Satellite communications startup UbiquitiLink has raised more than $12 million for its plan to launch a constellation of satellites to extend the reach of terrestrial mobile networks, the Falls Church, Virginia, company announced July 17.
The NewSpace sector is expected to grow from a $350 billion global industry in 2018 to a trillion dollar one by 2040, according to a Morgan Stanley report. Given these forecasts it is not clear how the market will expand, will there be more mergers and acquisitions, initial public offerings, initial coin offerings or just companies remaining private?
Most investors believe that the growth in funding for space ventures will continue for the near future, despite some concerns about parts of the industry and a lack of returns.
Investors continue to fund space startups at an accelerating rate, according to two firms that track activity in the sector.
Space transportation startup Momentus raised $8.3 million in seed funding for its business of offering satellite operators rides from one orbit to another, the Santa, Clara, California company announced Nov. 14.
Venture capitalists see no sign of a slowdown in funding of space-related startups even though only a handful of those companies have provided significant returns to their investors.
ICEYE raised $34 million in a Series B investment round, bringing the Finnish company’s total funding to $53 million, ICEYE announced May 24.
Despite a lack of “megadeals” involving space companies this year, investor interest in the industry remains strong thanks to several factors, according to one assessment.
A prominent venture capitalist who has been a key investor and supporter of commercial space efforts has left the firm he co-founded and is taking a leave of absence from the board of SpaceX.
The Founder Institute plans to attract would-be space entrepreneurs to its worldwide network of incubators with generous financial incentives and mentorship from industry veterans.
Rocket Lab, a U.S.-New Zealand company developing a small launch vehicle, announced March 21 that it has raised an additional $75 million that will help the company scale up production of the rocket.
Despite an influx of money being invested in space companies in recent years, investors and analysts warned that there is no guarantee this growth will continue in the coming years.
The recent boom in entrepreneurial space activity is fueling investor interest in the sector, but venture capitalists remain troubled by the number of entrepreneurs they meet who lack sound business plan.