According to venture capital firm Space Capital, investment in the space economy rose 33% in the first quarter compared to the previous quarter to $6.5 billion across 103 companies.
“Companies across the space economy achieved several milestones in the first quarter, proving that technical expertise and innovation go beyond “To bring SpaceX to a broader group of rising stars,” said Space Capital.
Late-stage and other companies received $4.3 billion, accounting for 66% of the total. Infrastructure investment was $2.7 billion in the first quarter, with VC investors accounting for 56% of capital deployed in the quarter.
Investment in applications increased 95% to $3.7 billion in the first quarter compared to the previous quarter.
Ten companies in emerging industries raised a total of $0.1 billion in the first quarter, with VC investors responsible for 46% of the capital raised.
There was limited sales investment and deal activity in the first quarter, with just $0.1 billion invested. “Continuous innovation at this level is required to unlock value and monetize the infrastructure under construction,” Space Capital noted.
Space Capital takes note of Reddit's (RDDT) successful IPO and believes it bodes well for space companies seeking an IPO.
“Looking ahead to the second quarter, we will be watching for increased exit activity as the Fed's rate shift signals a possible market recovery and we may see a rise in private market valuations as public metrics outperform private ones,” Space Capital said.
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