2025 is the Dawn of NewSpace 3.0

T𝗵𝗲 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘀𝗽𝗮𝗰𝗲 𝗱𝘂𝗮𝗹-𝘂𝘀𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗴𝗹𝗼𝗯𝗮𝗹𝗹𝘆. Should every European commercial space company with applicable technology develop a space defence strategy? That’s where the money is.

Germany just committed €35 billion to space defence by 2030 - €8.75 billion annually, or roughly 9 times its ESA contribution. 𝗟𝗲𝘁 𝘁𝗵𝗮𝘁 𝘀𝗶𝗻𝗸 𝗶𝗻. Germany slashed its agency funding to €952 million for 2025, then announced a cumulative five-year military space investment that dwarfs its civilian program.

"𝘞𝘩𝘰𝘦𝘷𝘦𝘳 𝘢𝘵𝘵𝘢𝘤𝘬𝘴 𝘴𝘢𝘵𝘦𝘭𝘭𝘪𝘵𝘦 𝘯𝘦𝘵𝘸𝘰𝘳𝘬𝘴 𝘱𝘢𝘳𝘢𝘭𝘺𝘻𝘦𝘴 𝘦𝘯𝘵𝘪𝘳𝘦 𝘯𝘢𝘵𝘪𝘰𝘯𝘴" German Defence Minister Boris Pistorius warned last month. He's not being hyperbolic. When Russia crippled 6,000 wind turbines through satellite disruption in 2022, Germany learned infrastructure protection now starts hundreds of kilometres above Earth.

The money is moving. Fast.

They’re not alone. Italy increased defence space spending by 340% since 2022. Poland boosted ESA contributions by €146 million specifically for security applications. Meanwhile, the US Space Force annual budget hit $40 billion (double NASA's $25 billion), signalling where national priorities have shifted.

"𝘛𝘰𝘥𝘢𝘺 𝘮𝘢𝘯𝘺 𝘤𝘢𝘱𝘢𝘣𝘪𝘭𝘪𝘵𝘪𝘦𝘴 𝘵𝘩𝘢𝘵 𝘌𝘶𝘳𝘰𝘱𝘦𝘢𝘯 𝘢𝘳𝘮𝘦𝘥 𝘧𝘰𝘳𝘤𝘦𝘴 𝘥𝘦𝘱𝘦𝘯𝘥 𝘰𝘯 𝘢𝘳𝘦 𝘤𝘰𝘮𝘮𝘦𝘳𝘤𝘪𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦." - Nicolas Guillermin, Head of Secure Connectivity and Space Surveillance, European Commission

Hundreds of commercial space firms already possess dual-use capabilities - the challenge is connecting them with defence organisations seeking innovation. Led by the US Space Force, defence buyers are streamlining procurement and actively co-developing technologies with commercial partners.

This convergence of increased demand and greater risk appetite from defence buyers should be a catalyst for European VC investment in the sector. The commercial companies that recognise the defence potential of their technology can access significant new markets and capital.

Forbes-Space can help facilitate both this market entry into the space defence sector, and the funding to support early-stage dual-use applications.

𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻: Is Europe's commercial space sector and its capital markets embracing this tectonic shift as rapidly as their American counterparts?