Global Funding for Space Start-Ups Reaches $2.41 Billion in April-June Period: Report

This upward trend reportedly comes after a phase of high interest rates that had previously discouraged investments in rocket, satellite, and space-based data service companies.

Outlook Start-Up Desk

Updated on: 11 July 2024 1:35 pm

From April to June, space start-ups secured $2.41 billion in global investments. According to Seraphim Space, a British investment firm, this marks the third straight quarter of funding growth. This is as per a report by Reuters.

This upward trend comes after a phase of high interest rates that had previously discouraged investments in rocket, satellite, and space-based data service companies, according to the report.

With the increasing importance of satellite imagery and communication assets, there has been a growing importance for firms like SpaceX and Planet Labs. Some of the prominent space start-ups around the world include Firefly Aerospace, ClearSpace, Isar Aerospace, and others.

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Read: Profitability on Track for Start-Ups as Investors curtail Expenditure

According to Seraphim Space, global space investments reached $2.41 billion in the second quarter. This surpassed the $2.39 billion investment from January to March and the $1.16 billion investment from the same period last year, according to the report.

James Bruegger, chief investment officer at Seraphim Space, told Reuters, “I'm optimistic in predicting that, at least in terms of growth, the space investment market in 2025 is going to be better than 2024 because, unfortunately, I don't really see the geopolitical challenges around the world resolving themselves in the course of the next 18 months.”

In India as well, there has been a surge in space start-ups. Union Minister Dr. Jitendra Singh said last year that the number of space start-ups has increased from 1 in 2014 to 189 in 2023, as per the DPIIT Start-Up India Portal.

Additionally, Singh said that the Indian space economy is expected to grow from around $8.4 billion to $44 billion by 2033. One space start-up that has been widely prominent in the country has been Agnikul. In June this year, the space start-up created history when it launched "Agnibaan-SSOrTeD," the first rocket in history to be fueled entirely by a 3D-printed engine.