Spain's FOSSA Secures $10.5 Million to Expand Satellite Communications

Spanish space startup FOSSA Systems has announced the successful raising of approximately $10.5 million (around €15 million) to expand its satellite communications constellation. According to reports from Space News, the funding includes participation from a Spanish government-backed fund, accelerating efforts to establish sovereign space infrastructure in Europe.

Background on the Funding

FOSSA Systems revealed the funding round on June 24, 2026. The lead investor was Spain-based private investment firm Kibo Ventures. Notably, the Spanish Society for Technological Transformation (SETT), a government agency promoting technological innovation, contributed to the investment. Around a year ago, SETT had injected €14 million into another Spanish satellite communications firm, Sateliot, specializing in satellite connectivity for security and defense purposes. SETT’s participation in FOSSA’s funding underscores the Spanish government’s consistent strategic investments in the space sector.

With this funding round, FOSSA Systems’ total raised capital has reached approximately €20 million. Founded in 2019, the company has steadily attracted investments over the past six years.

From Picosatellites to CubeSats

FOSSA Systems has been operating ultra-small satellites known as “picosatellites” to connect low-power monitoring devices. With the newly raised funds, the company plans to deploy larger CubeSats in low Earth orbit (LEO). This transition will enhance communication capacity and introduce new functionalities.

Specifically, the move aims to bolster sovereign communications and space-based intelligence capabilities. Establishing satellite infrastructure within Europe ensures autonomous communication systems, reducing dependency on external satellite operators.

Europe’s Space Sovereignty Movement

FOSSA Systems’ funding is part of a broader investment surge in European startups targeting space sovereignty. According to Space News, Austrian propulsion startup Gate Space secured €6.3 million this month through an EU-supported accelerator program. Gate Space develops propulsion systems for spacecraft, contributing to Europe’s goal of increasing technological autonomy in space.

In recent years, European nations have actively pursued independent space infrastructure to reduce reliance on the U.S. and China. The satellite communications sector, in particular, has seen growing concerns over SpaceX’s Starlink, which has achieved a dominant global presence. The European Union is advancing the IRIS² (Infrastructure for Resilience, Interconnectivity, and Security by Satellite) constellation project, emphasizing the importance of public-private collaboration to ensure space sovereignty.

FOSSA CEO’s Vision

Commenting on the funding, FOSSA Systems CEO and co-founder Julián Fernández stated, “Our goal is to establish FOSSA as a benchmark in Europe’s sovereign space infrastructure.” His remarks highlight the company’s commitment to contributing to Europe’s strategic autonomy beyond commercial success.

FOSSA Systems’ technology is expected to find applications in industrial IoT, agriculture, environmental monitoring, and remote supervision of energy infrastructure. Particularly, demand is rising for communication solutions in areas with underdeveloped terrestrial infrastructure or during disaster recovery scenarios.

Intensifying Competition in Satellite

Communications

The satellite communications market is witnessing fierce competition, with major players like SpaceX’s Starlink and Amazon’s Project Kuiper advancing large-scale constellation projects. Simultaneously, national and regional initiatives emphasizing sovereignty are gaining momentum. In Europe, there have been notable developments, such as the merger of France’s Eutelsat and the UK’s OneWeb, and Germany’s Rivada Space Networks focusing on region-specific strategies.

Government-backed funding for startups like FOSSA Systems reflects the direct link between satellite communications and critical areas such as security, disaster management, and bridging the digital divide. The involvement of public funds helps ensure the sustainability of projects that may face profitability challenges if undertaken solely by private entities.

Technical Challenges and Future Plans

Transitioning from picosatellites to CubeSats presents technical challenges. Picosatellites, weighing less than 1 kg, offer advantages in cost and development time but come with limitations in payload capacity and communication capabilities. On the other hand, CubeSats, based on 10 cm cubic units that can be combined for expanded functionality, provide greater versatility.

FOSSA Systems must first build design and manufacturing systems compatible with larger satellite buses. Additionally, securing launch capabilities for LEO satellites is essential, requiring partnerships with operators of European rockets like Ariane 6 or Vega C, as well as private rockets like SpaceX’s Falcon 9.

While CEO Julián Fernández has not disclosed the exact timeline or number of satellites to be launched, the company appears poised to deploy initial CubeSats in orbit and commence services within the next few years.

Spain’s Space Industry Overview

Spain has historically held a notable position in the space industry, exemplified by the European Space Agency’s (ESA) facility near Madrid. However, the country has lagged behind the U.S. and China in satellite constellations. SETT’s investments in Sateliot and FOSSA Systems aim to narrow this gap.

Sateliot is focused on commercializing 5G non-terrestrial networks (NTN) based on the NB-IoT (narrowband IoT) standard, successfully launching its test satellite in 2024. Similarly, FOSSA Systems offers IoT-oriented satellite communication services, positioning both companies as key players in Spain’s satellite communications sector. The government views investments in these firms as a strategy to foster competition and drive technological advancements.

Editorial Opinion

This funding round for FOSSA Systems signals ongoing capital influx into Europe’s space startups. Spain’s active involvement through SETT could influence other European nations to accelerate investments in their own space sovereignty initiatives. Over the next three to six months, similar funding rounds for startups are expected to follow suit.

In the long term, Europe’s efforts to establish independent satellite communication infrastructure could challenge Starlink’s market dominance. However, for smaller players like FOSSA Systems to compete with large-scale constellations, differentiation through innovative technology and targeting niche markets will be crucial. CubeSat-based IoT communication, which demands less bandwidth, may provide complementary solutions rather than direct competition with Starlink.

References

• Spain-Backed Fund Joins FOSSA’s Sovereign Satellite Communications Push - Slashdot — Published on 2026-06-28