Isar Aerospace secured €270 million in Series D funding as Europe races to bolster its sovereign space capabilities amid geopolitical tensions. The Munich-based rocket startup, founded in 2018, attracted new investors including Island Green Capital and Molten Ventures alongside existing backers HV Capital, Lakestar, and UVC Partners. The raise positions Isar as a key supplier of launch services to European governments, NATO members, and allied nations.

The funding will expand Isar's international operations and ramp up production of its Spectrum launch vehicle. Following its first test flight from Norway last year, the company plans to increase manufacturing capacity at its new Munich factory to produce up to 40 launch vehicles annually. Isar also signed a letter of intent with Maritime Launch Services to develop a second launch site in Nova Scotia, Canada.

Defense-related business now drives around 60% of demand for Isar's services, a significant shift from predominantly civil demand just a year ago. This growing military interest highlights Europe's heavy reliance on foreign launch providers, with fewer than 10 orbital launches conducted from Europe in 2025 compared with more than 190 in the US. Isar's funding comes as the EU considers distributing money from its new €5bn Scaleup Fund.