Milan-based firm Primo Capital has announced the launch of its second space-focused fund, Primo Space 2, with a target of €120 million. The new fund will concentrate on space and dual-use technologies, building on the success of its predecessor. It has already garnered significant institutional interest, with over €70 million in expressions of interest ahead of its first close planned for after the summer.
A Legacy of Strong Returns
The launch follows the remarkable performance of the firm's first vehicle, Primo Space Fund, which established a strong track record since its inception in 2020. Its portfolio of 19 companies successfully raised a total of over €470 million, representing more than eight times the capital originally invested by the fund. This performance has positioned Primo Capital as a leading specialized investor within the European space sector.
The companies backed by the initial fund have demonstrated significant growth, creating over 600 new jobs and now employing a combined workforce of around 900 people. These enterprises have also achieved substantial commercial traction, generating more than €115 million in collective revenues. Notably, 69% of this revenue originated from international markets, highlighting their global competitiveness and reach.
Capitalizing on a Growing Market
Primo Space 2 enters a market undergoing a profound transformation, where space is increasingly viewed as critical infrastructure. This sector is foundational for communications, navigation, Earth observation, and cybersecurity, supporting a wide array of economic activities. The new geopolitical landscape is also accelerating European investment in strategic technological capabilities, expanding opportunities for startups.
The global space economy is projected to expand significantly, with McKinsey & Company forecasting its value could reach $1.8 trillion by 2035. Despite this potential, Europe faces a shortage of specialized investors capable of supporting companies from early development to later growth stages. Primo Capital aims to address this funding gap by providing crucial capital and expertise to promising ventures.
Investment Strategy and Experienced Leadership
The new fund will strengthen the strategy developed with its predecessor, increasing its investment capacity to support companies from the seed stage through to Series B rounds. Primo Space 2 will maintain a strong European focus, investing across the entire space economy value chain. This includes everything from upstream technologies to downstream applications that leverage space-based data and services.
The fund is managed by General Partners Matteo Cascinari, Ilaria Cavalleri, and Giorgio Minola, who bring years of specialized investment experience. Their team is further supported by the continued guidance of Professor Roberto Battiston, the former President of the Italian Space Agency. This combination of financial acumen and deep technical expertise is central to the fund's operational strategy.
Primo Space 2 is poised to play a pivotal role in advancing Europe's space and dual-use technology sectors. By addressing a critical investment gap, the fund aims to foster innovation and support the growth of strategically important companies. Its launch marks a significant step toward strengthening Europe's technological autonomy and competitiveness on the global stage.