Iceye, the Finnish satellite company increasingly embedded in Europe’s defense strategy, has raised new capital at a €2.4 billion ($2.8 billion) valuation. The round, led by US venture firm General Catalyst, includes €150 million in fresh equity and €50 million in secondary sales for early investors.

CEO Rafal Modrzewski said Iceye reached profitability this year, but accelerating satellite launches has become critical amid Europe’s rapid military build-up following Russia’s invasion of Ukraine. “Nobody wants Europe to be ready in five years,” he said. “People want Europe to be ready tomorrow.”

Founded in 2014, Iceye originally focused on environmental monitoring before shifting to defense. Its synthetic aperture radar (SAR) satellites can capture high-resolution images through clouds, smoke, and darkness – capabilities increasingly sought after by governments. The company has secured deals with the US, UAE, Japan, and, more recently, a growing list of European armed forces including Poland, Portugal, Finland and the Netherlands. Two more agreements in Europe are under discussion.

To expand production capacity, Iceye formed a joint venture with German defense group Rheinmetall AG earlier this year. Rheinmetall expects up to €2 billion in satellite-related orders in upcoming quarters tied to the partnership.

General Catalyst, now one of Europe’s most active defense investors, will take a board seat through its head of Europe, Jeannette zu Fürstenberg. “It’s one of the fastest-moving segments in defense and government procurement,” she said.

Iceye launched 25 satellites this year and plans to scale to one per week next year. Revenue is expected to exceed previous forecasts after Modrzewski projected earlier that sales would double to more than €200 million in 2025.

The latest round drew institutional support from AP Møller Holding, Bpifrance, Finnish investors, and several Polish backers including BGK’s investment arm and the family office of InPost founder Rafal Brzoska. Iceye has raised €600 million to date.

With fresh capital, the company plans to strengthen its software and data-analysis tools, aiming to provide clients with real-time intelligence. “At the end of the day, nobody buys satellites just to own satellites,” Modrzewski said. “People want to understand what their enemy is doing – and what they’re about to do.”