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Europe's Spacetech Sector Soars with €150M Isar Aerospace Deal

In a sign of the booming European spacetech industry, German rocket startup Isar Aerospace has secured a €150 million convertible bond financing, one of the largest funding rounds in the sector during the first half of 2025.

The deal underscores the rapid growth of Europe's NewSpace ecosystem, which is now building a full-stack of capabilities from launch vehicles and satellites to ground infrastructure and in-space manufacturing. Across the continent, a new generation of space companies is developing cutting-edge technologies to democratize access to orbit and unlock novel commercial applications.

Isar Aerospace, founded in 2018 and based in Munich, is at the forefront of this trend. The company has developed its own two-stage liquid-fueled rocket, Spectrum, which it plans to use to provide cost-efficient and flexible launch services for small and medium-sized satellites and constellations. With a vertically integrated approach spanning design, manufacturing and launch operations, Isar is aiming to make space more accessible for a wide range of customers.

"This funding will allow us to further scale our launch capabilities and solidify Isar Aerospace's position as a leading provider of sovereign European access to space," said CEO Daniel Metzler. The company says the new capital will be used to bolster its technical roadmap and ramp up production to meet surging demand.

Isar's €150 million raise is the largest of several major deals in the European spacetech sector during the first half of 2025. Bulgaria's EnduroSat, which makes satellite buses and subsystems, secured €63 million, while Swiss in-space transportation startup Momentus raised €45 million for its reusable orbital transfer vehicles.

These investments underscore how Europe is cultivating a diverse ecosystem of space innovators, drawing on the region's deep engineering talent and ambitions to reduce reliance on non-European launch providers. Analysts say the funding rounds also highlight the increasing strategic importance that governments and investors are placing on domestic space capabilities.

"The spacetech sector is seen as crucial for Europe's technological sovereignty and commercial competitiveness," said Tamara Djurickovic, a senior analyst at Tech.eu. "Backers are rallying behind companies that can deliver flexible, cost-effective access to orbit and cutting-edge space applications."

Beyond launch, European startups are making strides in areas like satellite manufacturing, Earth observation, in-space logistics and advanced communications. Industry experts believe the region is poised for further growth as the NewSpace revolution gathers pace worldwide.