The European space industry took a significant step forward as The Exploration Company (TEC) announced on Monday that it had successfully raised $160 million in a funding round.

This investment will propel the development of its innovative Nyx capsule, designed to transport astronauts and cargo to space stations while emphasizing reusability—a crucial aspect of modern space exploration.

The funding round was co-led by venture capital firms Balderton Capital and Plural. It also included substantial contributions from French Tech Souveraineté, a French government-backed investment vehicle, and DeepTech & Climate Fonds, a German government-backed fund. The infusion of capital underscores growing European interest in establishing a foothold in the increasingly competitive space industry.

A Game-Changer in Space Transportation?

Nyx, TEC’s flagship product, is a reusable capsule engineered to carry passengers and cargo into space aboard rockets. Once the payload is delivered, Nyx is designed to re-enter Earth’s atmosphere and be prepared for subsequent missions. This focus on reusability, also adopted by Elon Musk’s SpaceX, mirrors the industry shift toward cost-efficient and sustainable space exploration.

“It’s a big market, and it’s growing at more than 10% annually because more nations want to fly their astronauts and go to the moon,” said Hélène Huby, TEC’s founder and CEO, in an interview with CNBC. “There is an increased demand for sending people to stations and sending cargo to stations.”

This growing demand is largely driven by the ambitions of nations like the U.S., China, and India, which are expanding their presence in space. One of the most ambitious projects in this arena is NASA’s Gateway program, which will establish the first lunar-orbiting space station.

Carving Out a European Niche in a Global Market

The space capsule market is dominated by a handful of players, including SpaceX’s Dragon capsule, as well as Chinese and Russian rivals. TEC aims to position Europe as a significant player in this domain, providing an alternative to existing solutions.

“We said, ‘Okay, let’s build this capacity in Europe so that Europe can have its own capsule. Also, the world needs an alternative solution. We cannot only bet on SpaceX,’” Huby explained.

The Nyx project is advancing rapidly. TEC is currently developing the second version of the capsule, which is slated for a test launch next year. The final version, expected by 2028, will partially benefit from funding provided by the European Space Agency (ESA).

TEC’s vision has already garnered significant market validation. The company has secured $800 million in contracts for Nyx’s use in upcoming missions. Its partners include Starlab, a company designing a next-generation space station, and Axiom Space, which specializes in developing commercial space station modules.

Huby disclosed that TEC aims to play a pivotal role in enabling the return of cargo from space—a niche that will gain prominence as space activities around Earth and the moon increase.

“If you have more people, you also have a need for more cargo. So this is what is happening around the Earth and around the moon,” she said.

A Bright Future for Europe’s Space Aspirations

The burgeoning space industry represents a strategic opportunity for Europe to reduce its reliance on non-European players and to contribute more robustly to global space endeavors. With its reusable technology and ambitious plans, TEC is positioning itself as a vital partner in the evolving space economy.

TEC is expected to become a cornerstone of Europe’s space industry, providing the continent with its first domestically produced reusable capsule while helping to address the growing global demand for space exploration and cargo transport solutions.