The overall startup activity and later-stage funding within SpaceTech is higher than ever before, according to Seraphim Space Index.
In its ‘Quarterly Review of Global Private Investment Q2 2023,’ Seraphim Space Index found signs of a potential recovery from the ebb of 2022, with the amount of SpaceTech investment in the first half of 2023 exceeding 2022.
Each of the last three quarters has set records for the highest total number of SpaceTech deals, noted the report. While mega-rounds have reduced from the highs of 2021, the overall startup activity and later-stage funding within SpaceTech are at their highest levels.
Despite a fall in investment toward the end of 2022, SpaceTech Investment has returned in the US, and the trend shows no sign of ebbing in Europe, with deal numbers growing by 60% over the twelve months between 2022 and 2023. Investment in Asia also burgeoned by almost 80%.
Approximately 16% of European deals are now focused on late-stage series funding, with around a quarter in North America (24%) and 30% of deals in Asia as SpaceTech continues to develop.
The average deal size in Q2 is $17.3 million, up from £14.3 million in Q1 2023. The median deal size has almost doubled to $8.6 million in Q2 from $4.5 million in Q1.
The number of Seed deals also witnessed a 55% increase year on year, said Seraphim Space Index.
Maureen Haverty, vice president of Seraphim Space, said, “The Space investment sector is starting to show encouraging signs of recovery from the lows of 2022. Each of the last three quarters has set records for the highest number of SpaceTech deals, with investment occurring from seed to Series C.
“The recovery started later in the US, but as expected for the dominant force in growth and space investing, we’re starting to see the return of large, growth stage rounds, like Astranis’ recent $200 million raise. The received wisdom of investors shunning capital-intensive businesses does not appear wholly accurate, with most of the growth stage capital directed towards satellite constellations and launch.”
© 2023 funds europe
