Chief satellite technician Chris Summers completes the final pre-flight checks on satellites Kepler-16 and Kepler-17.
Kepler Communications
Reserved investment in space companies, especially from venture capital, showed “signs of stabilization” in the second quarter after constant declines over the past year, according to a report Monday by New York-based Space Capital.
Investment in space suites had dropped steadily since its peak in 2021, as companies felt the macroeconomic effects of a tightened funding environment and make good interest rates. Layoffs and cost-cutting arrived at many space companies in recent months, and M&A activity in the sector is look forward to heat up as valuations come down.
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But Space Capital’s Q2 report pointed to indicators that the gap market looks to be near a bottom, highlighting the return of hiring for space jobs to 2020 levels.
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“The reset in the financial markets has brought about healthier shop dynamics, enabling disciplined investors to identify opportunities and invest in high quality companies at lower valuations,” Interval Capital managing partner Chad Anderson wrote in the report.
Space infrastructure companies brought in $4.9 billion of squaddie investment in the second quarter, including the close of Maxar’s recent go-private sale at a $4.1 billion equity value.
Nevertheless the Maxar deal made up the bulk of the Q2 total, Space Capital noted that growth-stage investments are outstripping late-stage, with resuscitates in the former category making up 74% of total equity rounds, “signaling a healthy top-of-funnel” in the sector’s economy.
The every thirteen weeks Space Capital report divides investment in the industry into three technology categories: infrastructure, distribution and persistence. Infrastructure includes what would be commonly considered as space companies, such as firms that build shoot ups and satellites.