Private Investment in Space Companies Hits 'All-Time High' (Comprehensive)

Venture Investment Reached $14.5 Billion Last Year... Up 50% YoY
US-China Space War Expected to Intensify Further

[Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] Last year, private investment in space companies reached an all-time high. This was the result of billionaires such as Elon Musk, CEO of Tesla and the world's richest person, and Jeff Bezos, founder of Amazon, making massive investments in space tourism, satellite internet businesses, and more. With the global power competition intensifying, the United States and China are aggressively increasing their budgets to gain an edge in space development, making this year's space race expected to be even fiercer.

According to a report by CNBC on the 18th (local time), Space Capital, a space industry venture capital firm headquartered in New York, revealed that venture investment in space infrastructure companies worldwide reached $14.5 billion (approximately 17.2912 trillion KRW) last year. This represents an increase of more than 50% compared to the previous year and is the largest annual amount ever recorded.

Space Capital surveyed 328 space companies related to infrastructure, distribution, and applications, which accounted for 3% of the total global venture capital investment last year. Over the past decade, a total of 1,694 space companies have attracted $252.9 billion in private investment through 4,303 funding rounds. Among these, companies from the United States and China led the investments, raising $116 billion (46%) and $77 billion (31%) respectively.

Infrastructure-related companies include SpaceX led by Musk, Blue Origin founded by Bezos, as well as Planet Labs, Sierra Space, and others that manufacture rockets, satellites, and space stations. SpaceX is currently conducting private space tourism and the Starlink satellite internet business, while Sierra Space is developing the low Earth orbit space station 'Orbital Reef' in collaboration with Blue Origin, the space exploration company founded by Amazon's Jeff Bezos.

Chad Anderson, managing partner of Space Capital, analyzed, "The record-breaking investment last year reflects the growing size of the space industry, creating significant opportunities from an investment perspective."

As the space competition between the U.S. and China heats up, both governments are pouring massive budgets into their space programs. China is accelerating its space ambitions with the construction of its independent space station, Tiangong, while the U.S. is also intensifying efforts to build space capabilities.

The U.S. plans to invest $100 billion by 2025 in the Artemis program, which aims to send astronauts back to the Moon. China is also investing an astronomical budget with the goal of building a lunar research base around 2027, eight years earlier than initially planned.

Although the space industry and related capital markets are expanding, there are risks due to external environmental changes. Space Capital forecasts that with rising interest rates impacting tech stocks and an increasing number of space companies failing to monetize for several years, it will be difficult to see record-breaking investments like last year.

Managing partner Anderson said, "The space industry requires long-term vision and insight for investment. This year will be a time for the market to separate the wheat from the chaff, with overvalued companies being reassessed and excellent companies recognized for their technology and fundamentals receiving renewed attention."