A leading European tech investor has said that the region needs to urgently develop its own space capabilities instead of relying heavily on American companies. According to a report by The Financial Times, Bernard Liautaud, a senior partner at Balderton Capital—the investment firm behind tech companies like Revolut—warned that Europe is becoming “too dependent” on the US for space technology, particularly Elon Musk-led SpaceX.He said this dependence creates a “huge risk” for Europe and stressed that “we need to be more self-sufficient.” According to Liautaud, future battles for “military supremacy” will increasingly take place in space, not just on land, sea or air.However, he pointed out that SpaceX has become the “dominant force” in launching satellites and providing space-based communications. This leaves Europe vulnerable in a critical area of defense and technology, he added.

Europe’s defense tech investment gets boost

European investment in defense technology startups has surged dramatically this year. The increase follows NATO countries boosting their military spending after the Russia-Ukraine war, the report said.This spending boom has sparked the creation of dozens of new companies developing military technologies including drones, battlefield software, and other defense systems.However, Liautaud argues that Europe needs to do much more to build its own capabilities for launching satellites and creating space-based defense systems.Meanwhile, Suranga Chandratillake, another Balderton partner, said that investing in defense companies demands a unique approach to risk management.“Twenty-five years ago, when trying to solve these problems, Europe would have been one of the last places to turn to startups. Today, startups are a key part of the solution,” Chandratillake explained.This shift marks a significant change in how European governments view young tech companies—no longer seen as too risky or inexperienced, but as essential partners in building modern defense capabilities.