More to come in start-up space after record year

Three significant trends are shaping the start-up space environment as we enter the 2020s. First, investors continue to pour large amounts of capital into start-up space ventures, shattering previous records as increasing numbers of investors fund more recipients.

Second, years into start-up space investment, many ventures still have yet to demonstrate profitability and sustainability, creating expectations for rationalisation and consolidation. Finally, government stake-holders are becoming an increasingly important element of the potential success of venture-funded space start-ups as many firms turn towards the government as a potential customer.

Start-up space ventures attracted $5.7 billion in financing of all types during 2019, shattering the $3.5 billion record set the previous year. This was largely driven by investors continuing to pour large amounts of capital into a handful of the industry’s largest companies.