Investment in space dropped 58% in 2022
According to a new report by Space Capital, a New York venture capital firm, overall investment in space dropped 58% in 2022, dropping from the $47.4 billion peak in 2021 to $20.1 billion in 2022.
Space Capital, a New York-based venture capital firm, published its Space Investment Quarterly Jan. 19 for the fourth quarter of 2022. The report notes that early-stage startups fared better than later-stage and growth companies.
One exception was SpaceX, which raised $2 billion in 2022, or 32 percent of the total 2022 private investment in space infrastructure. SpaceX was also in the minority because it raised capital in both 2021 and 2022. Only 38 percent of the space infrastructure companies that raised capital in 2021 sought additional funding in 2022.
Essentially, if you remove SpaceX from the picture, major investment in space startups largely came to a halt in 2022. Furthermore, the report states that it also expects further investment in 2023 to be parsimonious. Apparently the venture capital community has realized how risky many of these space startups are (as seen by the loss of stock value for companies like Virgin Galactic, Astra, and Virgin Orbit), and is becoming more careful where it puts its money.
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According to a new report by Space Capital, a New York venture capital firm, overall investment in space dropped 58% in 2022, dropping from the $47.4 billion peak in 2021 to $20.1 billion in 2022.
Space Capital, a New York-based venture capital firm, published its Space Investment Quarterly Jan. 19 for the fourth quarter of 2022. The report notes that early-stage startups fared better than later-stage and growth companies.
One exception was SpaceX, which raised $2 billion in 2022, or 32 percent of the total 2022 private investment in space infrastructure. SpaceX was also in the minority because it raised capital in both 2021 and 2022. Only 38 percent of the space infrastructure companies that raised capital in 2021 sought additional funding in 2022.
Essentially, if you remove SpaceX from the picture, major investment in space startups largely came to a halt in 2022. Furthermore, the report states that it also expects further investment in 2023 to be parsimonious. Apparently the venture capital community has realized how risky many of these space startups are (as seen by the loss of stock value for companies like Virgin Galactic, Astra, and Virgin Orbit), and is becoming more careful where it puts its money.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
That’s concerning.
This is why it is best to act like Elon and Bezos don’t exist, and to support old and new space alike in case one falters
I think this trend goes well-beyond space. I think it is a symptom of the general economic downturn and malaise we are experiencing.
Supporting old and new without regard to merit is supporting the cancer along with the healthy tissue.
As a small space startup, I can say that Quub has been having its share of issues with fundraising. But if you have a good team, a great plan, and remain fiscally conservative, you can get investment. Just make sure you have the ingredients to make it go and be realistic on the timetables.