Europe Relies on SpaceX More Than Is Safe – Investors Sound the Alarm

Europe is facing a critical vulnerability — an overreliance on Elon Musk’s SpaceX. Bernard Liautaud, managing partner at Balderton Capital, has warned that unless the continent accelerates investment in its own space and defense technologies, it risks becoming a hostage to American dominance in orbit. “An increasing part of military supremacy will take place in space — and Europe is falling behind,” Liautaud told Financial Times. “We must become self-sufficient. Dependence on SpaceX is a massive risk.”

Europe Losing Ground in the Space Race Following Russia’s invasion of Ukraine, NATO countries have sharply increased defense spending and demand for cutting-edge technology. Dozens of startups have emerged in fields like drones, AI, and battlefield software. Yet in space — the new geopolitical frontier — Europe remains vulnerable. SpaceX dominates the global satellite launch market, and its Starlink system is a key component of military communications. For European governments, SpaceX is both a critical partner and a potential liability — particularly if political relations with Washington were to deteriorate.

Balderton Pushes for “Space Independence” Originally founded as the European arm of Benchmark Capital, Balderton Capital is now one of the continent’s largest venture firms. It has backed over 250 tech companies — including Revolut, Wayve, and Dream Games — and is now channeling resources into projects that strengthen Europe’s strategic autonomy. Last year, the firm co-led a $160 million investment round in The Exploration Company, a Franco-German startup developing cargo spacecraft, lunar landers, and rocket systems. “These are the kinds of investments that can help Europe build an independent space infrastructure,” Liautaud said.

Europe vs. American Dominance Hélène Huby, CEO of The Exploration Company and former Airbus executive, voiced a similar concern at Italian Tech Week:

“Europe is currently weak when it comes to space infrastructure,” she said. “We need to invest in launch systems, satellites, and technology that can rival SpaceX and Blue Origin.” SpaceX, now valued at over $400 billion, dominates the world’s commercial launch market. Jeff Bezos’s Blue Origin is another major U.S. competitor. Meanwhile, European players face limited funding, fragmented ecosystems, and slower development cycles.

Startups as Europe’s New Defense Backbone Balderton partner Suranga Chandratillake said the mindset across Europe is changing:

“Twenty-five years ago, governments would have never turned to startups for defense solutions,” he noted. “Today, they are an essential part of the answer.” European governments are increasingly involving private innovators in defense procurement, marking a fundamental shift in how the region cooperates with the tech sector. This integration could help Europe keep pace with the U.S., China, and India — nations already treating space as a strategic frontier.

Conclusion Europe has world-class scientists, engineers, and investors — but lacks a unified strategy and strong funding. If it wants to stay sovereign, it must learn to “think like SpaceX” while forging its own path to the stars.

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