Space Tech Weekly Recap – July 7–14, 2025
Major funding, new missions, and setbacks: what mattered last week in space innovation.
🔍 At a Glance – Last Week in Space Tech
Latest Space IQ report shows $7.8B Invested in Space Tech in Q2 2025, led by Defense & European Surge
The U.K. teamed up with France to raise €1.5 billion for Eutelsat’s satellite expansion.
Varda raised $187 million to make life-saving medicines in space
Maxar Secures $205M to Boost Sovereign Geospatial Capabilities in Middle East & Africa
Starlink got its license to operate in India, aiming for a massive 300 million users
Pentagon Moves Ahead with Space-Based Surveillance Deals
Japan’s Interstellar Technologies secured a hefty ¥8.9 billion ($61.8M) Series F funding round.
Firefly Aerospace filed for an IPO, planning to trade under “FLY” on Nasdaq.
ESA Reports 6% YoY Jump in European Space Investment
Space BD and Gilmour Space joined forces to improve launch access across Asia-Pacific.
The U.S. Space Force launched its first international strategy to strengthen global space cooperation.
Senate spending talks remain at a standstill
Northwood rolled out a cutting-edge ground terminal, boosting satellite communications infrastructure.
The GAO points out the space industry’s stubbornness about sticking with single-use satellites, despite ready tech for servicing them in orbit.
Here’s a closer look at each story:
$7.8B Invested in Space Tech in Q2 2025, Led by Defense & European Surge
What happened: According to Space IQ by Space Capital, $7.8 billion was invested across 113 space companies in Q2 2025. Investment momentum is holding strong despite valuation resets and tight liquidity, with a surge in activity across European space ventures and defense-linked tech.
Why it matters: Capital is shifting beyond rockets and satellites into off-planet ecosystems, like orbital edge computing, nuclear power, and space-based defense platforms. This diversification signals maturing market dynamics and broadening commercial opportunities across space infrastructure layers.
Investor angle: Defense, dual-use tech, and European-backed ventures are increasingly driving returns. Watch categories like orbital compute, SDA (space domain awareness), and lunar logistics as emerging growth segments attracting serious capital.
U.K. government joins France in €1.5B capital raise for Eutelsat
What happened: The U.K. government acquired a 10.89% stake in satellite operator Eutelsat as part of a combined €1.5 billion (~$1.56 billion) capital raise led by France. The investment strengthens Eutelsat's strategic position, specifically aiding the expansion of OneWeb's LEO broadband constellation, in direct competition with SpaceX’s Starlink.
Why it matters: Eutelsat is rapidly expanding its multi-orbit satellite infrastructure to capitalize on global broadband demand. With over 650 OneWeb satellites already operational and more scheduled, this significant capital influx will lower debt, optimize financing, and enable large-scale infrastructure development in both LEO and GEO satellite services.
Investor angle: The U.K.’s involvement underscores Europe's broader push toward digital sovereignty, secure satellite communications, and competitiveness in the rapidly evolving broadband satellite market. Investors should closely track the competitive landscape in LEO broadband, as government-backed infrastructure plays continue gaining momentum.
Varda Raises $187M to Manufacture Life-Saving Drugs in Space
What happened: Varda Space Industries has closed a $187 million Series C round, bringing its total funding to $329 million. The round was led by Natural Capital and Shrug Capital, with continued support from Peter Thiel’s Founders Fund, Khosla Ventures, Lux Capital, and others. Varda is building space-based pharmaceutical factories using microgravity to develop novel drug formulations impossible to produce on Earth.
Why it matters: Varda is the first private company to conduct pharmaceutical manufacturing outside the ISS, completing three orbital return missions since 2023. Its reentry capsules — traveling at Mach 25 — are also being used to test hypersonic tech for government partners. The company's new 10,000 sq ft El Segundo lab will focus on crystallizing biologics, like monoclonal antibodies, a $210B+ market.
Investor angle: This raise signals rising investor confidence in the orbital bioeconomy. Varda is not just a deep tech bet — it's a platform play at the intersection of biotech, defense, and commercial space. With proven reentry systems and expanding lab infrastructure, it’s building the core capabilities for on-orbit industrialization, with pharmaceutical IP as the near-term wedge.
Maxar Secures $205M to Boost Sovereign Geospatial Capabilities in Middle East & Africa
What happened: Maxar Intelligence has landed three multi-year contracts worth $204.7 million with government partners across the Middle East and Africa (MEA). The deals expand Maxar’s long-standing presence in the region through its Direct Access Program (DAP) — enabling customers to directly task Maxar’s satellites and tap into a suite of high-resolution imagery, 3D terrain data, and AI-powered analytics.
