Amid economic downturn, space investment plummeted in 2022

News Summary

  • By this yardstick, many of the space companies that have gone public via the SPAC process did so prematurely—not just pre-revenue, but in some cases pre-product.Some of these companies, such as Virgin Galactic, Virgin Orbit, and Momentus, still lack a viable commercial product years after going public.
  • These companies will be ready to go public, via a traditional initial public offering, within a few years.As for other notable tidbits in the report, Anderson called attention to SpaceX's capital raise of $2 billion in 2022, the company's second-largest annual raise.
  • Chinese companies have attracted 35 percent of all Space Applications investments, for example, compared with 41 percent for US companies.
  • This is being driven by China's e-commerce and location-based services boom.Looking ahead to 2023, Anderson sees another difficult year for space startups due to the lack of investment capital available for small companies to draw upon.
  • While these companies may have needed public funding to survive their early development years, this additional scrutiny has made innovating much more challenging.
  • Moreover, he said, there are some "incredible" space companies that have been working in the background for several years.
Enlarge/ Sir Richard Branson took to the sky in the summer of 2021. But since then, with no additional spaceflights, Virgin Galactics stock has taken a nose dive.1 with 0 posters participatingPr [+3831 chars]