Luxembourg’s financial networks and dedicated funding resources foster the sustainable and ongoing growth and development of the country’s space capabilities
In recent decades, Luxembourg has supported the commercial space industry with a combination of policy and funding initiatives aimed at encouraging innovation and entrepreneurship within a high-tech ecosystem showcasing space-related businesses at its heart.
Financial support may be provided to specific projects to complement equity and loans. Luxembourg offers substantial assistance to academic and private sector research projects through national R&D grants. At European level, Luxembourg is an active participant in the programmes of the European Space Agency (ESA) and the European Union to help companies transform innovative ideas into products and services.
NATIONAL SUPPORT FOR SPACE-RELATED R&D
From the onset of its involvement in advanced technology, Luxembourg has adopted a visionary approach, devising a range of programmes to encourage the country’s space companies to team up with the research community to hone expertise in the sector.
Drawing on decades of experience in R&D investment, the Grand Duchy provides backing for cutting-edge space technologies.
State-owned development bank SNCI will work closely with the Luxembourg Space Agency to identify and analyse promising business opportunities in the space sector, and if the partners’ criteria are met may offer various forms of financing.
A dedicated Space Research Program launched by Luxembourg’s National Research Fund and the Ministry of the Economy has been established to fund collaborative research involving partnerships between national public research institutions and Luxembourg-based companies. The initiative aims to both advance knowledge and contribute to the evolution of the country’s space ecosystem.
EUROPEAN FINANCIAL RESOURCES
The Grand Duchy’s participation in the ESA opens up access to European support programmes for Luxembourg-based companies, including opportunities in areas such as technology, telecommunications, navigation, earth observation and downstream applications. LuxIMPULSE, the Grand Duchy’s national space programme managed by the ESA, can provide funding to help companies bring innovative ideas to market.
Luxembourg has also established a partnership with the European Investment Bank to design and implement innovative funding tools especially for space resources exploration and utilisation, as well as related applications.
DRAWING ON LUXEMBOURG’S FINANCIAL NETWORKS
As a leading global financial centre, Luxembourg offers a range of resources for the creation of new space businesses. It is a hub for venture capital and private equity groups that operate under a regulated European framework, and facilitates access to funding from alternative investment sources such as business angels.
Together with several partners, the Luxembourg Space Agency is drawing up plans for the Luxembourg Space Fund, a Venture Capital vehicle to be established as a reserved alternative investment fund.
Its goal is to provide equity funding for new space companies with ground-breaking ideas and technology, including early-stage investment opportunities in hardware, software, communications, navigation and Earth observation services, leading to the creation of new products, services and employment in Luxembourg, Europe or worldwide. The fund will also target the fast-expanding market of in-space applications, including space logistics and the utilisation of space resources.