European satellite manufacturer NewOrbit has closed an oversubscribed $18.5 million Series A funding round to accelerate the commercialization of very low Earth orbit (VLEO), a region of space that has historically been considered too challenging for long-term commercial operations.
The funding round was led by Voyager Ventures and included participation from several new and existing investors. Among the backers are former NVIDIA Chief Scientist David Kirk, TIER Mobility co-founder Lawrence Leuschner, family office Custos, and existing investors Atlantic.vc, Lifeline Ventures, LGF, and Illusian.
The company said the capital will support the development and deployment of what it describes as the world’s first commercial satellite designed to operate continuously between 200 and 300 kilometers above Earth.
Targeting a New Orbital Frontier
Most commercial satellites operate at altitudes of 500 kilometers or higher. In contrast, VLEO lies significantly closer to Earth, offering potential advantages for imaging, communications, and data collection.
However, the environment presents substantial engineering challenges that have limited commercial adoption for decades.
At these altitudes, atmospheric drag can rapidly pull satellites back toward Earth, while atomic oxygen can degrade spacecraft materials and aerodynamic forces can destabilize spacecraft orientation.
NewOrbit says it has developed a proprietary satellite platform, known as NEO-1, specifically engineered to overcome these challenges.
The spacecraft incorporates an in-house propulsion system designed to counter atmospheric drag, maintain orbital stability, and support mission lifetimes of up to five years.
“For sixty years, VLEO has been treated as too hostile an environment for commercial satellites — but it is in fact the most valuable empty real estate in space,” said Anatolii Papulov, Chief Executive Officer and co-founder of NewOrbit.
“Today, no one in the industry has a reliable, affordable and fast way to fly payloads in very-low Earth orbit. We built our NEO-1 satellite to do exactly that.”
Potential Benefits for Imaging and Connectivity
By operating closer to Earth, satellites can potentially achieve higher performance while reducing operational costs.
NewOrbit believes VLEO systems could significantly reduce the cost of high-resolution Earth observation imagery while improving communications capabilities.
The company claims its approach could enable imagery collection at substantially lower costs than traditional satellite architectures and support low-latency services such as direct-to-device (D2D) communications, 5G connectivity, and live high-definition video transmission from space.
Industry interest in direct-to-device satellite communications has grown rapidly as operators seek to extend mobile connectivity beyond terrestrial network coverage.
Building a UK Manufacturing Hub
A significant portion of the new funding will be used to establish the NEO Production Complex in the United Kingdom.
The facility is expected to open in 2027 and will initially support integration of the company’s first commercial demonstration satellite ahead of a planned launch in 2028.
Following the inaugural mission, NewOrbit intends to rapidly expand production capacity, increasing output from approximately 10 satellites annually to several satellites per week.
The company said the facility is expected to become Europe’s largest dedicated manufacturing center for VLEO spacecraft.
Expanding Technical Expertise
To support its growth plans, NewOrbit has recruited engineers and specialists with experience at organizations including SpaceX, NASA, Tesla, and Airbus.
The company’s advisory board also includes several prominent figures from the aerospace and defense sectors, including former European Space Agency Director General Jean-Jacques Dordain and former UK Joint Forces Commander Sir Chris Deverell.
Growing Interest in Orbital Infrastructure
The funding highlights increasing investor interest in specialized satellite technologies and emerging orbital markets.
As demand grows for Earth observation, communications, and national security capabilities, companies are exploring new orbital regions and technologies that could offer performance advantages over traditional satellite architectures.
If successful, NewOrbit’s VLEO strategy could open a new commercial segment within the space industry by enabling sustained operations in one of the most challenging regions of near-Earth space.
