NSR’s Emerging Space Investment Analysis, 3rd Edition report (ESIA3) released today, shows US$ 7.7 Billion in funding was raised in 2020 alone, bringing the total since 2000 to nearly US$ 36 Billion. “2020 was definitely a record year for space investment, with M&As, exits, and new rounds closing as we witnessed more enthusiasm and optimism in the prospect for the Space market” states Shivaprakash Muruganandham, NSR Senior Analyst and report lead author.
The space investment scene, currently dominated by launch companies such as SpaceX and Blue Origin, is seeing a potential equilibrium take place between investment activity from Venture Capitalists (VC), traditional investors, and governments. Analytics companies that use space-derived data make up most of the recent newcomers in the satellite ecosystem but command less funding due to their lower-capital requirements. On the other hand, Earth Observation and Communications continue to mature and require larger amounts of funding to sustain their growth and pay for their infrastructure.
Recent announcements of Special Acquisition Companies (SPAC), the speedier and less regulation-heavy version of an IPO, have brought a new wave of fresh funding but also a sign that some early investors want a satisfactory exit.
“With excess capital on the market, and time clocks on SPACs ticking down, NSR expects more space companies to go public in 2021”, explains Arthur Van Eeckhout, NSR Analyst and report co-author. “It will be very interesting to see how things pan out in the future, but right now, Space is a hot market for investors.”
