Musk’s European rival The Exploration Company raises millions in new funding

Founded in 2021, The Exploration Company (TEC) announced on Monday that it has raised $160 million (€151.7 million) in Series B funding (when the company is profitable), bringing its total funding to nearly $208 million (€197 million). This manufacturer of spaceships based in Germany is often considered the European rival of the SpaceX Dragon of Elon Muska reusable capsule designed to transport cargo and people to space.

The series B financing round has been led by venture capital companies Balderton Capital and Plural. Tech Souverainetébacked by the French government, and DeepTech & Climate Fundsbacked by the German government, were also major contributors. In February, TEC raised €40 million (€38 million) in its Series A funding round, co-led by EQT Ventures.

Plans to develop the Nyx passenger and cargo transporter

The funds will primarily be used to further develop TEC’s flagship product, Nyx, a reusable spacecraft similar to the SpaceX Dragon. Nyx is designed to transport passengers and cargo to and from the International Space Station (ISS) in low Earth orbit. The second version of Nyx is expected to launch in 2025, and the first full mission is planned for 2028.

Hélène Hubyco-founder and CEO of TEC, commented: “Over the last 12 months, we have achieved important operational milestones and financial and signed important service contracts with both space agencies and commercial clients. “This new funding is the next step in expanding our ambitions.”

First privately funded reusable capsule

TEC is the first reusable space capsule private financing capable of flying to space stations, he stressed, unlike SpaceX’s Dragon, financed largely by the POT. In May, TEC secured an important contract with the European Space Agency (ESA) for the Low Earth Orbit (LEO) Cargo Return Service. This agreement included an initial financing of 25 million dollars (24 million euros), which was a decisive achievement in the company’s commercial progress and laid the foundation for possible future collaborations with the POT.

The THAT launched a tender in December 2023 for space cargo transportation services, with the aim of strengthening the independence and competitiveness of Europe in post-LEO operations.

Expansion of market opportunities

Huby expressed his confidence in the growing market for space cargo services, which, according to his estimates, is expanding at an annual growth rate of more than 10%. Currently, only two companies, SpaceX and Northrop Grumman, provide cargo services to and from the ISS, both based in the United States. However, potential competition is emerging from ChinaIndia and Russia. The exploration company has already secured some $770 million (€730 million) in pending contracts with private developers of space stations.

In May, TEC signed an agreement with Starlab Spacea commercial LEO space station, for three pre-booked cargo transport missions. In September 2023, the company also reached a pre-booking agreement with Axiom Spacea privately funded American space infrastructure developer.

A distinctive approach

hubby highlighted Nyx’s unique advantage in its ability to launch from space stations in different countries, unlike SpaceX Dragonwhich is designed specifically to launch on SpaceX rockets. In an interview, he stated “The world needs more competition, and TEC is building an alternative. We are very aware that we are late, that we are much smaller, etc., but we have to start.”

With this ambitious round of financing and a growing list of contracts, TEC aims to become a key actor in the global space transportation market.