In short: new space companies usually win their first government money as a development partner, not a supplier. NASA pays through SBIR awards, Tipping Point funded Space Act Agreements and, for lunar delivery, CLPS task orders. The Space Development Agency buys satellites on fixed-price production contracts. In Europe, ESA co-funds products through ARTES and backs start-ups through its Business Incubation Centres, and the UK Space Agency, now part of DSIT, funds national programmes. Each route sets rules on ownership, data and assignment that investors and lenders will read before they read the price.
The routes at a glance
| Route | Legal form | What it pays for | What to watch |
|---|---|---|---|
| NASA SBIR and STTR | Contract under 15 U.S.C. 638 | Phase I feasibility, Phase II development, Phase III follow-on | US ownership test; 20-year SBIR data protection |
| NASA Tipping Point | Funded Space Act Agreement under 51 U.S.C. 20113(e) | Fixed milestone payments towards a technology demonstration, with a company contribution | Acceptance at NASA's discretion; assignment needs NASA consent |
| NASA CLPS | Firm-fixed-price IDIQ contract with task orders | End-to-end delivery of payloads to the Moon | Fixed price on a first-of-a-kind mission |
| Space Development Agency | Firm-fixed-price production contracts | Satellites for the Proliferated Warfighter Space Architecture | Customer concentration; termination for convenience |
| ESA ARTES | ESA contract on its General Clauses and Conditions | Up to 80% of an SME's costs (50% to 75% for larger companies) | Geographic return; national delegation support; IP notification |
| ESA Business Incubation Centres | Local incubation agreement | €50k of equity-free funding plus technical and business support | Local eligibility rules |
| UK Space Agency (DSIT) | Grant or contract | National programmes and ESA participation | Subsidy control and UK licensing |
Three things to settle before the first bid
- Who owns the company. SBIR needs majority US ownership. ESA routes need establishment in a participating state and national delegation support. A foreign investor can also trigger CFIUS, NSI Act or FCC foreign ownership reviews.
- Who owns the data. NASA, ESA and the SDA each take different licences. Mark deliverables from the first day.
- Whether the money can be borrowed against. A lender will ask whether the payments can be assigned, how termination works and what happens to the hardware. Funded Space Act Agreements and ESA contracts answer those questions differently from FAR contracts.
The rest of this guide covers the terms in a filed NASA Tipping Point agreement, the step-by-step timetable for each route, the IP and ownership traps, what investors and lenders need to see, and a first-contract checklist. It is free with a work email, along with the in-house counsel tools.
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Questions
What is a funded Space Act Agreement?
An agreement NASA makes under its other transactions authority in 51 U.S.C. 20113(e) rather than a procurement contract. NASA pays fixed amounts on milestones it accepts, and the agreement, not the Federal Acquisition Regulation, sets the terms on data, termination and assignment.
Is NASA SBIR running in 2026?
Yes. SBIR authority lapsed on 30 September 2025 and was restored by Public Law 119-83, signed on 13 April 2026, which extends the programme to 30 September 2031.
How much does ESA pay under ARTES?
Under ARTES Competitiveness and Growth, ESA funds up to 80% of an SME's costs. For larger companies it funds up to 75% in the definition and technology phase and up to 50% in the product and demonstration phase. The rest is the company's own contribution.
Does the UK Space Agency still exist?
Yes, as a brand. It stopped being an executive agency on 1 April 2026 and became part of the Department for Science, Innovation and Technology, keeping the UK Space Agency name.
Sources
- NASA: Funded Space Act Agreement with Redwire Space (Tipping Point)
- NASA: Commercial Lunar Payload Services
- govinfo: Public Law 119-83, extending the SBIR and STTR programs (13 April 2026)
- eCFR: 13 CFR 121.702, SBIR and STTR size and eligibility standards
- Federal Register: SBIR and STTR Policy Directive (2 April 2019)
- York Space Systems prospectus (Form 424B4), January 2026
- ESA Connectivity and Secure Communications: ARTES Competitiveness and Growth
- ESA Commercialisation Gateway: ESA Business Incubation Centres
- GOV.UK: UK space sector bolstered with government reforms (20 August 2025)
- govinfo: 31 U.S.C. 3727, assignments of claims
General information on public law and market practice as at 28 Oct 2026, not legal advice on any transaction.