Funding for space startups continues to recover as investors bet on government spending

By Akash Sriram

(JOBsNews) – Space startups attracted $2.41 billion in global investment between April and June, marking a third consecutive quarter of funding growth, according to British investment firm Seraphim Space.

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BECAUSE IT IS IMPORTANT?

This positive trend follows a period of high interest rates that had discouraged investors from funding companies involved in rockets, satellites and space data services.

Companies like SpaceX and Planet Labs have become increasingly vital as geopolitical tensions push countries to spend more on satellite imagery and assets for intelligence gathering and communications.

CONTEXT

Investments in Europe were flat from the previous quarter, while those in North America fell by about 50%. However, deals are typically announced after the end of a quarter and it is too early to tell whether a decline in the U.S. suggests a weak 2024 or a bumpy recovery, the space technology investment firm said.

The strong quarter was driven by a $943 million investment in Shanghai Spacecom Satellite Technology, the largest Chinese space technology deal to date.

This development reflects a growing determination by Chinese investors to rival US capabilities in space, the report said.

KEY QUOTE

“I am optimistic that, at least in terms of growth, the space investment market in 2025 will be better than in 2024 because, unfortunately, I do not see the geopolitical challenges around the world being resolved over the course of the next 18 months,” said James Bruegger, chief investment officer at Seraphim Space.

BY THE NUMBERS

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Global space investments of $2.41 billion in the second quarter were up from $2.39 billion in the January-March period and $1.16 billion a year earlier, according to Seraphim Space.

Space companies recorded investments worth $8.5 billion in the 12 months ending in June this year, compared with $5.1 billion in the same period last year.

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(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)