INSIGHTS / News

For early-stage UK space tech ventures, understanding where and how to access public funding is critical to accelerating development. Two of the most influential actors in this space are the European Space Agency (ESA) and the UK Space Agency (UKSA). While both support innovation across the space ecosystem, they operate differently with distinct roles, programmes and priorities. Choosing the right route (or combination) can help maximise impact and secure valuable backing.

ESA and UKSA: Partners in European and UK innovation

ESA is an intergovernmental organisation made up of 22 member states, including the UK. It supports European collaboration in space and funds a wide range of space R&D through its optional and mandatory programmes. UK entities remain eligible for ESA programmes through the UK’s ongoing membership.

UKSA is the UK government’s national space agency, focused on delivering domestic space policy, growth and strategic priorities. It works closely with Innovate UK and the Department for Science, Innovation and Technology (DSIT) to direct UK-specific funding and policy development.

Both fund innovation, but their approaches differ: ESA delivers pan-European R&D and technology acceleration, while UKSA focuses on national capability building and economic return for the UK space sector.

What kind of projects do they support?

ESA programmes tend to be focused on upstream technology (e.g. spacecraft, satellites, launch systems), though downstream applications (such as navigation and EO services) are also supported, especially via programmes like ARTES.

ESA also typically engages with projects that are closer to TRL 4–9, meaning technologies that are partially validated or close to demonstration.

UKSA, meanwhile, backs a broader range of activity, including strategic R&D, supply chain strengthening and early-stage concept development. Its grants can support work at lower TRLs, and it often works in partnership with Innovate UK to fund innovation in areas like Earth Observation, launch and in-orbit services.

Understanding the funding landscape

Some of the key ESA mechanisms include:

• ESA BIC UK – Business incubation support for space-related startups.
• ARTES (Advanced Research in Telecommunications Systems) – Focused on satellite communications innovation.
• NAVISP – Navigation programmes for positioning, navigation and timing technologies.
• GSTP and other optional programmes – Support tech demonstration and prototyping.

UKSA funding typically comes through:

• Competitive grant calls, often delivered with Innovate UK.
• Targeted partnership initiatives (e.g. National Space Innovation Programme, or NSIP).
• Strategic collaborations with other UK public sector partners or international organisations.

ESA funding often requires cost-sharing, with organisations expected to co-fund a percentage of the project. UKSA grants may be more flexible in structure, especially for feasibility or early-stage studies.

Are there overlaps or can you access both?

Yes, and many companies do. In fact, dual engagement is common and often encouraged. For example, startups may begin with a UKSA grant to de-risk early R&D and later transition into ESA programmes to access scale-up support and international networks.

That said, each agency has its own strategic objectives. UKSA is primarily focused on UK economic benefit, while ESA aims to support collaboration and capability building across Europe. It’s important to align your application narrative with the funder’s mission, and to be aware of timelines, proposal formats and co-funding requirements, which differ.

Making the right choice for your venture

There’s no one-size-fits-all route. If you’re a pre-revenue venture with a novel concept aligned to UK strategic goals, a UKSA-led programme or Innovate UK grant may be the right starting point. If you’re looking to test technology in orbit or access international collaboration, an ESA programme could offer the scale and technical validation you need.

In many cases, a combination of both is not only possible, but advantageous, enabling startups to build credibility nationally before scaling into European markets and missions.

Whether you’re just starting out or scaling up, staying informed about both UKSA and ESA programmes can help you plan your funding pathway more effectively. Be sure to keep an eye out on the Innovation Platform, official agency sites and GOV.UK for the latest calls and updates.