München-based startup Starflight Dynamics (SFDY), a pioneering company in the space industry specialising in the development of foundational technologies for in-space operations, has closed its pre-seed funding round. The company has raised almost €2 million, backed by the sovereign VC fund Coinvest Capital, contributing €750,000 and prominent angel investors.
Founded in 2023, Starflight Dynamics set out with an ambitious goal: to bring industrial-scale processes into orbit by leveraging the unique benefits of microgravity. Since then, the company has focused on two key technology areas.
The first is reactive in-space platforms and systems, powered by a proprietary water-based orbital propulsion stack. These systems are built for high endurance and flexibility, supporting modular, mission-adaptable operations, especially for robotic, sovereign, and defence-related missions.
The second focus is high-throughput bulk crystal growth systems designed for space environments, enabling large-scale production of advanced semiconductor and quantum materials. By operating in zero gravity, these systems unlock the potential for industrial-grade manufacturing of next-generation substrates beyond Earth.
Philipp Bauer, founder and CEO of Starflight Dynamics, said:
This pre-seed investment round marks a key inflection point for the company. The participation of institutional investors signals strong confidence in advanced manufacturing and dual-use space technologies as a compelling and timely opportunity. Since our inception, we’ve worked to sharpen both the technical foundations and the real-world relevance of our technologies – especially in dual-use contexts. The investment allows us to take the next concrete steps: advancing our prototypes, growing the team, and deepening engagement with early partners.
As Europe retools for a more contested and fast-moving space domain, the window for building sovereign systems from the ground up is closing. We intend to lead that transformation. This round comes just ahead of our first commercial contract announcement – a key step toward real-world deployment.
According to Viktorija Trimbel, Managing Director of Coinvest Capital, they are proud to back Starflight Dynamics in its ambitious effort to push the boundaries of what can be achieved in orbit:
The company’s focus on building next-generation industrial infrastructure in space speaks to a vision that’s both technically ambitious and strategically timely, especially in the field of rare materials production, a critical element in multiple advanced industries and major geopolitical tensions around supply.
We believe that their commitment to cutting-edge engineering, combined with a focus on sustainable, scalable solutions, positions the company to address some of the most complex challenges of the space environment. This is the kind of forward-thinking venture we look for – where deep tech meets real-world impact, and new frontiers in space are opened for Lithuanian and European industrial and strategic future.
Investment in Starflight Dynamics brings a unique value for Lithuania and opportunities to play an active role in the development of frontier technologies in space. The company already cooperates with multiple Lithuanian partners and is considering opening a Lithuanian subsidiary.
The round is joined by experienced business angels, including the founding members of the newly formed Space & Defence Committee under the European Business Angel Network (EBAN).
Rita Sakus, EBAN Board member, shared:
The future of space isn’t just about reaching orbit – it’s about building the capabilities to thrive once we’re there. Investing in Starflight Dynamics is an investment in next-generation propulsion, advanced in-space manufacturing, and breakthrough crystal semiconductor technologies that benefit not only sustainable space operations but also critical applications here on Earth.
These innovations strengthen our industrial base, advance high-performance materials for both commercial and defence sectors, and help secure Europe’s leadership in the new space era. Cross-border syndication is vital to the success of new space and defence initiatives emerging in Europe – we will reach new heights through pan-European collaboration.
Dominykas Milasius added that Starflight Dynamics has demonstrated both a unique approach to in-space manufacturing and a tangible commitment to defence innovation:
We’re excited to back these efforts. The syndicate includes both current and former aerospace and defence entrepreneurs and investors, matching Germany’s industrial strength with the agile, necessity-driven innovation coming from Lithuania. We hope that this operator-to-operator partnership between two parts of Europe sets a new example for future European investments in dual-use technologies that are geopolitically crucial.
Backed by private and institutional capital, Starflight Dynamics is building the sovereign infrastructure needed to make Europe faster, more autonomous, and more capable in space.
Investments will be used to advance several prototype demonstrators, improve the company’s lab infrastructure, and strengthen and expand the team.
Lead image: Starflight Dynamics | Photo: Uncredited
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