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Defense Tech · European Defense · Satellite · Venture Capital
ICEYE, a Finnish satellite developer, raised new funding at a €2.4 billion ($2.8 billion) valuation, led by venture firm General Catalyst, capitalizing on Europe's increased military spending and reaching profitability this year.
The company secured €150 million in new equity and €50 million in a secondary sale for early investors, as announced by ICEYE. CEO Rafal Modrzewski stated the funding, while not strictly necessary due to profitability, accelerates satellite launches to enhance European military capabilities, responding to urgent demand for readiness.
Founded in 2014, ICEYE shifted its primary focus from environmental monitoring to defense after the war in Ukraine, specializing in synthetic aperture radar satellites for high-resolution imaging through adverse conditions. ICEYE has signed defense contracts in the US, UAE, Japan, and notably in Europe with Poland, Portugal, Finland, and the Netherlands, with discussions ongoing with two more European countries.
It is partnering with German defense giant Rheinmetall AG in a joint venture for satellite production, with Rheinmetall's CEO Armin Papperger expecting €2 billion in potential orders from this venture. General Catalyst, a prolific backer of European defense startups, now has its head of Europe, Jeannette zu Fürstenberg, on ICEYE's board.
Modrzewski reported launching 25 satellites this year and plans to produce one unit per week next year, expecting revenue to double to over €200 million in 2025. The company has raised €600 million to date and plans to invest new funds in software and data tools for real-time intelligence.
