Space investment more than doubled to $23 billion in year to June, report says
FILE PHOTO: An evening launch of a SpaceX Falcon 9 rocket carrying 22 Starlink satellites to low-Earth orbit is seen over the Pacific Ocean from Encinitas, California, U.S., April 1, 2024. REUTERS/Mike Blake/File Photo/File Photo
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Sept 23 : Private investment in space companies globally climbed to $23 billion in the year through June, more than double the $9.7 billion raised a year earlier, according to a report by Relm Insurance and British investment firm Seraphim on Wednesday.
SpaceX’s June IPO has reshaped the funding landscape for the sector, drawing in new investors as venture firms look for the next space company capable of a similar payoff.
Investors are funneling capital toward companies that can show operational proof rather than early-stage promise, with the space economy moving from “hype to commercial reality”, according to the report covering Earth observation (EO), in-orbit manufacturing and satellite supply chains.
“EO is already an established category — the tech is well established, if still improving,” said Andrew Bonwick, Relm’s VP of Product Development.
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“The real value is in the analytics. Customers buying these services don’t think of them as space services — they’re sold on what they actually want: where are my ships, when should I plant my crops, is that refinery switched on, where’s at risk of wildfire.”
Capital grew more selective toward Earth observation companies with visible revenue and experienced leadership, the report said.
In-orbit manufacturing is still in its early days, held back by limited ways to launch and bring products back to Earth, with some companies merging while others struggle to grow beyond small pilot projects.
Satellite supply chains have grown more complicated as production increases, pushing companies to bring more of their manufacturing in-house to control costs and reduce reliance on outside suppliers.
Traditional insurance policies often don’t fit these smaller, experimental space projects, creating demand for new types of coverage, the report said.
Source: Reuters
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