£2m seed to test autonomous AI protecting satellites from jamming and attacks
This article covers Shield Space, a UK spacetech startup, which has raised £2m in a seed funding round led by Mercia Ventures (on behalf of the Midlands Engine Investment Fund II) to finance its first orbital test flight and expand operations in Lincoln. The development aims to support deployment of autonomous guidance systems to protect satellites from jamming and physical threats, affecting national infrastructure, defence and the UK spacetech ecosystem.
Shield Space, a UK spacetech startup, has raised £2m in a seed funding round led by Mercia Ventures (on behalf of the Midlands Engine Investment Fund II) to finance its first orbital test flight and expand operations in Lincoln. The raise matters because the company is developing autonomous systems designed to protect satellites from jamming and physical threats at a time when space assets are increasingly critical to national infrastructure.
Why it matters
A fifth of the UK economy, roughly £450 billion, relies on space-based services such as communications and GPS. Incidents of satellite jamming are increasing, and UK Space Command estimates there are about 220 counterspace systems in orbit that could damage or destroy satellites. Space debris compounds the risk. Faster, onboard responses to threats could reduce outages and protect services that underpin finance, transport and defence.
Shield Space’s proposition is therefore relevant to both national security and commercial resilience: automated manoeuvring could reduce reliance on slow, ground-controlled responses and limit the operational cost of keeping satellites safe.
Inside the product
Shield Space develops autonomous AI guidance systems that let satellites detect potential threats and manoeuvre without ground intervention. The company says this allows real-time responses even when satellites lack access to wider space networks or large operational teams.
The funding will underwrite a first orbital test flight planned for early 2027, a move to new premises in Lincoln and the creation of five jobs. The founders highlight launch integration experience and defence systems expertise as core to the product proposition.
Who are the investors?
The £2m seed round was led by Mercia Ventures through the Midlands Engine Investment Fund II. Other participants named by Shield Space are Twin Path Ventures, ROI Ventures and P3A Ventures. The Midlands Engine Investment Fund II is a £400m programme covering the Midlands region, offering equity up to £5m and debt from £25k to £2m aimed at supporting technology and manufacturing businesses across the area.
Amrit Sami, of Mercia Ventures, said:
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.
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Founder perspective
Shield Space was founded in 2025 by Graeme Ritchie and Dan Molland, who met while working at UK Space Command. Ritchie is a former RAF defence technology specialist and previously founded drone consultancy Shield UAS Solutions. Molland specialises in launch integration and has worked on payloads for SpaceX and NASA missions.
Graeme Ritchie, CEO at Shield Space, 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 at Shield Space, 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.
The bigger picture
The investment sits at the intersection of defence and commercial spacetech. Seed-stage capital for orbital resilience and defensive systems reflects a growing focus on protecting the operational utility of satellites as both state and commercial activity in orbit rises. Regional funds like the Midlands Engine Investment Fund II are increasingly used to build local capabilities in manufacturing and tech, funneling public and private investment into startups outside London.
The deal also illustrates how experience in defence commands, drone operations and launch integration is being repurposed into commercial products that serve both national security and broader market needs.
The funding for Shield Space is one example of how UK investors and regional funds are targeting startups that bolster sovereign capabilities and operational resilience in orbit, a trend likely to shape the UK and European spacetech landscape as demand for satellite security grows.
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