Pangea Aerospace, a start-up specialising in the development of propulsion systems for the aerospace industry, closes a EUR 23 million capital increase led by Hyperion Fund, a Spanish venture capital fund. Existing investors in the company’s capital are also participating in the round, including Primo Capital through the Primo Space fund, which has supported Pangea since 2021, and CDTI Innvierte. The new partners also include André-Hubert Roussel, former CEO of Ariane Group.
Founded in 2018 and based in Barcelona and Toulouse, Pangea Aerospace is a company specialising in the development of advanced propulsion technologies that enable the creation of more efficient and reusable rockets based on the use of sustainable propellants. Pangea’s solutions offer an efficient and sustainable alternative for mobility in space, helping to significantly reduce the costs of launchers, satellites and orbital transfer vehicles.
With this funding, the company will accelerate its expansion in the European market, aiming to consolidate its private and institutional customer base. Pangea was selected a few months ago by the European Space Agency (ESA) to design and develop the high thrust rocket engine for future reusable European launchers, and is also involved in several programmes for the development and integration of its Arcos engine and for the reuse of the upper stages of the rocket using aerospike technology. In parallel, the company is collaborating with ESA and a consortium of European companies to design, manufacture and validate key technologies for the next generation of large space engines, through two strategic contracts that strengthen its position as a major player in the space propulsion landscape in Europe.
The new capital will enable Pangea to enhance its production, integration and testing capabilities, promoting the development of strategic technologies useful to strengthen European space sovereignty at a time of strong change in the global geopolitical context.
Currently, an average of four to five satellites a day are launched into space, in addition to the approximately 10,000 already in orbit. By 2025, projections indicate that between 2,500 and 3,000 satellites will be launched, thanks to the expansion of mega-constellations and new initiatives in telecommunications and Earth observation.
According to data from 2023, 52 per cent of these launches were carried out by US operators, 84.4 per cent of them by SpaceX, according to a note released by the start-up. Meanwhile, China performed 30% of the launches. In response, European authorities are working to develop their own capabilities in this critical sector, essential for telecommunications, mobility and defence, in order to achieve strategic independence as soon as possible.
Propulsion systems typically account for 30% of the total development cost of a rocket. Moreover, they define the performance of a launcher and are responsible for 50% of launch failures, making them a key factor in the development of the industry.
Pangea Aerospace is among the leading companies in Europe specialising exclusively in space propulsion, offering everything from small engines for spacecraft to high-thrust propulsion systems for launchers. The company follows a business model similar to that of Rolls-Royce in the aircraft industry, which has already been validated by several private customers.
The company’s competitive advantage lies in its proprietary technologies, which enable more efficient and cost-effective propulsion systems, allowing customers to maximise launch performance and reduce development time and costs. This is achieved through special know-how on advanced materials and alloys, aerospike technology, additive manufacturing, innovative cooling systems, reusability and sustainable propellants.
This expertise is crucial for the future of the industry and strengthens Pangea’s position as a global leader in space propulsion. Pangea is the first company in the world to successfully test-fire an aerospike engine using sustainable propellants such as liquid methane and oxygen, a technology known for its scalability, sustainability and reusability.
To date, Pangea had raised EUR 8 million, establishing itself as a major player in the sector and counting on the continued support of key investors such as Primo Space, which has always believed in the quality of the team and its technologies. The company currently has eight active contracts between private and institutional customers and expects to double its revenue by 2025, with a commercial pipeline of more than EUR 120 million.
The team (pictured) that founded Pangea consists of experts with backgrounds in aerospace and business, with experience gained in leading companies such as Airbus, Northrop Grumman and AVIO. Technical co-founders Adrià Argemí, Nicola Palumbo, Federico Rossi and Rasmus Bergström were trained in Italy at La Sapienza University in Rome. Thanks to the investment, Pangea plans to double its workforce and enhance its production, integration and testing capacity.
With this deal, Hyperion Fund starts its investment phase after raising EUR 150 million as a major European fund dedicated to aerospace, cybersecurity, AI and defence. After evaluating over 220 companies, Hyperion is currently negotiating with the best companies in NATO countries in the fields of artificial intelligence, robotics, geolocation, photonics, electromagnetics and aeronautics.
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