Scale-up Direct: KfW Capital invests in Isar Aerospace alongside UVC Partners

KfW Capital, together with portfolio partner UVC Partners, has invested in Isar Aerospace through the Scale-up Direct programme. The investment is part of the venture capital pillar of the Germany Fund and represents KfW Capital’s next direct co-investment under the new programme.

European pioneer in the New Space sector

Isar Aerospace is one of Europe’s leading New Space companies. The company develops, manufactures and tests its launch vehicles largely in-house and provides launch services for small and medium-sized satellites as well as satellite constellations.

Through this investment, KfW Capital supports the company’s next phase of growth and contributes to strengthening Europe’s commercial space infrastructure.

Christian Röhle, Co-Head of Investment Management at KfW Capital, said:

“Sovereign access to space is of strategic importance for the long-term competitiveness and resilience of Germany and Europe as a business location. Isar Aerospace has established itself as a key European pioneer in the New Space sector and is now entering a commercial scaling phase. With the Scale-up Direct Mandate, a core element of the Germany Fund, we support precisely such high-growth technology companies in future-oriented industries and help ensure they pursue their next growth stage from Germany.”

Christina Koch, Investment Associate at KfW Capital, added:

“With this transaction, we enable Isar Aerospace to take the next step in scaling and industrialising its launch vehicle. The co-investment alongside our long-standing partner UVC provides reliable funding for the company’s growth plans and highlights the strength of collaboration within the German VC ecosystem. In doing so, we are making a targeted contribution to the further development of a European provider of commercial launch services.”

Partnership for European technological leadership

The investment was made alongside UVC Partners, a long-standing fund manager in KfW Capital’s portfolio.

Johannes von Borries, Partner at UVC Partners, said:

“KfW Capital’s participation in this round reflects a growing conviction at the institutional level that sovereign access to space is a strategic necessity for Germany and Europe. Isar Aerospace is the company best positioned to deliver. At the same time, we should be clear-eyed: this is rocket science in the most literal sense. The qualification flight is a major milestone, but further development stages lie ahead that will require patience and continued commitment.”

Daniel Metzler, Co-Founder and CEO of Isar Aerospace, said:

“Space is no longer a frontier; it is the infrastructure of national power. With this strategic backing, we are expanding access to space for nations worldwide, delivering an orbital launch system at scale for government and commercial customers.”

Through Scale-up Direct, KfW Capital aims to support innovative technology companies in strategically important future industries and help strengthen Germany’s and Europe’s competitiveness and technological sovereignty.

Sonja Höpfner
Spokeswoman and communications manager

Tel: +49 69 7431 4396