Space Start-Up Investment Sees Third-Quarter Growth

Worldwide investments in space start-ups saw a rise in the third quarter for the first time in more than a year, following a months-long slump that bottomed out in a flat second quarter.

The figures indicate that investors may be looking for start-ups with government contracts as a relatively safe bet under challenging economic conditions.

During the July to September period investment rose by 17 percent to $3 billion (£2.47bn) for 103 companies, venture capital firm Space Capital said in a Monday report.

“It has long been the view that defense tech is a bad fit for venture dollars, but the challenging economic climate is proving that companies which can secure government contracts are best positioned to maintain growth,” the report said.

Conceptual illustration of ispace lunar landing. Image credit: ispace

Infrastructure

Start-up Axiom Space raised some $350m, while Sierra Space brought in $290m.

The funding has been led by the infrastructure sector so far this year, with nearly three-quarters of the $11.6bn in investments to date, Space Capital said.

It acknowledged a sustained recovery remained complicated by rising interest rates and continued inflation.

“Despite continued headwinds in financial markets, the world is waking up to the importance of space-based technologies,” Space Capital said.

Private-sector growth

Private companies have been on the rise in the sector in recent years, with SpaceX delivering astronauts to the International Space Station and launching thousands of Starlink broadband satellites into orbit.

On 6 October Amazon’s Project Kuiper launched its first two broadband satellites into orbit in the beginning of the companyu’s challenge to Starlink, while Jeff Bezos’ Blue Origin and Virgin Galactic have both taken civilians on flights into space.

In April private Japanese company iSpace attempted to land a probe on the Moon, but the mission ended in failure.

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Elon Musk Disagrees With US Tariffs On Chinese EVs

Tesla's Elon Musk confirms opposition to the Biden Administration's implementation of 100 percent tariffs on…

6 hours ago

Former Cybersecurity Boss Warns UK Not Heeding China Threat

Ciaran Martin, ex-chief executive of the National Cyber Security Centre, explains growing cyber threat posed…

8 hours ago

YouTube Threatens To Block Russian Protest Group’s Anti-War Content

YouTube threatens to pull anti-war content from Russian rights group, after complaint from Putin regime's…

9 hours ago

ICO Warns PSNI It Faces £750k Fine Over Data Breach

Police Service of Northern Ireland (PSNI) says it cannot afford a £750,000 fine from the…

11 hours ago

Apple Appeals Against EU’s $2bn Music Streaming Fine

Appeal begins appeal against European Commission's €1.84bn fine over Apple's alleged ‘anti-competitive’ music streaming restrictions

14 hours ago

OpenAI Agrees Content Deal With News Corp

Another content deal signed. Agreement reached between OpenAI and News Corp for permission to its…

15 hours ago