FOSSA, a Spain-based provider of satellite IoT connectivity and space infrastructure, has raised €9.25 million in funding led by Kibo Ventures. The company designs, manufactures, and operates its own LEO satellites for global low-power connectivity in areas without cellular coverage. The capital will accelerate deployment of a 140-satellite constellation and expand defense capabilities.
Defense Push Amid Sovereign Space Push
The round arrives as European governments prioritize independent space infrastructure following geopolitical tensions. Sateliot raised €70 million in a March 2025 Series B, while Myriota secured $50 million in December 2024. FOSSA differentiates through full vertical integration from picosatellites to ground stations, enabling lower costs and sovereign control.
Remote Connectivity Gap
Roughly 80% of the planet lacks terrestrial coverage, leaving energy, logistics, agriculture, and defense assets disconnected. Traditional satellite solutions remain expensive and slow to deploy, with legacy protocols holding 98% market share that is projected to fall sharply.
Vertical Integration Cuts Costs
FOSSA builds 3U to 6U nanosatellites in-house, launches via SpaceX rideshares, and sells IoT connectivity on a pay-per-message model. It also offers dedicated constellations for governments needing sovereign capabilities. The approach has enabled 25 satellites launched on roughly €20 million total funding.
As CEO Julián Fernández stated:
"Thanks to FOSSA, small nations, Ministries of Defence, and global corporations can define and execute their own space strategy in just a few months, while the vertical integration of the entire technology chain has allowed us to reduce costs by an order of magnitude."
Kibo Ventures Leads Strategic Round
Kibo Ventures led the round, with participation from Spanish government entity SETT, Space Frontiers Fund II, Indico Capital, and WISeSat. The investor mix signals both commercial growth capital and strategic validation for defense applications, including NATO DIANA selection for electromagnetic intelligence.
Satellite IoT Market Expands Rapidly
The satellite IoT market stands at $2.26 billion in 2026 and is projected to reach $4.7 billion by 2030 at 26% CAGR, according to IoT Analytics. Per Precedence Research, it could hit $15.77 billion by 2035. Structural drivers include falling launch costs, standardized protocols, and government programs such as EU IRIS².
Competitors include Sateliot with over $100 million raised and Myriota at $80.3 million total. FOSSA's capital efficiency and defense pivot position it as a European sovereign space player.
Constellation and Market Expansion Ahead
With 25 satellites already in orbit and launches continuing on SpaceX missions, FOSSA plans to reach 140 satellites while expanding its Tokyo office and Japan defense partnership with Kanematsu Corporation.