In the first-quarter, investment in the space economy grew 33% quarter-over-quarter to $6.5 billion across 103 companies, according to data from venture capital firm Space Capital.
“Companies across the space economy achieved multiple milestones in Q1 that demonstrated technical proficiency and innovation are moving beyond SpaceX to a broader set of rising stars,” said Space Capital.
Late-stage and other companies received $4.3 billion, accounting for 66% of the total figure. Infrastructure investment for the first-quarter was $2.7 billion, with VC investors accounting for 56% of capital deployed during the quarter.
First-quarter Applications investment surged 95% quarter-over-quarter to $3.7 billion.
Ten companies across the Emerging Industries raised a total of $0.1 billion in the first-quarter, with VC investors responsible for 46% of the capital raised.
The first-quarter saw limited Distribution investment and deal activity, with only $0.1 billion invested. “Continued innovation at this layer is needed to unlock value and monetize the Infrastructure being built,” noted Space Capital.
Noting Reddit’s (RDDT) successful IPO, Space Capital believes it bodes well for space companies looking to go public.
“As we look ahead to Q2, we’ll be watching for increased exit activity as the Fed’s interestrate pivot signals a potential market recovery and, as public multiples outpace private ones, we may see a surge in private market valuations,” said Space Capital.
