Report: investors invested a record amount in space startups in 2021

21 April, 2022

Research firm Bryce Tech, in its annual report on investment in space industry start-ups, reported that investment in the sector reached a record high in 2021. Investments in start-ups with satellites for broadband, as well as the means to launch such vehicles into orbit, continue to form a significant part of the space industry's inflow of funds.

Space startups received more than $15 billion from investors in 2021, surpassing the record for 2020, when the amount of funding raised reached $7.7 billion. The number of companies in the industry that attracted investments and conducted related deals has almost doubled, and the average amount received per investstraund has increased by more than a third, Advanced Television writes, citing Bryce Tech.

The significant increase in investment was due to several reasons, foremost among which analysts place the continued interest of large investment funds in the sector, which increase the size of investments in the later stages of projects, while increasing their regularity. Venture capital investment in the industry grew by 82%. The total number of venture capital deals increased by 54%. Since 2016, the average venture capital deal size for a space startup has grown to $75 million.

The second trend that allows us to talk about the revival of investment activity is the increase in fundraising through IPOs. In 2021, 10 space startups placed shares on the stock exchange through specialized companies to the amount of almost $4 billion.

In addition, a record number of mergers and acquisitions involving large holdings, startups and traditional operators contributed to the growth of investment. Analysts recorded a total of 13 such deals last year.

Bryce Tech cited the $1.8 billion in venture funding raised by SpaceX as an illustration of the trends noted, which in 2021 was the highest of any company in the space sector. After completing all funding rounds last year, SpaceX's market capitalisation, by its own estimate, exceeded $100bn. OneWeb also received $1.5bn in venture capital funding last year, mostly from investments by Bharti Enterprises and Eutelsat.

In March, the European Union proposed an independent satellite communications system in public-private partnership. The programme has a budget of €6 billion.


Sourse: telesputnik.ru, Alexey Zhdanov