Space Forge has announced the close of a £22.6 million Series A round, the largest ever raised by a UK spacetech company at this stage. This bold investment signals not just a vote of confidence in the Cardiff-based startup but also in the broader promise of in-orbit manufacturing to transform industries from semiconductors to clean energy.
The round was led by the NATO Innovation Fund, marking one of its most strategic moves in emerging dual-use technologies to date. A strong coalition of investors backed the round, including World Fund, the National Security Strategic Investment Fund (NSSIF), and the British Business Bank via its Regional Angels Programme. Additional investors include Cardiff Capital Region, SpaceVC, Gaingels, and the London Technology Club.
A new industrial frontier
Founded in 2018 by Joshua Western and Andrew Bacon, Space Forge is pioneering a new industrial revolution, one that leverages the unique environment of space to manufacture materials that are difficult, if not impossible, to produce on Earth. By tapping into microgravity, vacuum, and extreme temperature differentials, the company aims to unlock a new category of super materials with far-reaching implications for the climate, defence, and digital economies.
ForgeStar® satellites and in-orbit missions
The new funds will accelerate development of the company’s next-generation, returnable satellite, ForgeStar®-2, a reusable platform designed for industrial-scale manufacturing in space. The round will also support ForgeStar®-1, Space Forge’s first in-orbit demonstration mission, expected to launch in 2025.
These missions are critical for proving the company’s vision: a scalable and economically viable system for manufacturing high-performance materials in Low Earth Orbit (LEO), with safe re-entry and recovery back on Earth. The implications are enormous, from bolstering the semiconductor supply chain to advancing quantum computing and energy storage.
Space Forge’s technologies are designed with full reusability in mind, minimising waste and launch costs, and laying the groundwork for an accessible space manufacturing economy. This positions the company as a rare breed in the space ecosystem, fusing cutting-edge innovation with sustainability.
Areas of focus
One of the most exciting aspects of Space Forge’s offering is its climate impact. Research suggests that materials manufactured in space could lead to 75% reductions in CO₂ emissions and 60% lower energy use in key infrastructure applications. This is especially relevant for industries like semiconductors, which are both resource-intensive and geopolitically sensitive.
In fact, Space Forge claims that in-space semiconductors could dramatically reduce energy usage in computing and electronics, creating a compelling bridge between climate tech and advanced hardware. This ability to simultaneously advance technological sovereignty and environmental goals is likely a key reason behind the support from NATO and national security-focused investors.
Strategic partnerships and global ambitions
The UK spacetech is not building in isolation. The company has secured partnerships with major aerospace players such as Sierra Space and Northrop Grumman, indicating strong demand for its manufacturing platform across civil, commercial, and defence sectors.
With headquarters in Cardiff, UK, and operations in Florida, US, Space Forge is uniquely positioned to bridge transatlantic space ambitions, helping Europe and its allies achieve greater technological resilience. The company’s technology also aligns with NATO’s growing focus on dual-use innovation and the UK’s aim to solidify itself as a global leader in commercial space activity.
A catalyst for the UK space economy
This Series A represents more than just capital. It marks a significant step forward for the UK’s space ecosystem. With the likes of the British Business Bank and Cardiff Capital Region participating, the raise also highlights how regional and national stakeholders are increasingly aligned in supporting strategic tech infrastructure.
In doing so, Space Forge is helping the UK carve out a global leadership position in one of the most promising frontiers of innovation: industrial-scale space manufacturing.
As ForgeStar® missions prepare for launch and the company scales its returnable satellite systems, the future of off-Earth production is no longer science fiction but is being built in Britain.
Joshua Western, CEO & Co-Founder, Space Forge, said: “This funding marks a significant milestone-not just for Space Forge, but for the entire space economy. With the backing of our investors, we’re accelerating our mission to make space a practical and accessible platform for industrial-scale manufacturing. Our upcoming launches will prove that the future of materials innovation lies beyond Earth, helping us build a more secure, sustainable, and technologically advanced world.”
Chris O’Connor, Partner, NATO Innovation Fund, said: “We are excited to be supporting Space Forge – a company that is innovating material manufacturing, while also advancing Europe’s access to space, supply chain independence and long-term resiliency. We look forward to working with the Space Forge team to leverage their technological breakthroughs in order to secure the future of NATO nations.”
Daria Saharova, General Partner at World Fund, commented: “Demand for computing power is doubling every two months. Europe imports 80% of its chip supply, with 90% of the world’s most-advanced semiconductors coming from Taiwan. A geopolitical escalation there could have catastrophic consequences for Europe. We urgently need a resilient, homegrown supply of the next-gen supermaterials required for the future of compute. We also need this homegrown chip supply to be produced sustainably.”
Industry Minister Sarah Jones said: “This is great news for the UK’s space industry, and a vote of confidence in the cutting-edge advanced manufacturing technology Space Forge is pioneering in Wales. Our modern Industrial Strategy will drive growth in these sectors even further, giving businesses the confidence they need to commit to investing in the UK and ensuring we remain a partner of choice for space agencies around the world. Space Forge’s in-space manufactured semiconductors can reduce energy usage by 75% – by harnessing unique space conditions of microgravity, vacuum and low temperatures. We first backed Space Forge in 2021, long before the link between climate and computing was obvious. This link is clear as day now. We’re thrilled to continue supporting them as they scale, and we’re excited to welcome the NATO Innovation Fund on this journey.”
A spokesperson from the National Security Strategic Fund said: “We are pleased to participate in this funding round which recognises Space Forge as an exciting engine for growth in the UK’s semiconductor and space sector. As strategic investors, NSSIF is focused on shaping the dual-use technology ecosystem and looks forward to supporting Space Forge’s next stage of growth, in line with the ambitions of both the National Space and Semiconductor Strategies.”
Dr. Paul Bate, CEO of the UK Space Agency, said: “This landmark investment in Space Forge is a powerful vote of confidence in the UK’s growing space economy and its global leadership in space-enabled innovation. Based in South Wales, Space Forge exemplifies how cutting-edge space technology is thriving across all corners of the UK. By transforming the way we manufacture high-performance materials, Space Forge is not only pushing the boundaries of what’s possible in orbit, but will also deliver real-world benefits on Earth — from cleaner energy to more secure supply chains. We’re proud to support pioneering companies like Space Forge as they grow and help secure the UK’s position at the forefront of the space and semiconductor sectors.”
Mark Barry, Senior Investment Director, British Business Bank, said: “We’re delighted to be following on in our investment with Space Forge. We’ve been early investors through our partners but this new investment marks our first direct deal under the programme. Josh is one of the best leaders we have had the pleasure to work with and the team’s tenacity to ship product is commendable. We look forward to the launches later this year and being one step closer to enabling this critical technology for the UK.”
