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Chief satellite technologist Chris Summers completes final pre-flight checks on the Kepler-16 and Kepler-17 satellites.
Kepler Communications
Private investment in space companies, especially from venture capital, showed “signs of stabilizing” in the second quarter after sustained declines over the past year, according to a report Monday by New York-based Space Capital.
Investment in space companies has declined steadily since its peak in 2021, as companies have felt the macroeconomic effects of a tightening financing environment and rising interest rates. Layoffs and cost-cutting have hit many aerospace companies in recent months, and M&A activity in the sector is expected to pick up as valuations drop.
But the second-quarter report from Space Capital pointed to indications that the space market appears to be near a bottom, highlighting a return to hiring for space jobs to 2020 levels.
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“Resetting financial markets has improved market dynamics, enabling disciplined investors to identify opportunities and invest in high-quality companies at low valuations,” Chad Anderson, managing partner at Space Capital, wrote in the report.
The space infrastructure companies brought in $4.9 billion in private investment in the second quarter, including closing Maxar’s recent $4.1 billion private sale.
Although the Maxar deal made up the bulk of the second quarter’s total, Space Capital noted that growth-stage investments outperformed late-stage ones, with increases in the former category making up 74% of total equity rounds,” indicating higher levels of funnel. in the sector economy.
Space Capital’s quarterly report divides investment in the industry into three technology categories: infrastructure, distribution, and application. Infrastructure includes what would generally be considered space companies, such as companies that make rockets and satellites.
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