Cailabs raises €57 million to scale optical ground stations and push laser communications to market
- ›Cailabs announced a €57 million structured financing round led by the European Investment Bank to scale production and expand internationally.
- ›The package combines a €37 million EIB financing with €20 million from Definvest and Fonds Innovation Défense, NewSpace Capital, the EIC Fund, Starquest Capital, and CAIVE.
- ›Proceeds target industrial scale up to 50 Optical Ground Stations per year by 2027, a new industrial platform and expanded US presence in Arlington, Virginia.
- ›The company builds on an EIC-backed CROCUS project that advanced turbulence-robust laser communications for high-throughput space-to-Earth links.
- ›The deal sits at the intersection of civilian, commercial and defense demand, but scaling, supply chain and regulatory risks remain material.
Cailabs raises €57 million to scale optical ground stations and push laser communications to market
Rennes based photonics company Cailabs announced on 12 September 2025 that it has secured €57 million in structured financing to accelerate industrialisation and international expansion of its laser communications products. The round is led by the European Investment Bank and combines a €37 million financing from the EIB with €20 million from a syndicate of investors that includes Definvest and Fonds Innovation Défense managed with Bpifrance, NewSpace Capital, the European Innovation Council Fund, Starquest Capital, and CAIVE.
The financing package and planned use of proceeds
| Source | Instrument or role | Amount | Stated use |
| European Investment Bank | Financing | €37 million | Manufacturing capacity, R&D, production scale up |
| Definvest and Fonds Innovation Défense (Armed Forces ministry and Bpifrance) | Equity or fund investment | Part of €20 million tranche | Support industrial expansion and strategic sovereignty objectives |
| NewSpace Capital | Private equity co-investor | Part of €20 million tranche | Growth capital for space ecosystem scaling |
| European Innovation Council Fund | Deep tech investor | Part of €20 million tranche | Commercialisation and market scaling of disruptive photonics |
| Starquest Capital | Growth investor and historical shareholder | Part of €20 million tranche | Support continued expansion and market entry |
| CAIVE (Crédit Agricole Ille-et-Vilaine Expansion) | Regional investor | Part of €20 million tranche | Local industrialisation support |
Cailabs says the financing will support a number of specific targets. The most concrete immediate goal is to scale production to as many as 50 Optical Ground Stations annually by 2027. The company also plans to strengthen its supply chain, expand its international footprint including its U.S. operation in Arlington, Virginia, and advance product offerings such as turnkey 100 plus Gbps solutions and transportable optical ground stations.
Technology, demonstrators and the CROCUS workstream
Cailabs benefited from EIC funding through the CROCUS project between 2022 and 2024. CROCUS aimed to advance a high throughput laser communication terminal that demonstrates robustness to atmospheric turbulence. The stated ambition was to integrate such terminals into ground stations, drones, aeroplanes, ships and other platforms operating below the stratosphere. The company also references FlexiForm, a beam shaping technology in public project databases.
Market positioning and use cases
Cailabs positions itself at the intersection of commercial space communications, defence and terrestrial use cases. Laser communications are promoted by industry and some institutions as the next generation of secure, high throughput space to ground links. Potential customers include satellite operators seeking higher downlink capacity, national defence actors requiring low latency and hard to intercept links, and integrators of hybrid networks that combine fibre and free space optics.
Cailabs claims it is among the first companies to deliver low latency, reliable space to terrestrial optical links. That is plausible given early mover investments in beam shaping, but the market is competitive. Other European and US companies, plus university spinouts, are pursuing similar architectures. Successful commercialisation depends on system reliability, cost per bit delivered, regulatory approvals and integration into operators networks.
Scale up plan, recent operational milestones and manufacturing
Cailabs reports more than 10 Optical Ground Stations already under contract and says it has a new industrial platform that can assemble and validate up to five stations in parallel. The company aims to reach an output of 50 OGS per year by 2027. To support this target Cailabs intends to invest in manufacturing capabilities and to strengthen its supply chain.
On the international front Cailabs has expanded its U.S. presence. The firm relocated its U.S. headquarters to Arlington, Virginia in August 2025 and has opened a larger office in the state. The company says this demonstrates progress in cracking the U.S. market and supports large overseas contracts.
Who is investing and why this matters politically
The round mixes public and private capital. The European Investment Bank provided the largest single financing line at €37 million. French public investment entities and defence oriented funds participated through Definvest and Fonds Innovation Défense, which reflect a policy emphasis on strategic autonomy in defence and space. The EIC Fund, the European Innovation Council's investing arm, is among the co-investors, continuing support from the EU innovation apparatus.
Investor quotes in the company press material emphasise strategic importance and market opportunity. Ambroise Fayolle, Vice President at the EIB, highlighted civilian and defence uses. Nicolas Berdou from Fonds Innovation Défense and Definvest framed Cailabs as important for French sovereignty. NewSpace Capital underlined the shift and growth dynamics in the space sector. The EIC Fund called the company a pioneering photonics innovator, and Starquest referenced Cailabs performance in the U.S. market.
Scrutiny, open questions and next steps
The financing is a milestone for Cailabs and for European photonics industrialisation, but several questions remain. Scaling to 50 OGS per year is ambitious and will test supply chains and quality control processes. Delivering reliable 100 plus Gbps links in operational conditions will require continued R&D and field validation across seasons and geographies. Export controls and defence related rules may constrain some commercial pathways when equipment has dual use. Finally, competition in optical ground stations and free space optics is growing and is not limited to Europe.
Why this matters for the EU innovation ecosystem
This deal illustrates how public finance instruments are being combined with private capital to de risk scale up of deep tech hardware in Europe. The EIB and EIC Fund involvement signal a deliberate policy intent to support companies that can translate research into industrial capacity and jobs. Defence oriented funds such as Fonds Innovation Défense show that policymakers are prioritising strategic sectors where sovereignty and security objectives intersect with commercial markets. If the industrialisation succeeds it could help Europe capture more value in the space communications supply chain rather than only in downstream services.
Bottom line
Cailabs has secured material financing to pursue an aggressive scale up. The combination of public and private investors reflects both market potential and strategic policy choices. The technical foundations around beam shaping and turbulence compensation are promising, but commercial success will depend on execution across manufacturing, field validation and regulatory navigation. Observers should watch delivery timetables, win rates for major contracts, and whether unit economics improve as volumes increase.