European Space Start-up The Exploration Company Targets €1.7 Billion Valuation in New Funding Round

European aerospace company The Exploration Company (TEC) is negotiating a new financing round that could raise at least €255 million, valuing the business at more than €1.7 billion, according to sources familiar with the discussions.

If completed, the transaction would rank among the largest fundraising rounds for a European space technology company and reinforce investor appetite for businesses developing strategic space infrastructure.

The discussions remain ongoing, and the final size of the investment and valuation could still change before an agreement is reached.

A European challenger in the commercial space industry

Founded in 2021 by Chief Executive Hélène Huby, TEC has rapidly established itself as one of Europe's most ambitious private space companies.

Its primary objective is to develop reusable spacecraft capable of transporting cargo to low Earth orbit and, eventually, astronauts to future space stations, reducing Europe's dependence on foreign launch providers and expanding its commercial space capabilities.

The company operates across Germany, France, Luxembourg, Spain and Italy, while also maintaining offices in the United States and the United Arab Emirates.

Support from Europe's new scale-up investment initiative

Among the investors reportedly considering participation is the newly created Scaleup Europe Fund, an investment vehicle backed by the European Commission and managed by Swedish investment firm EQT.

The fund was established to provide growth capital to European technology companies operating in strategically important sectors such as artificial intelligence, semiconductors, quantum technologies and advanced industrial innovation.

A potential investment in TEC would align with the European Union's broader objective of strengthening technological sovereignty and fostering globally competitive companies.

Developing reusable spacecraft for the next generation of space missions

TEC is developing the Nyx family of reusable spacecraft, designed to transport cargo to orbit and support future commercial space operations.

The company is also expanding its technological portfolio through the development of Storm, a proprietary rocket engine intended to support future launch capabilities.

Previously, the European Space Agency selected TEC as one of the companies tasked with helping establish commercially viable European transport services to low Earth orbit before the end of the decade.

Investor confidence continues to grow

The company previously secured approximately €136 million in funding during its last financing round in 2024, attracting backing from venture capital firms including Balderton Capital, Bessemer Venture Partners, Cherry Ventures, EQT Ventures, Plural, Partech and Vsquared Ventures.

The latest fundraising reflects increasing investor interest in Europe's commercial space ecosystem, which is attracting greater public and private capital as governments seek to strengthen strategic autonomy in space technologies.

Europe looks to expand its space ambitions

As demand grows for satellite deployment, orbital logistics and future commercial space infrastructure, companies such as TEC are emerging as key players in Europe's effort to build a more competitive aerospace industry.

If the financing is completed, the company will be better positioned to accelerate research, manufacturing and testing while competing in a market currently dominated by major international operators.