ATMOS Space Cargo has secured €25.7 million in Series A funding to accelerate the next phase of its orbital return capsule development and begin transitioning toward initial operations.
The round was co-led by Expansion Venture Capital and Balnord, with participation from the European Innovation Council and SMEs Executive Agency (EISMEA) and other investors. The funding will help the company move beyond testing and toward the operational deployment of its return services, while also supporting the creation of a dedicated subsidiary for institutional and defense customers.
At the core of ATMOS’ work is its PHOENIX family of reusable capsules, developed to enable the controlled return of payloads, hardware, and data from orbit. The company’s near-term focus is on PHOENIX 2, a vehicle designed to carry payloads of up to 100 kilograms on missions lasting up to three months. The capsule uses an inflatable atmospheric decelerator, which functions both as a heat shield and a parachute during reentry.
The new funding will be used in part to manufacture an initial fleet of three PHOENIX 2 vehicles, building on previous testing milestones, including the PHOENIX 1 demonstrator launched in 2025. Through this next phase, ATMOS aims to help establish routine orbital return capabilities in Europe, an area where several demonstrations have taken place, but where sustained commercial operations have not yet been achieved.
Alongside its short-term operational goals, the company is also beginning development of PHOENIX 3, a larger capsule expected to support payloads of up to 1,000 kilograms and enable more advanced mission profiles, including orbital transfer missions.
ATMOS is also preparing the launch of ATMOS WORKS, a new entity that will focus specifically on the needs of European government and defense customers.
Image Credits: ATMOS Space Cargo