Authors: Elena Vrabie and Bogdan Iordache

Europe is at a pivotal moment in its space journey. In 2024, the continent captured €78 billion of the €408 billion global downstream market, driven by services like Earth observation (EO), communications, and navigation. Despite these strengths, it still lacks full launch autonomy, deep growth capital, and the commercial maturity to turn R&D into global leadership. After what Justyna Redelkiewicz calls “a total revolution in space” over the past 15 years, the region now faces its next test: scaling. She argues the next five years are more critical than the last fifteen. 

Justyna Redelkiewicz is one of Europe’s space voices, having spent 15 years at the European Union Agency for the Space Program (EUSPA), where she led the €1B Cassini initiative, supporting over 200 startups annually, and shaping Europe’s downstream innovation strategy. With more than two decades of experience spanning public institutions, multinational corporations, and frontier technology startups, she recently transitioned into entrepreneurship as CEO and founder of GoCosmic and serves as Senior Partner for Space at 3 Hazel Tree Partners. 

In this interview, Justyna Redelkiewicz brings a rare combination of policy insight, commercial experience, and technological depth to reflect on how Europe’s space sector has transformed from an early-stage, fragmented landscape into a fast-growing ecosystem with global ambition. She explains the challenges of scaling up European space tech businesses, the growing influence of defense, and the urgent need to rebalance upstream investment with downstream demand. Justyna highlights the emerging technologies poised to reshape the industry and outlines what it truly takes for European space startups to cross the bridge from R&D to commercial success.

Underline Ventures: Europe’s space ecosystem has been growing under the radar over the past decade, with startups emerging alongside traditional players and increasing interest in EO, AI, and debris removal. You’ve been in the space tech sector for more than 15 years. How has the European ecosystem changed during that time?

Justyna Redelkiewicz: In one sentence, the last 15 years have been a total revolution in space. Back then, Central and Eastern European countries were just joining the European Space Agency (ESA). There was some initial funding available, but not much technical expertise, and honestly, not much willingness to engage in space.

If we compare it with today, the growth has been exponential. Europe’s focus, investments, and overall impact in space have increased enormously.

When I joined the sector in 2010, I worked on navigation, focusing on the Global Navigation Satellite System (GNSS). In Central and Eastern Europe, when we first organized workshops with Member States to encourage them to develop solutions, there were literally almost no participants. The sector was still in its infancy, especially compared to France, Italy, or Spain.

In 2013, I helped develop the first European regulatory framework that shaped relationships between space agencies and national organizations. The change between the EU’s 2013–2020 and 2021–2027 budgets is huge. Just in this latest perspective, €16 billion was invested in space R&D. That’s a real success story for Europe.

On the EU Space Program side, the main achievements were bringing Galileo (navigation) to full operation, scaling Copernicus (Earth observation), and launching IRIS² (satcom). On the startup side, we’ve also seen a boom. Over 600 companies have been co-funded through the Cassini initiative, and ESA’s database now lists more than 3,000 entries.

Europe also created the Cassini Growth Fund with the EIF to help investors understand the opportunities in the space sector. As a result, 18 venture capital funds have now emerged in Europe focusing on space, deep tech, and defence.

And you can really see the results: just in the last few weeks, we’ve seen major funding rounds: U-Space in France (€24M), ReOrbit in Finland (€45M), Reflex Aerospace in Germany (€50M), and EnduroSat in Bulgaria (over €100M). A few years ago, this level of early-stage funding was unthinkable.

If we look at the story of Rafał Modrzewski, the co-founder of ICEYE, we see how quickly he had to search for funding overseas, in the US. Now, another Finnish company, ReOrbit, has just raised €45M in a Series A round. That shows the big change that happened in Europe.

UV: Where do you see Europe’s space ecosystem heading in the next five years, especially with rising defence budgets and stronger government interest?

JD: We are now entering a phase of consolidation and scale-up. Europe has many promising startups that have moved from pre-seed and seed to Series A, and now they are facing the challenge of growing into real, scalable businesses.

Running a startup is very different from managing a scale-up. Once you move from R&D to production, you need suppliers, tools, and software that can support your internal processes. This is where many European companies still need to build capacity.

