A European competitor to Elon Musk’s SpaceX is being supported by France and Germany because EU policymakers are afraid of falling behind in the space race.
A $160 million (£127 million) investment in The Exploration Company (TEC), a Franco-German start-up creating a capsule that can transport people and goods to space stations, includes funds supported by the two states.
It’s the biggest fundraising round ever for a European space corporation that wants to establish itself as a force to be reckoned with in the US, Russia, and China.
TEC asserts that its Nyx capsule will outperform competitors like SpaceX’s Dragon capsule, which transports humans to and from the International Space Station.
1. @pluralplatform is co-leading, with @balderton, the €150m Series B in The Exploration Company. It is the largest Series B in a European space startup to date, at the measure of one of the largest commercial opportunities of this century and the urgency for Europe to maintain… pic.twitter.com/86fBRxaBIT
— Khaled Helioui (@KHelioui) November 18, 2024
Prior to a trip to the ISS, the reusable capsule is scheduled to make its first voyage the following year.
With reusable rockets that have significantly reduced launch costs, SpaceX, founded by Elon Musk, has revived the US space sector, and European nations are vying to catch up.
European firms like OneWeb, which is partially controlled by the British government, have been forced to rely on SpaceX for launches, while French rocket manufacturer Arianespace has been forced to postpone the launch of its new Ariane 6 rocket.
TEC, which was established in 2021 by former executives of Airbus and Arianespace, will launch from any major rocket, although it will also rely on SpaceX rockets for its inaugural launch.
It claims that flights utilising its capsules—which would splash down in the ocean upon returning from Earth—will cost up to half as much as those utilising competitors’ capsules, including SpaceX’s Dragon.
The London-based venture capital firms Plural and Balderton have spearheaded the investment round. Additional investors include Germany’s DeepTech and Climate Fonds (DTCF) and France’s Tech Souveraineté, a government-run fund.
“The lack of European situational awareness in space is costing us,” Plural investor Khaled Helioui said on X. Leaders in industry and policymakers are aware that we need our own space capabilities.
“To defend our critical orbital assets, we need to be able to launch our own tech to monitor and protect our systems, rather than relying on other countries.”
Hélène Huby, TEC’s chief executive, said: “This significant raise is a reflection of not only the talent and commitment of the team at TEC but also that building global companies with European roots can only be done through fostering trust and cooperation between European countries.”
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