In the third quarter, global investments in space startups experienced a significant uptick for the first time in over a year, as outlined in a report released. Despite the typically sluggish nature of the July-September period, funding for 103 companies surged by 17% to reach $3 billion, according to the findings by venture capital firm Space Capital. This positive trend contrasts the stagnant investment landscape in the preceding quarter, which had endured a prolonged slump.

This encouraging development suggests a renewed investor interest in startups equipped to secure government contracts, rendering them less susceptible to economic instability. Such companies, crucial to space programs, are now garnering attention and financial support. Notable recipients of funding during this period included Axiom Space, which secured $350 million, and Sierra Space, benefiting from an influx of $290 million.

In the realm of space-related ventures, the infrastructure sector, encompassing the construction, launch, and operation of assets in space, has emerged as the dominant recipient of investments this year. The sector has claimed a significant share, nearly three-fourths, of the total $11.6 billion invested in the industry during this period, according to the report.

However, the prospect of a sustained recovery for the sector is overshadowed by concerns such as rising interest rates and persistent inflation. The fragile state of investor sentiment was exemplified by the volatile stock market debuts of companies like Birkenstock, highlighting the precariousness of the current financial landscape.

Some experts argue that the space industry could benefit substantially from the widespread adoption of cutting-edge technologies, particularly artificial intelligence tools. These tools have proven instrumental for geospatial companies, enabling them to analyse and interpret space-based images and data with heightened efficiency and accuracy. Such technological advancements are anticipated to play a pivotal role in reshaping the future trajectory of space-related investments.

Source: Business Standard