Another major trend is the development of ground systems and launchers, because Europe still lags in these areas. Getting things into orbit, performing rendezvous, and working in orbit; those are key parts of the value chain, and we still don’t have full autonomy there.

We also need to talk about the balance between upstream and downstream. Around 80% of the global space market comes from downstream services — data, applications, analytics — but most investments still go into the upstream side, like satellites and rockets. This mismatch will soon force consolidation as companies start offering large-scale services without enough market demand.

And of course, dual-use and defence will become one of the main growth drivers. It’s not there yet, but it will soon generate the largest share of revenue.

Finally, I’d like to see a shift from the old “pay-per-image” model toward “pay-per-service.” Just like telecoms evolved from paying per minute to paying for connectivity, space data should move to subscription models. Platforms like UP42 are already bundling services from different providers, but we are only at the beginning.

Right now, it’s the best possible time to invest and work in space. The market is growing fast, and the potential is huge.

UV: Which emerging technologies do you believe will have the most transformative impact on Europe’s space ecosystem in the coming years? In a recent interview, you mentioned quantum computing for cleaning satellite datasets of clouds.

JR: The most transformative impact will actually come from launch systems and ground infrastructure, even though they are not always seen as “emerging technologies.” Europe is finally developing spaceports and ground networks across the continent – this will completely change our operational independence.

Then there’s AI, which is now being used for simulation, testing, and reducing development costs. It helps companies shorten design cycles and better predict how systems behave in orbit.

I also see rapid progress in in-orbit servicing technologies. For example, capture and docking systems. I am an angel investor in ArcSpace, which develops a welding-based capture system as an alternative to robotic arms. It’s fascinating to see these new technical approaches emerging.

Another important area is cybersecurity — both for satellites in orbit and ground systems. We are seeing early experiments with blockchain to verify data integrity and alternative architectures that move beyond traditional approaches.

Looking ahead, space-based data centers could also become a reality. This could bring computing to space and fundamentally change how we handle satellite data.

And yes, quantum is very promising, although still a long-term play. It could transform EO data processing, post-quantum cryptography, and quantum communications. Interestingly, space already provides the perfect low-temperature environment for quantum systems, which might accelerate their development. But again, this is something we’ll see mature over the next decade.

UV: After your impressive tenure at EUSPA, where you led initiatives like the €1B Cassini program, you founded GoCosmic and became Senior Partner for Space at 3HT Partners. From your experience, what are the key ingredients for scaling a space tech venture in Europe — from funding and regulation to securing early customers?

JR: Through GoCosmic, I work with startups on market entry and fundraising strategies. I see the same three problems repeating across Europe.

First, the transition from R&D to market is hard. Writing grants and tender proposals is one thing, but selling products is another. Many companies try to extend their R&D phase because they’re comfortable with it; they know how to win grants, but not how to sell. In the long term, this becomes a trap. There’s no future in developing technology endlessly without putting it on the market.

Second, teams are often 90–100% technical. That’s understandable in space, where development takes years, but you also need people who can sell — who can translate complex technology into a simple value proposition for customers. It sounds obvious, but I meet companies every week that still struggle with this.

And third, the move from startup to scale-up is another critical point. Once you reach that level, you need processes, compliance, and reliable supply chains. You can’t improvise anymore. You need systems in place to minimize risk and deliver consistent quality.

That’s why I tell founders: treat sales and operations with the same level of focus as technology. It’s the only way to grow sustainably.

UV: How important is marketing in supporting sales for space tech startups?

JR: At the very early stage, startups don’t need heavy marketing, but it’s just as important as sales once they begin to scale. The difference is that in space, marketing works differently because 70% of the market is still government-driven.

So instead of traditional B2C visibility — flashy logos or social media ads — it’s more about B2B and B2G relationships: trust, credibility, and direct business development. It’s about having the right conversations with the right people.

Of course, at some point, you also need good branding and visuals — a proper website, presentations, and materials — because they support credibility. But what really drives success in this sector is business development: talking to 100 people to get one customer.

This is something many founders underestimate. They come from an R&D background, used to working with institutions like ESA or the European Commission. But when you start selling commercially, the game changes. You need persistence, follow-ups, and a pipeline mindset.