Why it matters: These partnerships are a strategic leap for sovereign C5ISR capabilities in MEA, giving governments real-time, space-based situational awareness and persistent monitoring over critical areas. The agreements include access to Sentry, Maxar’s AI-enabled change detection platform, which flags activity across multiple sites at once — key for mission-critical decisions and advanced threat detection.
Investor angle: Maxar’s move reinforces the rising demand for dual-use space infrastructure in emerging markets. These contracts highlight not only MEA’s growing investment in sovereign satellite capabilities, but also the broader shift toward space-based intelligence as a service — a high-margin, scalable model where Maxar remains a category leader.
Starlink Receives Operating License in India
What happened: On July 9, 2025, India's space regulator IN-SPACe granted Starlink a five-year license to operate its Gen1 low Earth orbit satellite constellation in India—adding to prior telecom ministry approval. The license permits Starlink to deploy internet services across the country, pending spectrum assignment and final security compliance .
Why it matters: India represents a massive target market—with approximately 300 million potential users underserved by terrestrial broadband. Regulatory approval removes the final major hurdle for Starlink to expand its global footprint into a strategically and commercially critical market.
Investor angle: Getting access to the Indian market is a big win for Starlink’s growth plans and revenue outlook. Their partnerships with major players like Reliance and Airtel, plus device distribution deals, set them up to gain customers quickly. That said, keep an eye on when they get their spectrum allocation—how much it costs could have a big impact on how profitable their rollout will be.
Pentagon pursuing space‑based AWACS via commercial contracts
What happened: The Pentagon intends to award firm-fixed-price contracts using mature commercial satellite technologies to field a space‑based “AWACS” capability—offering surveillance and moving-target tracking from orbit. These efforts are part of a broader pivot away from traditional airborne platforms like Boeing’s E‑7 Wedgetail.
Why it matters: Space‑based ISR can offer persistent, wide-area surveillance with survivability advantages over aircraft in contested environments. This signals a shift in DoD’s allocation strategy, potentially accelerating satellite-based ISR and altering procurement dynamics .
Investor angle: Commercial satellite and sensor providers stand to gain from emerging U.S. defense ISR budgets. Investors should watch contract awards under this initiative, as they could mark a significant growth channel for space tech firms building next-gen surveillance constellations.
Japan’s Interstellar Technologies closes ¥8.9 B ($61.8 M) Series F
What happened: Hokkaido-based Interstellar Technologies has secured ¥8.9 billion JPY (~$61.8 million USD) in Series F funding. The round includes ¥6.5 billion in equity from new investors Sumitomo Mitsui Banking Corporation (SMBC), SPARX Asset Management’s Space Frontiers Fund II, Japanet Holdings, and existing backers. An additional ¥2.4 billion in debt financing was also raised.
Why it matters: The new capital will accelerate development of Interstellar’s orbital rocket ZERO and support R&D for its in-house communications satellite platform. The company is building a vertically integrated model that combines launch and satellite services, following a strategy similar to leading global players. It has also signed a business alliance agreement with SMBC to strengthen domestic supply chains for Japan’s growing space industry.
Investor angle: This Series F round brings together top financial institutions, government-backed programs, and industry-aligned investors in a sector where late-stage private funding has been limited. Interstellar’s dual focus on launch and satellite infrastructure—supported by Japan’s Ministry of Internal Affairs and Communications, JAXA’s Space Strategy Fund, and its selection in Phase 3 of the SBIR program—positions it as a key player in Japan’s strategic space ambitions. For investors, this deal offers exposure to a high-barrier, government-aligned, vertically integrated business at a critical point of technical and commercial scale-up.[MP1]
Firefly Aerospace Files for IPO on Nasdaq Under “FLY”
What happened: Firefly Aerospace, a U.S.-based space and defense tech company, filed for an initial public offering with the SEC on July 11, aiming to list on the Nasdaq Global Market under the ticker FLY. The offering will be led by major underwriters including Goldman Sachs, J.P. Morgan, Jefferies, and Wells Fargo.
Why it matters: Firefly has made big strides in rapid-response space missions and lunar capabilities—it's the only commercial company to land on the Moon and to launch a satellite into orbit with just 24 hours' notice. This IPO signals its transition from a well-funded private player to a public growth story amid rising investor interest in defense-aligned space infrastructure.
Investor angle: Firefly’s move taps into growing demand for national security space services, lunar logistics, and launch reliability. With operations centralized in Texas and a pipeline of small- to medium-lift vehicles and landers, Firefly could emerge as a strong U.S. counterpart to Rocket Lab and Relativity. The IPO will offer exposure to defense-backed space innovation, a sector increasingly prioritized by government budgets and commercial contracts.
ESA report highlights 6% YoY rise in private space investment
What happened: The European Space Policy Institute (ESPI), under ESA’s Space Economy portal, released its annual Space Venture report for 2024, showing a 6% increase in global and European private investment in the space sector in 2024 from 2023, reaching €6.9 billion.
