ReOrbit Secures €45 Million to Challenge Starlink in Europe
ReOrbit, a Finnish startup specializing in sovereign satellites, has successfully raised a record €45 million (approximately US $53 million) in a Series A funding round. This significant investment highlights the rapid growth of the European space technology sector, driven in part by geopolitical concerns over interdependence. Established in 2019 and headquartered in Helsinki, ReOrbit aims to empower nations that lack the capability to build their own satellites, offering an alternative to Elon Musk’s Starlink.
The company distinguishes itself by ensuring that its clients maintain full ownership and sovereignty over their satellite communications. While Starlink targets both private consumers and businesses, ReOrbit focuses on providing countries with a reliable option that enables them to control their hardware and software. According to CEO Sethu Saveda Suvanam, the company’s software layer, akin to iOS, can operate both their geostationary orbit satellite, SiltaSat, and their low Earth orbit satellite, UkkoSat. This flexibility is essential for nations recognizing the increasing importance of space for their defense and critical infrastructure.
ReOrbit’s innovative approach has already resulted in securing “a full contract worth some hundreds of millions” with one nation, along with multiple memoranda of understanding (MOUs) with other countries. Suvanam stated that although the company did not require external funding due to these contracts, the additional capital was sought to expedite growth. He has set an ambitious goal for ReOrbit, aiming for a €1 billion order book within the next four years.
The Series A funding round was primarily organized by Springvest, a Finnish firm specializing in crowdsourced public offerings for private companies. Although ReOrbit initially aimed to raise €50 million, the final amount achieved is the largest for a Finnish space tech startup to date. A public share issue of €8 million, open to Finnish private investors and family offices, was completed in just 4.5 hours, marking a record for Springvest. The remaining €37 million (approximately US $43.5 million) was contributed by institutional investors, including notable backers Varma, Elo, Icebreaker.vc, and others.
As competition in the satellite technology landscape intensifies, ReOrbit’s strategic decisions are influenced by its location. Suvanam, originally from India and with 15 years of experience in Sweden’s space industry, chose to establish ReOrbit in Finland due to its favorable regulatory environment and the success of companies like ICEYE, recognized as one of the most well-capitalized space startups outside of SpaceX.
The current geopolitical climate has underscored the importance of satellite communications. Recent disruptions to undersea cables in the Red Sea have served as a stark reminder of the critical role that satellite imaging plays in national security. “Finland is not a country that wants to be a superpower, and this is very important,” Suvanam noted. He highlighted that many nations, caught between global powers like China and the United States, are increasingly looking toward Europe and the Nordic region for neutral partnerships.
Looking ahead, ReOrbit is set to advance its capabilities further by collaborating with the European Space Agency. The company is currently developing a satellite for an in-orbit demonstration that is slated for launch in the second quarter of 2024. This initiative represents a significant step forward in ReOrbit’s mission to provide sovereign satellite solutions tailored to the needs of nations within Europe and beyond.