UV: Europe’s space ecosystem is often described as fragmented, with many national programs, different regulations, and funding gaps. There are also missing elements like launch capacity, large-scale funding, and consistent commercial success. What challenges does this fragmentation create for startups?

JR: Actually, fragmentation has both challenges and advantages.

Let’s start with the good side. It’s now much easier to enter the sector than ever before. There are amazing support programs in almost every European country, both at the national and EU levels. You just need some commitment and curiosity to find them. It’s also easier than ever to get your first pre-seed ticket or small innovation grant. That’s a big advantage for early-stage founders.

The other advantage is that space is international by nature. From the start, you have to think globally. If you build a space startup in one country, your next step will automatically be to look toward Europe or beyond. This broadens your perspective and opens doors.

The main challenge, however, is continuity of growth. After a few years, when startups reach Series A or Series B, many struggle to find investors who can fund the next stage. This is the “missing middle” in Europe — we have a lot of early-stage support, but not enough growth capital. That’s why many companies end up raising in the US.

Another challenge is the lack of large-scale champions. Europe has great new players, but the traditional primes have become too slow and ineffective. They can’t compete with the agility of new entrants in the long term if they don’t change their approach.

UV: There’s a lot of discussion about Europe’s sovereignty in space — whether it should aim for full independence or continue to rely on international collaboration. What’s your view?

JR: We need balance. Total isolation is not the answer. Europe has always succeeded through collaboration. That’s what made programs like Galileo and Copernicus successful.

Right now, geopolitical tensions are pushing everyone toward nationalization, but this trend has limits. If we start funding only “French,” “Polish,” or “Italian” startups, we’ll lose the very collaboration that made us strong. You can grow a company nationally to a certain point, but at some stage, to truly succeed, you need global partners.

What we need is shared infrastructure, shared vision, and shared funding mechanisms. Europe should remain open while strengthening its own capabilities. That’s the key to sustainable sovereignty.

UV: For investors entering the European space sector, what should they look for when deciding where to invest?

JR: First, there are great programs already in place, like Cassini, which helps investors to assess and invest in space companies. There are matchmaking events every month with curated deal flow, and the Cassini Growth Fund provides leverage: for every million invested in space, investors can get additional matching capital from the EIF.

Then there’s EBAN, the European Business Angel Network, which has a dedicated Space & Defence chapter. It’s a great entry point for new investors who want to learn and connect with experienced peers.

Another thing I encourage is syndicate investing, especially between sector-specific investors. For example, climate tech or fintech investors can team up with space-focused ones. That mix of expertise is valuable because it connects the space industry with its real end users.

Investors shouldn’t be afraid of hardware, either. Yes, it has longer development cycles, but there are early exit opportunities now. Some angels have already exited at Series A with good returns.

And finally, we need to start discussing exit strategies in Europe. Too many funds are still at the beginning of their life cycle. But we need to involve private equity early on, so that by the time startups mature, the path to exit is already prepared.

UV: Which sectors do you think offer the most immediate opportunities for European startups to achieve global leadership?

JR: I see the biggest opportunity in the downstream sector, especially in data applications. Many startups are already developing EO-based solutions, but a gap remains between geospatial companies and real users, particularly in industries such as banking, insurance, and infrastructure.

Large organizations often don’t know how to use satellite data or where to start. They need someone to translate it into actionable intelligence to show what can be done and how it supports business decisions. That’s where European startups can step in and take the lead.

Another high-potential area is dual-use technology, especially drone-based solutions for defence and civil applications. I also see growth in in-orbit servicing, space traffic management, and debris mitigation — all critical for protecting Low Earth Orbit and reducing operational costs.

A less obvious but equally important domain is the intersection of IT, AI, and cybersecurity. There are enormous opportunities there that we’re only beginning to explore. These technologies will define how we protect data, optimize operations, and ensure the resilience of our space systems.

One example I’m proud of is a collaboration I launched with a technical university in Kraków called “In Three Weeks to Space.” It’s a set of professional courses that help IT specialists transition into space data analysts and cybersecurity experts for the space industry. It shows how easily skills from other tech sectors can be adapted to space. And how much untapped talent is out there.

So, in short, the biggest opportunities for European startups lie not only in building rockets or satellites but in connecting space with Earth by creating real, scalable applications that bring space data into everyday business.