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.
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.