Promus Ventures Closes €120M Space Fund

Promus Ventures Launches €120 Million Space Fund

Promus Ventures, a venture capital firm headquartered in Chicago, has successfully finalized a €120 million (equivalent to $139 million) investment fund dedicated to the space industry. This new fund, named Orbital Ventures, will concentrate on providing capital to companies in the early stages of development within the space sector.

Fund Structure and Backing

Orbital Ventures will operate from Luxembourg and was established through a combination of both public and private funding sources. A significant commitment of €40 million was made by the European Investment Fund, which serves as the investment branch of the European Investment Bank Group.

Further support for the fund comes from Luxembourg’s Ministry of the Economy and the National Credit and Investment Institution, demonstrating strong governmental backing for the initiative.

Prior Space Investments and Current Portfolio

Although Promus Ventures maintains a diversified investment portfolio across various industries, the firm has a demonstrable history of successful investments in the space technology arena. Previous investments include notable companies such as Rocket Lab, Spire, and Swift Navigation.

Orbital Ventures initially closed its first funding round in January 2020 and has since invested in several promising ventures. These include Isotropic Systems, a developer of satellite terminals, Ellipsis Drive, a geospatial data provider, and Fernride, a Danish technology company.

Industry Growth and Investor Confidence

“The New Space industry is experiencing substantial growth and innovation, and we are eager to allocate capital through this dedicated space fund,” stated Pierre Festal, a partner at Promus Ventures. “We extend our gratitude to our investors for their confidence and support in this undertaking. The current environment presents a crucial moment for global space companies, and the future appears promising.”

Rising Investment in the Orbital Market

The launch of this fund reflects a broader trend of increasing investor interest in the expanding orbital market. Recent data from Space Capital indicates a significant influx of capital into the space industry.

During the third quarter of 2021 alone, investors – encompassing venture capitalists, angel investors, corporate investors, and private equity firms – invested a total of $8.7 billion. This positions 2021 to surpass the investment records set in 2020.

SPACs and Venture Funding Trends

A considerable portion of the capital raised was directed towards space companies that became publicly listed through mergers with special-purpose acquisition companies (SPACs). These transactions accounted for $1.2 billion of the $3.9 billion in venture funding observed during the third quarter of this year.

Orbital Ventures is poised to capitalize on this momentum and contribute to the continued advancement of the space industry.