TAMPA, Fla. — OQ Technology said Feb. 19 it could receive up to €17.5 million ($18.2 million) from a European Union-backed accelerator to support efforts to connect smartphones via its small satellite constellation.
The Luxembourg-based provider of narrowband connectivity for remote Internet of Things (IoT) devices said it secured a €2.5 million grant from the European Innovation Council (EIC) Accelerator program, along with up to €15 million in equity financing for its ongoing Series B funding round.
A spokesperson for the operator said all EIC equity funds would be unlocked if its Series B raises at least €15 million from other investors. The company aims to raise €35-40 million in the round, which is backed by Luxembourg’s government.
OQ Technology’s Series A round in 2022 raised about $13 million, helping the venture deploy 10 low Earth orbit satellites that connect directly to off-the-shelf monitoring and tracking IoT devices.
Last year, Luxembourg’s government awarded the venture a small contract to explore ways to connect standard smartphones from space, a challenge requiring increased satellite power and mitigation of the Doppler effect.
“OQ successfully implemented successful tests for its upgraded payload in testbed representative environment,” the company’s spokesperson said via email, adding that the first satellite should be ready for launch in 2026.
The operator says it is uniquely positioned to drive Europe’s innovation in an emerging sector currently dominated by U.S.-based providers, such as Starlink, that are already testing beta services.
Analysts forecast a potential $100 billion market for space-based services that successfully overcome technical, financial and regulatory hurdles to bridge connectivity gaps in areas beyond the reach of traditional cellular towers, enabling seamless global coverage.
