The Exploration Company, a Franco-German startup building reusable space capsules, is in advanced talks for a funding round that would value the company at roughly $2 billion post-money. Bessemer Venture Partners and Atomico are negotiating to co-lead the round, which is expected to raise approximately $254 million.
The deal would mark one of Europe's largest space-tech rounds this year and position the Munich-headquartered company alongside a handful of private space ventures commanding multi-billion-dollar valuations.
What we know about the round
The company has previously raised around $550 million in total funding. This round would push cumulative investment past $800 million and give The Exploration Company firepower to accelerate development of its Nyx capsule system, designed for orbital and suborbital cargo transport.
Existing backers include Heartcore Capital, Plural Platform, Balderton, and the European Innovation Council's venture arm. The EIC's European Space Fund, backed by EIF, has been competing to participate in the round alongside the new lead investors.
Founded in 2021 by CEO Hélène Huby, the company has built its thesis around reusable capsule technology that can return payloads to Earth. It secured a €770 million contract in late 2023 and announced headquarters in the US with a facility set up in Brownsville, Texas, signaling ambitions beyond the European market.
Why Bessemer and Atomico are betting on space now
European space investment has lagged behind the US, where SpaceX dominates launch and Rocket Lab has carved out a significant niche. But recent movement in European defense spending and a push for sovereign launch capability have created tailwinds for homegrown players.
Atomico has been building exposure to capital-intensive deep tech, while Bessemer has a long history in space through investments in Rocket Lab and Planet Labs. Their joint lead suggests conviction that The Exploration Company can compete globally, not just serve European institutional customers.
The timing aligns with broader European government efforts to reduce reliance on US launch providers. French and German space agencies have signaled interest in supporting reusable capsule development for science missions and satellite servicing.
The competitive picture
The Exploration Company's funding trail mirrors other European deep-tech raises. Isar Aerospace, another German space startup, raised €165 million last year. Swedish satellite company Ovzon closed a €2 billion deal earlier this year. The company is part of a cohort trying to prove that Europe can build space infrastructure at scale.
In the US, Sierra Space is developing the Dream Chaser spaceplane for cargo missions. The Exploration Company's Nyx capsule targets a different form factor but competes for similar commercial and government contracts.
Another European deep-tech company seeking a $2bn valuation in the same funding cycle
Logicity's Take
A $2 billion valuation for a pre-revenue space capsule company is aggressive, but Bessemer and Atomico are not writing checks on vibes alone. The real signal here is that major VCs now see a path to returns in European space beyond government grants. For founders in adjacent hardware sectors, watch whether this round closes at the reported terms. If it does, it raises the ceiling for what European deep-tech startups can command.
What happens next
The round is not yet closed. Terms could shift, and the final investor syndicate may include additional participants from the EIC or sovereign funds. If the deal lands near the reported $2 billion mark, The Exploration Company will become one of Europe's most valuable private space companies.
The next milestone to watch: whether Nyx reaches orbit on schedule. Hardware startups at this valuation live or die by technical execution, and investors will want proof that the capsule can perform before any talk of a follow-on round.
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Source: Sifted
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
