ESA grows private investment in Europe’s space sector

On 29 January, at the European Space Conference in Brussels, Belgium, investors and companies will discuss in several sessions how to accelerate Europe’s space ecosystem, focusing on opportunities and challenges in the investment journey. One of ESA’s ambitions is to boost the commercialisation of space for a green and digital Europe, opening space to new players including non-space-based companies, in a global space economy projected to exceed US $1 trillion by 2040.

To facilitate funding, ESA’s Ventures and Financing Office set up the ESA Investor Network which now has over 60 members representing 80% of ESA Member States, mainly commercial banks and Corporate Venture Capital alongside traditional Venture Capitalists. This broad network aims to offer both equity and debt financing options for companies at their growth stages. In 2024, the members of ESA Investor Network invested about €1 billion representing about 86% of the total private investment in space ecosystem (not yet consolidated data), driving innovation and growth in the European space ecosystem.

ESA serves as a facilitator, bridging the gap between space companies and potential investors by reducing entry barriers. It organises tailored discussions to assist investors with strategic, market, and technical due diligence. Additionally, ESA supports companies in their pursuit of private funding (via this link) by promoting their fundraising efforts through monthly newsletters. Lastly, the ESA Ventures and Financing Office offers guidance to ESA programmes requiring co-funding, helping them connect with appropriate investors.

Dr. Gianluigi Baldesi, Head of ESA Ventures and Financing Office: “The ESA Investor Network is vital to Europe’s space ecosystem, providing the financial foundation for innovation and growth. By connecting companies with the right investors, it ensures a steady flow of private investment into the ecosystem, enabling companies to thrive and flourish.”

In addition to the ESA Investor Network is ESA’s ScaleUp programme. It offers two elements to help a company along its entire life cycle. First, it assists in the development of the enterprise with business incubation, business acceleration, intellectual property and technology transfer services (ScaleUp Innovate), it then facilitates the scaling up of their products in new markets (ScaleUp Invest).

In ScaleUp Innovate, ESA has built the largest network in Europe of Business Incubation Centres (BIC) to guide and support the growth and market readiness of about 200 new space-based startups each year. Improving access to funding and providing opportunities for these entrepreneurs to create partnerships grows the space economy. It also increases Europe’s technological knowhow and competitiveness. In 2023, over 60% of space private investment was raised by European startups involved in space infrastructure. This year is the 20-year anniversary of the ESA BIC network.

ScaleUp Invest is for established companies seeking to scale up their operations. It offers an ESA marketplace which accelerates business-to-business transactions to achieve sustainable commercial growth faster than ever before. The ESA Marketplace is designed to facilitate collaboration and promote business development across the space sector which in the last 15 years has shifted focus from exploration to bringing concrete socio-economic benefits. Space is a fundamental component of day-to-day life. It influences sectors as diverse as energy, agriculture, and finance.

In 2022, the ESA Council Meeting at Ministerial Level in Paris allocated €25 million to support activities within ESA’s Marketplace. In its first year of operation, the ESA Marketplace facilitated the launch of over 11 contracts in 2023, representing €13 million in ESA co-funding. This effort generated an estimated €24 million in industry deal flow. Additionally, the Marketplace has supported private fundraising, with more than 25% of participating economic operators successfully completing fundraising rounds thanks to ESA’s assistance.

Luca Del Monte, Head of ESA’s Commercialisation Services Department sees the ESA Marketplace evolving: “ESA is engaging with the commercial space sector in the New Space context in three main roles: enabler, partner and customer. In collaboration with European partners and national space agencies, ESA aspires to position Europe as a hub for space commercialisation, nurturing global space companies aligned with future goals.”