December 11, 2023

Senior Satellite Technician Chris Summers completes the final pre-flight inspection of the Kepler-16 and Kepler-17 satellites.

Kepler Communications

Private investment in space companies, especially from venture capital, showed “signs of stabilization” in the second quarter after falling steadily over the past year. a report New York-based Space Capital on Monday.

Investments in space companies have fallen steadily since peaking in 2021 as companies feel the macroeconomic impact of tighter funding conditions and rising interest rates. Many space companies have cut jobs and cut costs in recent months, and mergers and acquisitions in the sector are expected to pick up as valuations fall.

But Space Capital’s second-quarter report pointed to signs that the space market appears to be nearing a bottom, highlighting that hiring for space jobs has returned to 2020 levels.

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Chad Anderson, managing partner of Space Capital, wrote in the report: “The reset in financial markets has brought about healthier market dynamics, allowing disciplined investors to identify opportunities and invest in high-quality stocks at lower valuations. company of.”

Space infrastructure companies brought in $4.9 billion in private investment in the second quarter, including the recent take-private sale of Maxar for an equity value of $4.1 billion.

While the Maxar deal accounted for the majority of the second-quarter total, Space Capital noted that growth-stage investments are outpacing late-stage investments, with the former category accounting for 74% of total equity funding, “marking a healthy top investment” funnel in the sector’s economy “.

The Space Capital quarterly report breaks down investment in the industry into three technology categories: infrastructure, distribution, and applications. Infrastructure includes companies that are often considered space companies, such as those that make rockets and satellites.