Adrià Argemí: "We want to be the Rolls-Royce of space"

Adrià Argemí, co-founder and CEO of the aerospace company Pangea Propulsion, meets with theCompanies among bankers, presidents, and executives of the Ibex, during the Cercle d'Economia Meeting. Argemí, an engineer by training and a Europeanist by vocation, has been one of the profiles chosen by the Barcelona bourgeoisie club to speak about the topic of the year: European defense.

His company, located in the Zona Franca, manufactures "world-unique" propulsion systems for space rockets and satellites. At the beginning of the year, Pangea received recognition from the European Commission for its "technological excellence" in the European aerospace sector; and just a few weeks ago, the company reached an agreement with Indra to be its preferred supplier of propulsion systems. Argemí values the future of the space sector, the end of the "defense stigma," and Europe's ability to build its own SpaceX.

I ask him, to start, for a contradiction in terms: to land Pangea.

— They are anticipating the ecosystem that will come.

They are anticipating the ecosystem that will come.

— Correct. But it's not a simple bet. We see that more and more European launchers are thinking about the next generation of rockets, and they are looking to outsource propulsion and buy already available engines. And this is where we come in. We are Europeans, and we want to build a more competitive Europe, with sovereign access to space; but this business model is crystallizing all over the world.

And in the meantime? How will they grow while this ecosystem of specialized providers is not established?

— I was saying that Pangea's engine is unique in the world. How is it?

I said that Pangea's engine is unique in the world. How is it?

— First, we design our engines to be reusable. Elon Musk, with SpaceX, first launched the rocket and then made it reusable. We have put in this input variable. In addition, we work with engines that are 15% more efficient; and with green fuels, especially with biomethane.

Is Pangea's target market solely European by vocation? Or do they also look beyond?

— We are born in Europe, and our first clients and products are European. But the ambition is global. I always say it, we want to be the Rolls-Royce of space. It is true that there are regions where it will be more difficult.

Will states allow a technology like yours to be sold everywhere?

— For the moment, yes. But it is true that we operate in a complex sector. There are some countries that, if an offer reaches me, I could not say yes or no without consulting the Spanish or French Ministries of Defense. But there are many others, and many European allies who need our capabilities.

The European Commission has made several declarations of interest in its technology. Is this initial interest translating into concrete action?

— Steps have been taken in the right direction; especially in terms of unification, of this kind of federation of small actors that can unite in larger projects. But we still have the European problem: most countries think nationally before thinking about Europe. As Europeans, we should all go in unison, regardless of the pressures each country may exert.

They raised a series A round of 23 million last year, and all the capital is still European. Will the series B round also be only European?

— I hope so. Europe believes it can have major global tech competitors, but we forget that, if we want to get there, we will have to invest. And that is still lacking. And returning to the European vision, it has happened to me: a German deep tech fund, for example, does not invest outside of Germany. The North American venture capital ecosystem knows that, to go far, it has to invest a lot. And that it will fail 80% of the time. And it doesn't matter, because the 20% that moves forward will be worth it.

Why is this happening? Is there no capital?

— I don't think so. Many people believe that there is no money in Europe. False! In Europe there are large state pension funds. The problem is the lack of leadership, and risk aversion. If Europe wants a company like Pangea to succeed, it will need large public contracts to stabilize it, to make it predictable. And, if we create these examples here, exporting them will be much easier. But there is capital, and there are more and more specialist funds in deep tech. And, even more so, in growth rounds for deep technology. Therefore, rounds of hundreds of millions of euros are increasingly less frightening.

Is it problematic to seek capital outside of Europe in a sector linked to defense?

— 100%. We are a dual-use technology, and the line is very fine. In the defense sector, there is much more regulation. And we, as a potentially strategic company, will not be able to have just any capital; even if, as an entrepreneur, it might interest me. Therefore, it may be – I hope not, but it may be – that a moment comes when I cannot access capital from outside Europe due to this strategic nature.

The commitment of corporations is also necessary, and here comes your agreement with Indra as a preferred supplier. What does it mean for Pangea?

— Has public perception of defense as a sector changed?

Has public perception of defense as a sector changed?

— I am biased because I see it from the inside. Having made the leap from the civilian sector to this industry has also changed my perception. But I notice it in my personal life: when I'm having dinner with friends, I notice that the discourse is different. It is perceived that the defense industry is, in fact, a defense of our values, of the welfare state. And not many years ago, this was unthinkable. Defense remained behind closed doors. Now there is a little more detail, more nuance in the assessment.

What can we expect from the aerospace sector, as dual-use technology, in the coming years?

— What is the sector doing to break the defense taboo?

What is the sector doing to break the defense taboo?

— What can we expect from Pangea, now that it's on the verge of a scale jump?

What can we expect from Pangea, now that it is on the verge of a scaling leap?

— I hope to continue with the growth we have had so far, which we have managed to make progressive; more or less organic. For the market to try our technologies. If all goes well, the first space mobility technologies will be tested next year. And, from now on, to achieve that any company in the space sector thinks of Pangea when it needs propulsion. Therefore, Pangea in five years will have products to guarantee strategic, military, and civil sovereignty, with technology developed from here.

And the future of Europe? Will it be possible to have a European SpaceX?

— I think so. Well, the SpaceX formula as we know it now, as a 100% vertical company, no. But a European version, if we unite the strengths that each one has, I see it as possible. I am deeply Europeanist, and deeply optimistic. I suppose I have to be to start a business; otherwise, I wouldn't have done it! I don't know if in five years Europe will have a SpaceX as such; but yes, one, or several potential giants to serve the needs of the entire continent.