Reshaping the Future of Commercial Space, Defense Tech Surge Fuels New Opportunities, Fundings: Morpheus, Black Forest Systems, & Bhairav Robotics
19 February 2025 - A Weekly Publication by New North Ventures
Space Industry Forecast: Boeing & Airbus Set to Divest in 2025
Space Capital's latest report predicts that Boeing and Airbus will divest their space divisions in 2025, signaling a major shift in the commercial space sector. These aerospace giants are struggling to keep up with the rapid pace of innovation in space, according to Space Capital. The predicted divestitures will alter the competitive landscape and create new opportunities and challenges, particularly in government partnerships in space.
The report forecasts that 2025 will be one of the most transformative years for the space economy, driven by growing defense spending and concerns over China’s advancing space capabilities. Space Capital points to initiatives like the Resilient Global Positioning Systems (R-GPS) program, which encourages partnerships with commercial firms to enhance GPS infrastructure.
The defense sector is becoming a key battleground, with companies like Redwire and Voyager Technologies shifting focus to defense contracts. Additionally, satellite firms such as Planet and K2 Space are tapping into the growing demand for military services, hiring former defense officials to expand their capabilities.
As the industry evolves, defense and national security operations will play a central role in shaping the future of space, making it a critical area to watch in 2025.
Defense Tech Funding Grows Despite Lower-than-Expected Investment
In 2024, venture funding for defense tech startups reached $3 billion, a modest 11% increase from 2023, despite some major funding rounds. The growth is notable given the sector's past challenges with investor hesitation due to ethical concerns. However, defense tech has increasingly attracted venture capital, particularly since Anduril Industries raised a massive $1.5 billion in Series F funding, boosting investor confidence.
The past year saw impressive rounds, including Helsing's $489 million and Saronic’s $175 million Series B. These large raises reflect rising geopolitical tensions and increased demand for advanced technologies such as AI, autonomous systems, and space tech.
With growing interest from top firms like Andreessen Horowitz and General Catalyst, and increasing defense spending under the new administration, defense tech investment is expected to continue its upward trajectory. Early 2025 has already seen strong rounds, signaling a promising year ahead for the sector.
Venture capitalists are more knowledgeable about defense tech than ever, deploying capital efficiently and effectively to meet both national security and commercial needs. As competition intensifies globally, the demand for cutting-edge defense technologies remains strong, making defense tech a space to watch.
More links to explore:
Founded: 2024
Key People: CEO Norman Koerschulte
Elevator Pitch: Provider of drone-based logistics services focused on fast, secure, and sustainable cargo transportation across Europe.
Funding: The company raised an undisclosed amount of seed funding on February 18, 2025.
Founded: 2024
Key People: CEO Oleksandr Davydenko
Elevator Pitch: Developer of advanced autonomous robotic systems designed to reduce casualties in high-risk operations.
Funding: The company raised an estimated $200,000 of venture funding from Double Tap Investment on February 17, 2025.
Key People: CTO RamaKrishna Commuri
Founded: 2023
Elevator Pitch: Developer of robots and weapon systems intended to serve the defense sector. The company specializes in quadrupedal robots and autonomous weapon systems, further solidifying its capabilities in defense robotics and autonomous systems.
Funding: A 45.33% stake in the company was acquired by Zen Technologies (BOM: 533339) for an undisclosed amount on February 16, 2025.
In our most recent episode of the Securing the Future Podcast, general partner Jeremy Hitchcock sits down with Nicholas Fitzgerald a strategic advisor to global corporations, law and private-equity firms, sovereigns, and others facing high-stakes reputational, commercial, PR, regulatory, and policy challenges. Together, they dive into how commercial and national security sectors collaborate to drive innovation.
