The European Space Policy Institute (ESPI) has released its latest Space Venture Report – Space Venture 2024: Global Investment Dynamics, providing insights into the evolution of private investment in the space sector.
An annual publication released by ESPI since 2019, the report aims to help policymakers optimise public funds to attract more private capital for broader societal and economic benefits.
It offers a global overview of space investment dynamics, with regional insights, and covers both venture-backed companies and other deal types.
Here are the key takeaways from this year’s edition:
1. Europe and China Narrow the Gap, U.S. no Longer Accounts for Majority of Global Investment
While the U.S. has traditionally led global space funding dynamics, accounting for 85% of total investment in 2021, its global share has decreased in recent years. In 2024, the total global investment in NewSpace companies reached €6.9 billion, a 6% YoY increase. But for the first time since 2019, the U.S. represents less than half of it, raising only €2.9 billion, representing -3% CAGR.
Meanwhile, Europe and China set record highs, raising €1.5 billion and €1.9 billion, respectively, together accounting for 50% of global investment. Since 2019, Europe has grown at a steady 4% CAGR, while China has surged with a 42% CAGR, driven by large satcom financing rounds in 2024.
2. European Space Ventures Soar in 2024, Driven by Record Investment and Growing Security Focus
In 2024, European NewSpace companies attracted €1.5 billion, representing the largest single-year increase (56% YoY) since 2014. Notably, the relative weight of investment in space ventures with explicit security business lines reached an all-time high of 40%. One such example is the NATO Innovation Fund, which has invested in 3 European space ventures in 2024.
In 2024, the largest transaction was Safran’s €220 million acquisition of Preligens, a company that develops AI algorithms for analysing satellite imagery, primarily for military use. This deal not only highlights the intersection of space and defence but also underscores the growing emphasis on strategic autonomy. Although Preligens had considered offers from U.S. buyers, the French economy ministry intervened, stating that non-EU bids would be blocked due to the company’s national interest status.
Even without the defence rally, Europe was already experiencing an upward trend. Indeed, since 2014, ESPI has recorded €9.8 billion across 631 transactions, with a 40% CAGR. Nevertheless, security is now playing an increasingly important role in Europe’s space venture ecosystem, driving investment and, even more critically, creating demand for services and products. Moreover, the Trump administration’s review of the U.S. foreign policy led Europe to rethink its reliance on its strategic autonomy calculus. Therefore, the unfolding year is expected to at the very least continue, if not accelerate, this trend.
3. Public Support Continues to be Instrumental in both Europe and the U.S.
The public sector plays a key role in funding the space sector, though its involvement varies by region. In Europe, public institutions are more likely to directly invest in space companies, either alongside private investors or independently. By contrast, in the U.S., most space sector investment comes from private investors. Indeed, the resulting funding landscape shows a stark contrast: in 2024, nearly 80% of capital raised by European space companies came from public or mixed (public and private) investor consortia, while in the U.S. over 80% of funding was provided exclusively by private investors.
Moreover, in the past three years, the ratio of private investment and public space budgets has decreased in the U.S. and increased in Europe, reaching 4% and 9%, respectively, in 2024, revealing distinct dynamics. In the U.S., investment has declined while the space budget continued to grow. In Europe, by contrast, space budgets have risen marginally, while investment has surged.
This highlights two different public support strategies for scaling the space sector through private markets. In the U.S., public support functions primarily as a market guarantee through substantial, recurring procurement contracts (enabled by large space budgets, in 2024, the U.S. space budget was estimated at €73.6 billion, 4.8 times larger than Europe’s) generating revenues for these companies, which in turn attract investors. In Europe, public actors often also operate as co-investors, directly funding or anchoring private capital rounds, hence the higher proportion of public and mixed investor consortia.
