Q3 2022 Space Investment Quarterly
PUBLISHED
October 18, 2022
BY
Space Capital

Space technologies are playing an increasingly important role in the global economy:

  • With another $3.4B invested into 79 space companies in Q3, there has now been $267.9B of equity investment into 1,753 unique companies in the space economy over the past 10 years
  • With $151 billion closed through September and nearly $300 billion of dry powder on the sidelines, we are still waiting for the floodgates to open, as greater focus on diligence and price control as VCs shift away from pure momentum investing
  • In this risk-off environment, VC investment volume in space (particularly Infrastructure) has fallen significantly more than the broader market. In fact, Q3 is one of the lowest quarters for private investment in space over the last five years – in Q3 VC investment volume in space was down 44% vs the broader market 31%.
  • Space Capital expects the macro environment will continue to disproportionately affect funding across deep tech, including space Infrastructure. Companies with high upfront CapEx and long lead times to revenue, including Launch and Emerging Industries, are likely to be the most impacted over the next few years.
  • Space companies providing data, insights, and critical services to enterprises and governments will be better positioned to grow revenues in the near-term and have a higher likelihood of raising large growth rounds in a more selective market environment.

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