Spanish satellite startup Sateliot wants €150 million to beam 5G directly to smartphones from orbit

Sateliot, a Barcelona-based satellite startup, is seeking to raise up to €150 million ($172 million), a 50% increase from the €100 million round it announced in April. The company operates a network of low-Earth orbit satellites and plans to use the funding to deploy 16 more over the next year. By early 2028, it expects to launch larger satellites capable of beaming 5G data, voice, and video directly to ordinary smartphones.

“A new opportunity has emerged: integrating 5G within a satellite,” CEO Jaume Sanpera told Bloomberg. Sateliot was founded in 2018 to connect IoT devices like shipping trackers and utility sensors via satellite. The smartphone pivot represents a significant expansion. The company is working with Telefonica on the technology for direct-to-device links and has partnerships with other network operators to provide coverage in remote areas.

The raise comes as Europe ramps up satellite investment to avoid dependence on Elon Musk’s Starlink. The European Space Agency is deploying €22 billion over three years, and the European Commission has proposed reserving airwaves suitable for direct-to-device satellite communication for domestic players. The satellite connectivity race is intensifying globally, with Amazon’s Project Kuiper also scaling toward Starlink competition. Vodafone and AST SpaceMobile’s Satellite Connect Europe joint venture is pursuing a similar direct-to-phone service, though its eligibility for the reserved European spectrum is unclear given the US company’s 50% stake.

Sateliot is still seeking a lead investor for the round and said the additional €50 million could be raised as debt. It anticipates up to 50% public co-financing. IRIS², the European constellation led by Eutelsat, SES, and Hispasat, will initially focus on broadband rather than direct-to-device. That gap is the market Sateliot is targeting. Starlink keeps raising prices as it expands, and a European alternative that works directly with existing phones and carriers could capture demand from operators unwilling to route their customers through a Musk-controlled network.