Startup Kreios Raises €8M Seed Round
Spanish startup Kreios Space recently announced an €8M seed round to support a planned demonstration mission of its air breathing electric propulsion (ABEP) technology in very low Earth orbit (VLEO) in early 2027. The investment was led by the NATO Innovation Fund and JOIN Capital, with additional contributions from Grow Venture Partners, Xesgalicia, and Tasivia Global. This funding brings the company’s total financing to over €10M.
Founded in 2021 by six Spanish aerospace engineers, Kreios is focused on developing and testing its ABEP system, which enables satellites to operate in lower orbits. The ABEP system gathers air from the upper atmosphere—air that would typically create drag- and uses electric power to convert this intake into thrust. In comparison to other propulsion systems that require significant amounts of fuel to overcome drag, ABEP allows for extended missions in VLEO and permits operation at altitudes lower than those accessible to some competitors.
Kreios’ CEO, Adrían Senar, stated that while many companies reference VLEO, not all operate at the lower end of the spectrum; according to Senar, true VLEO is approximately 200 kilometers above Earth. Operating satellites at such low altitudes can facilitate various commercial and defense applications that benefit from close proximity to the planet.
Although Kreios did not disclose the specific use cases for their VLEO satellites, Senar noted potential applications, including telecommunications satellites with faster signal transmission and more precise direct-to-device communication, as well as Earth observation (EO) satellites capable of capturing higher-resolution images and providing real-time data to ground operators.
Kreios anticipates deploying its satellites for both governmental and commercial purposes, partnering with the NATO Innovation Fund to pursue contracts across Europe and presenting the commercial advantages of VLEO to the private sector. Senar explained that the ABEP system enables Kreios to maintain costs comparable to those in LEO while achieving performance improvements of three to sixteen times, depending on the payload. The company’s long-term objective is to establish a leading position in very low Earth orbit operations, supported by its resources, partnerships, and technology.
Europe must participate in the emerging orbital economy, said Tobias Schirmer, Founding Partner at JOIN Capital. Kreios’s technology has strategic significance for Europe - VLEO has long been a research focus and is now ready for real-world application, he added.
“Kreios’ technology represents a decisive leap toward unlocking the next frontier of very low Earth orbit,” said David Ordoñez, Senior Associate at the NATO Innovation Fund. By positioning satellites closer to Earth, Kreios’ approach enables high-resolution imaging and direct-to-device broadband, which are considered important for European security.