Shield Space, a UK defence tech start-up developing systems to protect satellites from signal jamming or attack, has raised £2m to launch its first orbital test flight.
The funding round was led by the Midlands Engine Investment Fund II through fund manager Mercia Ventures, and included Twin Path Ventures, ROI Ventures and P3A Ventures.
Shield Space’s autonomous AI guidance systems enable satellites to identify potential threats and rapidly manoeuvre out of the way. According to government figures, about a fifth of the UK economy – or £450 billion – is underpinned by space-based services such as communications and GPS. Space assets are considered critical national infrastructure.
However, incidents of satellite jamming have been increasing year on year. There is also the threat of direct attacks on satellites by hostile powers. UK Space Command believes there are now 220 counterspace systems in orbit with the potential to damage or destroy satellites, while space debris poses yet another risk.
Currently, the response to threats is often too slow as a satellite’s movements are controlled by teams at ground level. The Shield Space technology will enable satellites to manoeuvre away from threats without ground intervention.
Shield Space was founded in 2025 by Graeme Ritchie and Dan Molland, who met while working at UK Space Command. Graeme, the CEO, is a former RAF defence technology specialist who also founded drone consultancy Shield UAS Solutions, whileDan, the CTO, specialises in launch integration and has worked on payloads for SpaceX and NASA missions.
The funding will enable the company to move into new premises in Lincoln, create five new jobs and launch its first test flight in early 2027.
Graeme Ritchie, CEO, said: “Much of modern life depends on space – our adversaries understand this and deliberately exploit uncertainty and delay. Our ambition is to give the UK, NATO and its allies sovereign space capabilities to operate decisively in contested environments. Space will have its Battle of Britain moment, just as air power did in 1940. Establishing our operations in the Midlands and growing our team is critical to ensure we are ready when that moment arrives.”
Dan Molland, CTO, said: “Shield Space will not only help secure space, but also deliver significant cost savings by enabling satellites to respond in real time without access to space networks or costly operational teams. We aim to make the UK safer and stronger and establish its reputation as a credible space power.”
Amrit Sami of Mercia Ventures added: “As we embark on the start of a new space age, protecting our space assets has become a national priority. Shield Space is addressing this challenge. We are proud to be leading this investment, which will enable the team to accelerate development and ultimately to enhance the security of the UK and its NATO allies.”
Louis Taylor, CEO of the British Business Bank, said: “Backing start-ups in the manufacturing and technology sectors is a key priority for the British Business Bank. Shield Space’s technology has the potential to safeguard strategic assets in space, and this latest funding will support its first flight launch. It is encouraging to see the Greater Lincolnshire Mayor’s commitment to helping businesses in the region to start up, scale up and grow. Small businesses are the backbone of our economy, and we are pleased to help companies access the capital they need through our investment funds.”
The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides equity investment up to £5m and debt finance from £25k to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.