Space tech startups’ ambitions face limits as VC advocates turn to safer bets amid economic uncertainty
Space tech startups are forced to limit their sky-high ambitions, VC firm Space Capital says, as venture capital advocates turn to safer bets due to the economic climate. the current volatile economic situation, said VC Space Capital. Decades of high inflation, rapidly rising interest rates and the Ukraine war have rattled global financial markets, forcing investors to evaluate their investment strategies and focus on companies with viable products. on the market.
Investments in space technology companies, which collect, process and analyze space-related data, fell 80% in the third quarter to around $1 billion (about Rs 8,200) from nearly $5 billion. (approximately Rs 41,200 Core) in the previous five-period, Capital space said in a report.
New York-based Space Capital said: “Venture investors are refocusing on companies that provide enterprise software services and away from deep tech companies that provide solutions based on enterprise software. technical innovation”.
VC investment volume in space companies is down 44%, compared to a 31% drop in the broader market.
Space Capital’s managing partner, Chad Anderson, told Reuters.
“This is why the infrastructure layer of the space will be hit hardest during an economic downturn.”
Optimism also affects publicly traded “new space” companies such as US Rocket Lab, Astra . space, Spire Globaland SatellogicTheir stock has fallen from 49% to 92%.
William Kowalski, co-founder of Atomos . spaceThis creates spacecraft that helps satellites maneuver in space.
“Funding was challenging, but it has allowed companies to use capital more efficiently to stand out,” he said.
© Thomson Reuters 2022
