“The United States innovates while Europe regulates (and China replicates).”
That’s the kind of narrative we’ve been hearing a lot lately, especially from across the Atlantic.
- A narrative that paints Europe as a continent of red tape, not rocket ships.
- One that suggests we’re better at reinventing bottle caps than building breakout tech companies.
Case in point: here’s a recent slide from U.S.-based VC firm UP.Partners in its latest global mobility report:
But is that really the full story?
We’ve been asking ourselves the same question at TNMT.
And sure, we’re biased. We’re rooted in Europe.
But maybe that’s exactly why it’s time we use our TNMT platform to take a closer look.
- Yes, Europe may have fallen short on producing Google-, Amazon-, or Meta-sized tech giants.
- But that doesn’t mean there’s no tech magic happening here, especially in the Travel and Mobility Tech space.
In fact, we’re seeing more and more home-grown startups quietly hitting serious commercial milestones, scaling aggressively, and solving real industry problems.
So today, we’re launching a new TNMT content series.
Over the next few months, we’ll spotlight several European Travel and Mobility Tech startups that prove innovation here is not only alive, but quite literally flying!
The first of those stories awaits you below.
(And no, it’s not about bottle caps.)
Europe is on the rise
Before we jump to our first European breakout story, a few more (data-driven) signals that Europe deserves our attention.
Turns out investors are starting to agree.
According to our in-house TNMT investment tracker, European Travel and Mobility Tech startups have (for the first time in over a decade) raised more VC funding than their U.S.-based peers in 2025 (at least up until the end of May).
This isn’t just a fluke.
- Even U.S. investors are shifting focus toward European disruptors.
- As of Q1 2025, roughly one-third of all VC euros invested in European startups (across all sectors) have come from U.S.-based investors, up from just 23% three years ago.
And there’s more.
Dealroom data shows that, with this backing, Travel and Mobility Tech has emerged as Europe’s second-most funded sector in Q1, trailing only Health Tech.
So what’s fueling this momentum?
Surprisingly, it’s not just the AI wave.
Dig deeper into the European VC landscape, and you’ll find a rising force: Deep Tech.
- In Q1 2025, nearly 30% of all VC investment in Europe has flowed into startups working on heavy-duty innovation, such as real-world hardware, complex engineering, advanced robotics, and breakthrough materials.
- So it’s less about apps, more about atoms.
(Interesting sidenote: Climate tech, once the darling of the ecosystem, has cooled off, down to below 15% of total VC volume so far this year.)
This Deep-Tech movement reflects something Europe has long excelled at: industrial ingenuity and manufacturing depth.
And it’s this Deep-Tech focus that leads us to the first Travel and Mobility Tech startup we believe deserves the spotlight.
Europe’s SpaceX-in-the-making?
Our first standout company in this new series might not be entirely unknown to TNMT readers.
And to be clear: there’s no sponsorship involved–our selection is based purely on market signals.
After all, Isar Aerospace has made quite a few headlines this year.
But despite the buzz, it still doesn’t get the credit it deserves.
So let’s fix that.
Isar Aerospace is Europe’s boldest Space Tech bet and a potential SpaceX rival in the making. (Even if that’s still many rocket launches away.)
But let’s take it one step at a time.
For those not familiar, Isar Aerospace builds rockets for satellite launches.
The Munich-based startup (yep, Isar is the river running through the city) designs and manufactures its own launch vehicles, most notably the Spectrum rocket, to offer independent, cost-effective access to space for small- and medium-sized satellite operators.
Its edge?
- Full vertical integration and a commercial mindset.
- Unlike legacy space agencies or fragmented European competitors, Isar builds its own engines, systems, and infrastructure.
- That means faster iteration cycles and more competitive pricing.
It’s a European answer to SpaceX, but tailored for the booming small satellite market, as industries increasingly rely on satellite connectivity, Earth observation, and in-orbit data infrastructure.
Isar’s clients range from satellite startups and commercial operators to government agencies seeking sovereign-independent launch capacity, a concern that has grown sharply in the wake of the Ukraine war and wider geopolitical tensions.
From 30 seconds to 1 billion
Two major milestones have catapulted Isar Aerospace from Deep-Tech underdog to a serious Space Tech contender in 2025.
First, the company’s inaugural rocket launch in March.
- Yes, the flight lasted only 30 seconds before crashing back to Earth.
- Yes, German media were quick to label it a “failure.”
- But that misses the point entirely.
Because this was more than the first official test flight.
- It was the first-ever launch of a commercial space rocket from European soil, taking off from the Andøya Spaceport in Norway.
- A landmark moment for Isar, and Europe’s long-overdue ambitions in commercial spaceflight!
And while the rocket didn’t reach orbit, it did help launch something else: investor confidence.
Just two weeks ago, Isar Aerospace announced a new €150 million funding round, including backing from U.S.-based Eldridge Industries (yes, yet another sign of American VCs waking up to Europe’s Deep-Tech potential).
New unicorn spotting
While the company hasn’t confirmed it publicly, this round is likely to have pushed Isar’s valuation past the $1 billion USD mark.
Yep, a European unicorn in Space Tech. That’s rare air.
To put it into perspective:
- Only about 1% of VC-backed startups in Europe ever reach unicorn status. That means Isar is literally a 1-in-100 exception.
- For comparison, the unicorn hit rate in the U.S. is closer to 2%, which is twice as high, making Europe an even tougher playing field to break through.
Bottom line?
Even in a post-ZIRP (zero interest rate policy) world of cautious capital, Isar Aerospace is attracting major belief and backing.
And that’s exactly the kind of signal we look for in a TNMT standout.
The bigger picture
Let’s be clear: a fresh round of VC cash and a unicorn badge don’t guarantee a smooth journey to orbit.
- SpaceX burned through hundreds of millions and three failed launches before its first successful takeoff in 2008.
- And Isar is essentially 17 years behind the market leader, which, let’s be honest, is a serious gap.
But here’s the upside: Isar benefits from a far more mature ecosystem of suppliers, talent, and downstream applications.
And momentum is clearly building.
As we’ve covered before, the space hype and the rise of commercial space infrastructure are closely tied to macroeconomic forces, including global connectivity and geopolitical self-reliance.
Europe can’t afford to sit this one out.
Isar’s emergence and the broader growth in European Space-Tech funding signal a shift:
- Europe isn’t just building rockets.
- It’s building resilience!
What’s next?
Curious which other European startups are quietly reshaping the travel and mobility space?
Then stay tuned!
Our next edition zooms in on more traditional travel-tech territory, with a spotlight on a rising star shaking things up in the airline world.