Why it matters: Europe now accounts for a rapidly growing share of private space funding, signaling stronger capital flows into satellite infrastructure, upstream technology, and dual-use defense solutionsreflecting a maturing ecosystem where startups secure meaningful backing and R&D support .
Investor angle: The increase highlights a great opportunity for investors interested in European space startups—especially those focused on building big infrastructure. Venture capital, corporate money, and government funding are all coming together here. Investors should keep an eye on new hotspots and growing companies that are ready for their next round of funding.
Space BD & Gilmour Space join forces to boost Asia‑Pacific launch access
What happened: Japanese space integrator Space BD has partnered with Australia’s Gilmour Space to provide dedicated and rideshare launches using Gilmour’s Eris rocket and ElaraSat platform. Launches will take place from the Bowen Orbital Spaceport, aiming to serve small satellite customers across the Asia-Pacific region.
Why it matters: This partnership creates a new, sovereign launch option right in the Asia-Pacific — something the region hasn’t had before. Launching from Bowen offers flexible orbital paths that match local needs like Earth observation, defense, and communications.
Investor angle: This is a unique chance to get in early on non-U.S. launch infrastructure benefiting from strong regional growth and government backing. Plus, with vertical integration (launch services plus satellite and payload offerings), they can offer bundled solutions that set them apart from U.S. competitors.
U.S. Space Force Launches First International Space Strategy
What happened: The U.S. Space Force published its first-ever international cooperation strategy, outlining goals to build global coalitions in areas like space domain awareness, joint operations, and allied launch interoperability. It comes as orbital space becomes more congested, competitive, and strategically contested.
Why it matters: Space is increasingly becoming a domain where collaboration among allied nations is important for secure communications, missile warning systems, and resilient satellite constellations. At the same time, a recent GAO report highlights challenges such as export controls, infrastructure differences, and the absence of standardized protocols that may affect the pace of progress.
Investor angle: This opens the door for dual-use space startups and commercial defense integrators to enter multinational procurement pipelines. Companies offering interoperable payloads, secure satellite networking, and shared launch or tracking infrastructure may benefit from allied coalitions adopting common standards.
Senate spending bill to restore NASA funding stalls in committee
What happened: The Senate Commerce-Justice-Science appropriations bill is intended to restore most of the White House’s proposed FY-26 reductions to NASA funding but is currently stalled in committee due to an unrelated dispute, delaying a floor vote.
Why it matters: Should the bill pass largely intact, NASA’s overall budget would likely remain near $25 billion, helping to support programs such as Artemis, CLPS lunar deliveries, and key science missions. Until then, contract awards may be delayed or compressed later in the year, which could create timing risks for both prime contractors and startups.
Investor angle: Large contractors including Lockheed, Northrop, Maxar, and Axiom may avoid the most severe revenue impacts if the bill passes as expected; however, the ongoing legislative uncertainty could slow milestone payments. Investors should monitor committee amendments and any potential limits on cost-plus contracts, as these could affect margin expectations.
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Northwood launches modular high‑throughput “Portal” ground terminal
What happened: Northwood Space has completed operational testing of its first production ground terminal, “Portal,” which passed initial tests receiving data from US Defense Meteorological Satellite Program satellites, ahead of deployment later this year .
Why it matters: Northwood’s fully digital phased-array design enables scalable, software-driven ground station arrays capable of high-throughput satellite data handling. The modular terminal—measuring 9×5 ft and operable in arrays of 6–8 units—is optimized for rapid, low-footprint deployment without extensive construction .
Investor angle: Emerging ground-segment players like Northwood are tapping vital demand for scalable satellite data infrastructure. With a $36M funding raise and plans for global rollouts (12–16 portals/month production), this makes Northwood a high-conviction hardware/software infrastructure play .
GAO: Industry Still Clinging to Single-Use Satellite Model
What happened: A new U.S. Government Accountability Office (GAO) report highlights the space industry’s continued reliance on disposable satellites, despite technical readiness for on-orbit servicing, such as refueling, inspection, or repair. Many commercial players cite uncertain ROI, integration complexity, or insurance hurdles as reasons for maintaining throwaway models.
Why it matters: This inertia could increase space debris risks, mission costs, and supply chain strain, especially as orbital congestion worsens. On-orbit servicing (OOS) could extend satellite lifespans by years, improve sustainability, and create modular satellite architectures. Governments and startups (e.g., Astroscale, Northrop’s MEV) are already proving feasibility, but commercial adoption lags behind.
Investor angle: This is a market inflection point. Firms positioned to deliver OOS technology (robotics, autonomous rendezvous, refueling nodes, plug-and-play satellite buses) are well-poised to capitalize once adoption accelerates. Investors should monitor regulatory nudges (like debris mitigation mandates), satellite bus standardization, and insurance policy shifts that may unlock mass adoption of servicing architectures.