The European space sector is experiencing a paradox. On the one hand, FOMO takes hold of minds with each breakthrough by an American NewSpace actor. On the other, the cold reality of the figures: the European financial system has not yet taken off.
A year ago, my plan for Wheere was clear: raise 40 million euros to change scale. Driven by our first business successes and the promises of sovereignty in political discourse, we aimed for 40 million euros to scale up.
Twelve months later, the reality is quite different. What was supposed to be a launching pad turned into a “bridge”. Enough to continue swimming… but not yet to fly away.
Meanwhile, our American competitor Xona Space Systems had just raised $170 million. On the one hand, collective reluctance, on the other, the striking force of a superpower. It’s not just about money. It is the story of two worlds: one which manages its risk, and the other which finances its destiny.
Is space the deeptech of ten years ago?
Remember 2014. Back then, Deeptech was scary. We didn’t understand these companies which asked for millions before even having a finished product. It took a decade to structure funds, educate investors and finally see our first industrial unicorns emerge.
Today, SpaceTech is exactly in this zone of turbulence. The global market is exploding, the sovereignty issues are glaring, but the maturity of our financiers is lagging behind.
Space companies are asked to justify short-term KPIs, in a sector where long-term strategic vision is the key to success.
The verdict of the figures is clear: between 2022 and 2024, European VCs accounted for only 16% of global investments in the space sector. The United States: 52%. China: 20%. Even on our own continent, France is dragging its feet with $630 million invested since 2020, when the United Kingdom exceeds 2 billion and Germany exceeds 1 billion.
Look for the mistake: we have the engineers, we have the ideas, but we do not yet have the checkbook that goes with the ambition.
The “Series B wall” and the withdrawal syndrome
The observation is bitter: out of the 50 European nuggets of New Space with high potential, how many will actually break through the financing barrier? In France, we will probably only manage to raise to the top 3 or 4 champions capable of raising the 100 million euros necessary to change scale.
Space is scary. During our roadshow, a large Deeptech fund even suggested that we abandon orbit and concentrate on terrestrial antennas, “old school telco” style. This is a historical misreading.
Space is not a luxury, it is a radical lever for scalability. Look at Starlink: could they have covered every square meter of the globe by planting pylons? Never. The cost ratio has shifted: today, deploying Wheere technology across the entire planet would cost 130 million euros. For comparison, covering France alone with 5G required 11 billion euros. Space is no longer the problem, it is the solution.
The medtech example: when finance learns patience
Although the challenge seems immense, we have already taken it up elsewhere. Look at MedTech. Twenty years ago, marketing a new drug or surgical technology was madness: 10 years of research, 100 million euros in financing needs, and no income for ages.
However, we have managed to create an exceptional ecosystem. For what ? Because we have structured specialized funds, capable of understanding the science behind the business and accepting 10-year cycles. Result: France has become a powerhouse of medical innovation, and investors are benefiting from it.
Space needs this same maturity. Structuring dedicated funds, capable of anticipating the long term without waiting for a hypothetical awakening of generalist venture capital: this is the only way to transform our startups into industrial pillars.
The urgency of awakening
We cannot talk about “European sovereignty” on Monday and refuse to finance our critical infrastructure on Tuesday. VC investment in SpaceTech in Europe increased from $2.4 billion in 2021 to $1.4 billion today. This decline is incomprehensible at the very moment when technological dependence is becoming a geopolitical weapon.
It is becoming urgent for Europe to change its paradigm. We do not build a space power with the prudence of a saver who invests his A savings account.
Innovation does not die from its failures, but from our lack of financial audacity.
