In 2021, investors poured a record $14.5 billion into space companies including Elon Musk's SpaceX

Text/Sergei Klebnikov

Case Summary:

As investors continue to be bullish on the "space economy," space companies including SpaceX and Sierra Space have collectively received nearly $15 billion in private investment in 2021, including $4.3 billion in the fourth quarter, setting a new record for the booming emerging industry.

Key facts:

A report released Tuesday by Space Capital, a New York-based angel investment platform for space technology, showed that major space infrastructure companies received a record $14.5 billion in private investment in 2021, an increase of more than 50 percent from $9.8 billion in 2020.

In the last quarter, the hottest fundraising deal in the space was Sierra Space, which raised $1.4 billion in its most recent funding round, and Elon Musk's SpaceX, which raised $337 million. In addition, Planet Labs raised about $250 million through its SPAC listing in December 2021.

According to Space Capital, a total of $252.9 billion in equity investments have been made in 1,694 different space economy companies worldwide since 2021.

Chad Anderson, managing partner at Space Capital, said in the report: "Looking ahead, we see huge opportunities for mass adoption of existing space infrastructure, and we are looking for entirely new ways to build and operate space assets. ”

The investment platform is particularly excited about SpaceX's Starship, which is expected to go live in 2022, when it will not only usher in a "new phase of space infrastructure development", but also "completely change the way we operate in space".

Notes:

While 2021 is a glorious year for the space industry, Space Capital warned that the changing market environment could have an impact on space investment activity this year. The recent boom in space ipos is likely to slow, and many of the space companies that are already going public will take years to become profitable. In addition, space companies' share prices could also be adversely affected as rising interest rates hit technology stocks and growth stocks. Anderson wrote: "The growth momentum we see in 2021 has come largely at the expense of deep due diligence, which increases the risk for investors. He added: "Not all SPAC companies are created equal. The stock market has seen a sell-off at the start of the year, and if that continues, VCs may not be as easy to raise record money as they were last year. "

Important Remarks:

Space Capital's report said: "It is important for investors to realize that investing in the space economy requires expertise. We believe this trend will become even more pronounced in 2022 as some overvalued companies return to reality and quality companies rise. ”

Translated by Vivian School Li Yongqiang