A New Frontier in Orbit: Kreios Space’s Groundbreaking Funding
In a move that’s set to redefine satellite capabilities, Spanish startup Kreios Space has secured 8 million euros ($9.3 million) in fresh funding to advance its VLEO satellite tech. Announced on September 23, 2025, this investment from the NATO Innovation Fund and JOIN Capital underscores Europe’s growing ambition to lead in deep-space technologies. VLEO satellite tech, operating at altitudes below 400 kilometers, promises unprecedented advantages over traditional high-orbit systems, including sharper imagery and lower latency communications.
Founded in 2022 by aerospace engineers Adrián Senar and a team of ex-ESA veterans, Kreios Space emerged from the frustration of outdated satellite designs. Traditional low Earth orbit (LEO) satellites hover at 500-2,000 km, but atmospheric drag makes sub-400 km operations challenging—until now. Kreios’s innovation lies in Air-Breathing Electric Propulsion (ABEP), a system that ingests atmospheric particles to generate thrust, countering drag without bulky fuel tanks. This allows satellites to “breathe” the thin air at VLEO altitudes, enabling longer missions and more agile deployments.
The funding round builds on a 2.3 million euro seed raise in 2024, which funded initial prototypes. With advisory input from giants like Thales, JAXA, and the European Space Agency (ESA), Kreios has already tested ABEP in ground simulations. “We’re not just building satellites; we’re opening up an orbit that was written off as impossible,” Senar, CEO and co-founder, declared in a statement. This sentiment echoes the broader push for sovereign space tech amid geopolitical tensions, where reliance on foreign constellations like Starlink raises security flags.
What Happened: The Deal and Its Mechanics
The September 23 announcement came at a pivotal time for Europe’s space sector, which trails the U.S. and China in commercial launches. The NATO Innovation Fund, a €1 billion vehicle launched in 2022 to bolster defense tech, led the round with its focus on dual-use innovations—civilian tools with military applications. JOIN Capital, managing over €150 million, chipped in for its deep-tech portfolio, which spans quantum and robotics.
Kreios plans to deploy its first VLEO demonstrator by 2027, targeting applications in Earth observation, tactical surveillance, and direct-to-device connectivity. Unlike geostationary satellites plagued by signal delays, VLEO satellite tech could slash latency to milliseconds, vital for real-time disaster response or autonomous drones. Early partners include European defense contractors eyeing border monitoring, while commercial angles include precision agriculture via sub-meter resolution imaging.
Industry watchers hailed the raise as timely. “VLEO satellite tech gives Europe sharper eyes, faster connectivity, and greater independence in space,” Senar added. With global satellite launches projected to hit 2,000 annually by 2030 per Space Capital reports, Kreios’s edge in cost-efficiency—estimated 30% lower per satellite—positions it as a disruptor.
Reactions from Experts and Stakeholders
The news rippled through the space community. Dr. Maria Rossi, a satellite propulsion expert at ESA, praised the ABEP approach: “This isn’t incremental; it’s transformative. VLEO satellite tech could democratize high-res data, much like GPS did for navigation.” On the flip side, skeptics like U.S.-based analyst Tom Wheeler from BryceTech warn of scalability hurdles: “Drag management at VLEO is brutal; one failed demo could stall momentum.”
NATO’s involvement drew mixed reactions. Proponents see it as smart hedging against U.S. dominance, while critics in pacifist circles question militarization. Shorooq Partners, a Middle East VC with space interests, tweeted: “Exciting to see VLEO satellite tech gaining traction—Europe’s answer to reusable rockets.” Social media buzz on X (formerly Twitter) spiked, with #VLEOSat trending among 5,000+ posts in 24 hours, blending excitement from tech enthusiasts and concerns over space debris.
Investors like JOIN Capital’s portfolio manager emphasized ROI: “Kreios’s tech aligns with our thesis on resilient infrastructure. VLEO satellite tech isn’t just niche; it’s the future of global connectivity.”
Broader Impact on the Startup Ecosystem
This funding injects vitality into Europe’s fragmented space startup scene, where only 15% of global VC flows to non-U.S. firms, per Dealroom data. Spain, Kreios’s home, has seen a 40% uptick in aero-tech investments since 2023, fueled by EU’s €6 billion Space Programme. For startups, it signals that dual-use tech—blending civilian and defense—unlocks deeper pockets, contrasting pure consumer plays.
Economically, VLEO satellite tech could spawn jobs in propulsion manufacturing and data analytics, potentially adding €500 million to Europe’s GDP by 2030, estimates from McKinsey suggest. Environmentally, lower orbits mean less light pollution for astronomy, though increased density risks Kessler syndrome—cascading collisions. Kreios mitigates this with de-orbiting protocols baked into designs.
Globally, it challenges incumbents like SpaceX, whose Starlink fleet operates higher up. Emerging markets in Africa and Asia, underserved by current broadband, stand to benefit from affordable VLEO-enabled internet, bridging the digital divide.
Future Outlook: Orbiting Toward Dominance
Looking ahead, Kreios eyes a Series A in 2026 to fund a full constellation of 50 satellites. Partnerships with ESA for joint missions could accelerate timelines, while U.S. DoD interest hints at transatlantic collaborations. Senar envisions VLEO satellite tech powering 6G networks by 2035, with applications in climate monitoring and urban planning.
Challenges remain: Regulatory hurdles from the UN’s space treaties and competition from China’s VLEO prototypes. Yet, with NATO’s backing, Kreios is poised to lead. As Europe grapples with tech sovereignty post-Brexit and Ukraine, this raise isn’t just capital—it’s a statement. VLEO satellite tech may soon be as ubiquitous as smartphones, reshaping how we see—and connect to—our world.
