Spanish startup Kreios Space, founded in 2021 by six recent graduates, has secured investment from the NATO Innovation Fund. The company is pioneering Very Low Earth Orbit (VLEO) satellite technology, targeting altitudes between 150 and 400 kilometers.
Kreios has developed an Air-Breathing Electric Propulsion (ABEP) engine that uses atmospheric air as propellant, converted into plasma and powered by solar energy. This innovation allows satellites to operate for years rather than days, mitigating fuel consumption and reducing space debris.
The NATO Innovation Fund led an €8 million funding round in September 2025, with participation from other venture capital firms. This investment marks Kreios Space as the first Spanish startup to receive strategic backing from the Atlantic alliance.
VLEO orbits offer significant advantages over higher altitudes, including three times the image resolution and direct broadband connectivity to mobile devices with minimal latency. These orbits are also uncrowded and free from space debris, potentially avoiding Kessler syndrome.
The six founders, all under 25 when the company started, studied Aerospace Engineering at the Polytechnic School of Catalonia. Kreios Space is headquartered in Vigo, Spain, with plans for manufacturing and validation processes at their new facilities.
The funding will support the launch of the first two test satellites to demonstrate the ABEP engine in orbit. Future plans include commercial constellations for Earth observation and direct-to-device communications, with applications in agriculture, resource management, defense, and resilient communication networks.