Iceye, a Finnish space technology startup, which is in the process of scaling up its satellite operation, has raised 200 million euros in its Series E round, with General Catalyst, an American investor, leading the round. This has pushed the company’s valuation to 2.4 billion euros. This funding round is one of the substantial recent capital inflows of European space and defence tech companies.
The money raised is partly from 50 million euros worth of secondary share sales. Besides a wide range of European investors, many others also contributed capital. Among them are A.P. Moller Holding from Denmark, Bpifrance from France, and Solidium, Ilmarinen, Keva, Lifeline Ventures, Tesi, and European Tech Collective from Finland.
With this capital injection, Iceye is very much in a position to continue its efforts of doubling down on defence and data services while at the same time increasing satellite production in the light of the geopolitical tensions reshaping global investment priorities.
Will the Company Go Public?
During an interview with Sifted in September, Iceye cofounder and CEO Rafal Modrzewski said the firm might debut on the stock market in the next one to three years but have not reached a final decision. Modrzewski also told Bloomberg in a separate interview that the company is already in the black, which is quite unusual for a space startup.
Iceye, which was founded in 2014, makes use of synthetic-aperture radar (SAR) satellites which can take crisp and clear images of the earth regardless of the weather or the time of the day. The company offers its data through subscription-based services to governments, insurers and other entities.
Iceye has already launched 62 of its satellites and has plans to speed up production substantially. The company intends to reach an output of one satellite per week on average next year, which would make it one of the most prolific satellite manufacturers in the world.
Defence Now Drives Revenue
While the company put together its pitch largely around environmental monitoring, disaster response and commercial imaging, defence has, in a short period of time, become the major driver behind the company’s growth. Presently, the company cooperates with governments and defence ministries in, among others, Finland and the Netherlands.
Besides that, it has acquired collaborations with prominent defence contractors like Rheinmetall and Saab. Iceye shared with Sifted in a recent conversation that it is a significant strategic turning point for them, reflecting the globally altering security landscape, that, at present, the bulk of their revenues come from the defence sector.
As a result, this turning point has been instrumental in pushing up the company’s valuation. According to the statement by the Iceye cofounder Pekka Laurila, defence positioning has become one of the major contributors to the investor community’s keen interest in the company.
“The uncomfortable truth is that if you don’t really go in deep with the defence and AI investor story, then you’re going to be missing out on something like 10x of your company value as of today,” Laurila pointed out by referring to prominent defence tech players like Anduril, Palantir and Helsing.
The Money Will Mostly Be Used for
By revealing this fresh injection of capital, Iceye declared that the newly acquired funds will mainly be directed to increasing the SAR satellite network, enhancing the sensing capabilities and developing the data intelligence services for governments and other agencies.
The firm is not only a satellite operator, but she is also providing essential real-time intelligence and situational awareness to her clients — be they military or civilian, decision-makers, and the tools that are becoming ever more critical.
With Europe looking over its defence shoulder, Laurila asserts that the current fascination with defence tech is far from being mere hype. “If you think of the defence of Europe, it is going to be really important,” he said. “You cannot overstress that. As far as public discourse goes, it is underhyped. We should be investing more.”
An Europe Heavyweight in Defence Tech Emerges
Iceye’s latest funding round is a clear indication of how fast Europe’s defence and dual-use tech sector is evolving. The Helsinki-based company, with profitability, global partnerships, and an expanding satellite network, is now one of Europe’s top space tech players in terms of value.
Should Iceye decide to go public within the next few years, it would be a significant milestone not only for the company but also for Europe’s dreams of creating its own globally competitive defence and space tech champions.