Key Takeaways

  • FOSSA raised €9.25 million to scale its LEO nanosatellite constellation and expand globally.
  • The company plans to deepen its satellite IoT capabilities for security, defense, and sovereign communications.
  • The funding aligns with growing satellite IoT demand, as European space-tech investment continues a rapid upward trajectory.

FOSSA's latest funding round marks another step in Europe's expansion of space-enabled connectivity. The Spanish IoT satellite company closed €9.25 million (about $10.5 million) to support global deployment of its sovereign satellite infrastructure and scale its capabilities for security and defense.

Kibo Ventures led the round, with participation from the Spanish Society for Technological Transformation (SETT), Space Frontiers Fund II with SPARX Asset Management Co., Ltd. as manager, Indico Capital, and WISeSAT. This mix of private capital and public institutional backing signals national interest, particularly regarding defense applications and sovereign connectivity infrastructure.

Satellite IoT adoption continues to accelerate as enterprises require coverage beyond terrestrial networks. According to GSMA Intelligence, global IoT connections were projected to climb to roughly 27 billion by 2025, driven heavily by demands in industries like agriculture and logistics. Concurrently, Omdia estimates that the satellite IoT market will grow at a 20% to 25% CAGR through 2030, supported by strong activity in maritime, energy, and wide-area sensor deployments. FOSSA's capital raise addresses this sustained demand for non-terrestrial coverage.

FOSSA has already placed more than 25 satellites in orbit and is targeting a total constellation of 140. Its next launch, the 26th in its constellation, is scheduled to occur in the coming weeks. The company develops in-house infrastructure for satellite IoT connectivity, secure communications, and space-based intelligence solutions (SIGINT). These capabilities map directly to applications across energy, agriculture, logistics, critical infrastructure management, and national security. With European governments increasingly prioritizing sovereign communications alternatives, this blend of commercial and defense operations aligns FOSSA directly with regional strategic objectives.

European space-tech funding has scaled rapidly in recent years. Dealroom data indicates that startups across Europe's space segment attracted about $1.3 billion in 2025, representing nearly a tenfold increase over a five-year period. Operating within this supportive capital environment, FOSSA competes alongside players like Swarm Technologies and Lacuna Space to provide low-power IoT connectivity from orbit.

Low-Earth Orbit architectures have become the dominant choice for low-latency, low-power IoT links. According to the ITU and the European Space Agency's 2024 market outlook, hundreds of small satellites are expected to launch annually to support machine-to-machine traffic and sensor workloads. LEO's proximity allows for smaller form factors, lower transmission power, and more responsive service, technical requirements that remain critical as IoT devices proliferate globally.

For enterprises evaluating these technical offerings, the standards landscape is an operational necessity. FOSSA focuses on 3GPP NB-IoT and LTE-M specifications for non-terrestrial networks, both of which are central to massive machine-type communications. For security, guidance such as NIST SP 800-213 provides frameworks for IoT risk management, detailing protocols for when connected devices interface with satellites and cross-border networks. These established standards give companies a framework to integrate satellite IoT deployments into existing operational procedures.

The organization's leadership framed the recent capital injection as a step toward broader European leadership in sovereign space infrastructure. The CEO and co-founder of FOSSA noted that the company has grown from a small startup into an internationally present provider with a launch history of 25 satellites to date, aiming to establish the firm as a European benchmark in the sector.

The new funds will support team growth and the global commercial expansion that the company initiated in 2024. Defense-oriented capabilities are an explicit part of the roadmap, reflecting how European IoT satellite firms are increasingly aligning with regional policy priorities. Furthermore, the integration of SIGINT capabilities provides new avenues for supporting public sector and critical infrastructure customers.

The boundary between terrestrial and non-terrestrial connectivity continues to blur. IEEE analysts have observed that hybrid systems combining ground networks with LEO links provide more resilient performance in remote regions. For enterprises seeking reliable environmental sensing, maritime asset tracking, or energy infrastructure monitoring, this hybrid model serves as a highly practical solution. FOSSA's ongoing constellation expansion supports this technical architecture, aiming to deliver consistent coverage in areas where terrestrial networks remain sparse.

FOSSA's focus on sovereign capability marks a distinctive operational approach. In Europe, where digital sovereignty is a recurring policy theme, satellite IoT infrastructure built by regional players attracts both commercial and strategic interest. These deployments directly support cybersecurity protocols, supply chain security, and climate monitoring initiatives, utilizing IoT satellites for large-scale environmental and agricultural data collection.

FOSSA is actively scaling its constellation toward its 140-satellite goal. Supported by strong market growth indicators from GSMA Intelligence, Omdia, and Dealroom, the company is targeting an expanded role among the leading LEO IoT connectivity providers across Europe and global markets as its upcoming launch schedule proceeds.