Space startups saw a surge in funding during the second quarter of 2023, attracting $2.41 billion in global investments. This marks the third consecutive quarter of growth, driven by increased government spending and geopolitical tensions.
Investors are betting on the growing demand for satellite-based imagery and communications, fueled by global conflicts and a desire for space-based intelligence gathering.
While European investment remained flat, North American funding dropped by 50%. However, experts believe this might be a temporary setback, with the overall trend pointing towards a robust recovery in the space sector.
The largest deal of the quarter was a $943 million investment in Shanghai Spacecom Satellite Technology, showcasing China’s ambitious plans to rival the US in space technology.
Despite the challenges, the space industry appears poised for further growth, with experts predicting even stronger investment in 2025. This optimistic outlook is fueled by the ongoing geopolitical instability and the increasing importance of space capabilities.