Features

The space economy is undergoing a remarkable transformation; this explosive growth is creating a significant demand for a larger and more diverse workforce. As the industry continues to expand, it needs talented individuals with expertise in fields like engineering, science, telecommunications, and policy among others. The growing space economy will require more businesses and workers to support research, development, manufacturing, and operations. 

SpaceTech startups raised just over $535m in VC investment globally in July, led by one big investment in each of the major spacetech VC ecosystems. The U.S. and China, the two biggest ecosystems for spacetech funding so far this year, each saw one megaround. In the U.S., broadband satellite provider Astranis raised $200m for their Omega constellation, and in China (Jiangsu) Deep Blue Aerospace raised 1b RMB ($139m) for liquid recovery and reuse launch vehicles.

Many citizens and decision-makers continue to underestimate how reliant their daily lives and the economy at large have become on space infrastructure. Often, this is because the services powered or enabled by space are invisible or unknown to many. Yet satellite services have become thoroughly enmeshed with the global economy.

Six months into 2024, with just short of $4b in space-tech investments made so far this year, fascinating trends lead the way in VCs’ preference on space-tech investments. SpaceWatch has covered every investment into space-tech by VCs this year, and you can catch up on those articles here – but in the meantime, here are 5 trends to be aware of in the space-tech investing world.

After a three-month lull, and ahead of the summer venture funding lull, spacetech funding shot up in June, with 25 deals worth $737.72m. Together, the first six months of the year total $3.9b venture capital invested into space-tech, setting the industry up for a $7.8b pace on the year. A pair of Chinese startups captured nearly half of overall funding this month, with Beijing Tianbing Technology aka Space Pioneer raising 1.5b RMB ($206.37m) and Mino Space raising 1b RMB ($137.59m).

The European Space Forum 2024 seeks to showcase Europe's strategic role in the global space race, using its distinct ecosystem while navigating the intricate web of international relations. The forum's discussions help determine the future trajectory of European space activities, ensuring that Europe remains relevant and leads in numerous critical areas of space technology and exploration.

As of 2024, 9,494 active satellites are orbiting Earth according to the "Orbiting Now" statistics. The Government Accountability Office projects this number to increase to 58,000 satellites. This significant growth is driven by private sector initiatives, particularly the development of mega-constellations, with programs like Starlink being among the most extensive. The desire for more precise and secure data transmission is encouraging a wide range of institutions to engage in space-related activities.

On Friday, 23rd August 2023, moments after confirming the successful soft landing of the Vikram lander with the words “we are on the Moon,” ISRO Chairman Somnath invited Indian Prime Minister Modi to speak. Unlike September 2019, during the unsuccessful Chandrayaan-2 lander mission, Modi was not in Bangalore but in South Africa, attending a BRICS meeting. This mission, a product of national political and financial commitment, attracted international acclaim.

Five years ago, a pace of $270m per month in venture investment in the space industry would have been ground-breaking. In 2024, it’s a down month: the second lowest month of the year in terms of venture investment. Still, if the current flow of venture capital into the space industry continues at the rate of the first five months of the year, $7.6b of venture capital will have flowed into space-tech startups by the end of 2024.

Paris, 27 May 2024. ESA held a Council at Ministerial level meeting last November in Seville and just concluded on 23 May 2024 together with the European Union a Space Council meeting in Brussels. We discussed with Kai-Uwe Schrogl, ESA’s Special Advisor for Political Affairs, where the Agency stands, where success and challenges are, and what to expect in the near future.