Lithuanian optical space communications startup Astrolight has closed a seed funding round at €2.8 million ($3.17m), led by frontier tech investor Balnord.

The company designs and manufactures a range of optical communications technologies for satellites, including ground terminals, intending to vertically integrate its tools and offer optical communication as a service.

“The amount of satellites and constellations is growing exponentially, but there’s still no scalable, secure way to consistently bring that data back to Earth,” Laurynas Mačiulis, CEO and co-founder of Astrolight, said in a statement. “With laser communication, we’re closing that gap.”

Mačiulis is the ex-founder and chief technology officer of Kongsberg Nanoavionics, who, along with Julijanas Želudevičius of the Lithuanian Center for Physical Sciences and Technology, and Martynas Milaševičius and Andrius Stankevičius of Vilnius Tech University, founded Astrolight in 2019.

“Humanity needs a means of communication that’s scalable over the distances of space. Optical is the fastest, most efficient, highest-spectrum, most secure method,” Mačiulis told DCD.

In the future, the company intends to develop an optical ground station and demonstrate hybrid space-to-ground and space-to-space optical communications based on the company’s existing ATLAS-1 modular design.

“We use radio frequencies now, but the RF spectrum is limited, with only about 20 percent of space-generated data retrievable,” Dalius Petrulionis, chief technology officer at Astrolight, told EU-Startups. “Laser links offer higher data rates, exceptional security, but most importantly, they can scale the bandwidth.”

Despite their remarks around vertical integration, Astrolight emphasises it does not aim to compete with other constellations or networks, instead integrating as a “complementary infrastructure layer” that delivers a high standard of interoperability with other technologies, arguing that it can have its cake and eat it in terms of technological propriety.

“Designing in-house for streamlined transmission from one link in the chain to another allows affordable, scalable communications solutions for satellite operators,” Mačiulis said.

A step toward European independence

Earlier in 2025, Astrolight launched a Danish subsidiary to enhance its commitment to the Nordics and devote resources to secure laser communications technology in the Arctic Circle, wooing Danish investors.

“We believe their experienced team has developed a truly ground-breaking optical communication technology that is essential to solving the rapidly approaching data bottleneck in space. Their high-speed, jam-resistant solutions are not only critical for the growing satellite market but also represent the kind of frontier innovation that will define the next generation of space infrastructure,” shared Jarek Pilarczyk, operating partner at Luxembourg-based Balnord.

Investors joining Balnord’s lead in the funding round included the Export and Investment Fund of Denmark, Coinvest Capital, as well as existing investors 3NGLS and Rita Sakus.

Astrolight has also been selected for NATO’s Defense Innovation Accelerator for the North Atlantic (DIANA) program, which focuses on the development of disruptive and dual-use technologies useful for defense industries.

The startup was also involved in accelerator programs for both Seraphim Space and CASSINI, and already possesses commercial contracts with CAILABS, the Lithuanian Navy, and the European Space Agency.

“Astrolight represents the type of strategic investment that Europe needs – leveraging our region’s technical excellence to build sovereign capabilities in critical infrastructure,” Marcin P. Kowalik, general partner at Balnord, said in a statement. “Secure communication technologies developed here in the Baltic Sea Region will be vital not only commercially but for Europe’s technological independence.”