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Perhaps surprisingly, Estonia harbours strong space ambitions — the country is producing space-grade electronics, collaborates on space cybersecurity, and nurtures startups exploring the cosmos. This month, the European Space Agency’s Estonian business incubator (ESA BIC Estonia) announced its latest cohort of space-focused startups. The selection process was so competitive that the incubator expanded its intake from three to four companies.
Each startup will receive €60,000 in development funding, split equally between the European Space Agency and Estonia’s cities of Tartu and Tallinn. The winners are:
- Babayte (Tartu) is tackling one of space’s most pressing challenges with BabAI Orbital – an intelligent onboard AI system that helps small satellites avoid potentially catastrophic collisions. As space becomes increasingly crowded, this technology could be crucial for maintaining safe orbital operations.
- Spiral Hydrogen (Tartu) is betting on a new type of energy production with their innovative hydrogen generator that boasts over 90% energy efficiency.
- MS Forest (Tallinn) is transforming forestry management by creating a dynamic data registry that dramatically reduces the time and cost of forest inventories.
- Energy Risk Service (Tallinn) is developing sophisticated forecasting systems for the renewable energy sector, using satellite data to predict and manage energy production risks.
Madis Võõras, Head of the Estonian Space and CERN Office, noted that “the number, quality, and depth of the submitted applications pleased the evaluation panel but also made the selection process more difficult.” Equally important, Estonia starts to draw foreign talent in the niche, said Sven Lilla, Head of the Space Sector at Tartu Science Park.
Proven Success
Startups don’t just solve once impossible problems. They are also good for the economy. The ESA BIC Estonia program has demonstrated impressive results over its eight years of operation. With 36 companies now part of the program – evenly split between Tartu and Tallinn – the economic impact also has been substantial:
- Tartu: €355,000 invested, generating over €6 million in labour taxes and nearly €10 million in turnover
- Tallinn: €345,000 invested, producing nearly €5 million in labour taxes and more than €12 million in revenue
“By investing through ESA BIC, the state accelerates the growth of the capital-intensive deep tech sector, helping Estonian startups take their first steps and gain valuable collaboration experience with ESA,” said Paul Liias from the Ministry of Economic Affairs and Communications.
