Four Estonian space startups receive €240,000 in funding

The Estonian Business Incubator of the European Space Agency (ESA BIC Estonia) has selected four new space-tech startups in its latest call: Babayte, Spiral Hydrogen, MS Forest, and Energy Risk Service. Each company will receive a development grant of €60,000 — half of the funding comes from the European Space Agency and the other half from the cities of Tartu and Tallinn, depending on the startup’s location.

A total of 11 strong candidates pitched their ideas to the ESA BIC Estonia consortium. Although the initial plan was to select three companies, the high quality of the applications led to the selection of four. One spot remains open for the upcoming autumn round.

The selected startups are:

• Babayte (Tartu) is developing BabAI Orbital — an onboard AI module for small satellites that helps avoid collisions.
• Spiral Hydrogen (Tartu) is creating a next-generation hydrogen generator with over 90% energy efficiency.
• MS Forest (Tallinn) is building a dynamic forestry data registry that reduces the time and cost of forest inventory.
• Energy Risk Service (Tallinn) is developing a satellite data-based forecasting system for the renewable energy sector.

Madis Võõras, Head of the Estonian Space and CERN Office, affirmed the high quality of the candidates: “The number, quality, and substance of the applications submitted for evaluation impressed the panel — but also made the selection process challenging. That’s why we ultimately decided to accept four candidates instead of the initially planned three.”

Kristiina Libe, Project Manager for Deep Tech at Tehnopol (pictured), emphasized that space technology is no longer just about solving problems in space: “There’s a growing recognition of how satellite data and other space-based technologies can be applied for the benefit of our planet. We welcome applications from companies with the ambition, dedication, and expertise to take space technology to the next level — both on Earth and in orbit.” She added that the accelerator’s mission is fully aligned with Tehnopol’s goal of supporting world-changing tech companies and innovation.

Sven Lilla, Head of the Space Sector at Tartu Science Park and Manager of ESA BIC Estonia, also highlighted the increasing relevance of space technologies in everyday life and the willingness of companies to take bigger risks in order to gain a competitive edge: “This round saw a notably high number of foreign founders among the applicants, demonstrating the growing attractiveness of Estonia’s ecosystem,” added Lilla.

Paul Liias, Head of Space at the Ministry of Economic Affairs and Communications, noted that the state actively supports deep tech development and entrepreneurship through ESA BIC: “Through ESA BIC investments, the government accelerates the growth of the capital-intensive deep tech sector, helping Estonian startups take their first steps and gain experience working with ESA.” He added that over the past eight years, the ESA BIC model has proven successful in preparing companies for investment and market entry.

The ESA BIC Estonia incubator is led by Tartu Science Park in collaboration with the Tehnopol Science and Business Park. The program is co-financed by the European Space Agency and the cities of Tartu or Tallinn, each contributing €30,000 per company.

To date, 36 companies have joined the Estonian incubator — half based in Tartu and half in Tallinn. Tartu has invested €355,000 into the program, with incubated companies generating over €6 million in labor taxes and nearly €10 million in revenue. Tallinn has contributed €345,000, with its companies contributing nearly €5 million in labor taxes and generating over €12 million in revenue.

More information: www.esabic.ee