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Space Companies Gain Record Investment

By RTTNews Staff Writer   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

In their annual report, venture capital company, Space Capital showed that the space industry has gathered a record $14.5 billion of private investment in 2021, almost 50% more than it got in 2021.

The report also showed that the investment in the fourth quarter was an eye-watering $4.3 billion, a record in itself. This quarter held "mega-rounds" of investments primarily $250 million or more which were achieved by Sierra Space (1.4 billion), SpaceX (337 million) and Planer Labs (250 million).

The company divides the report into 3 categories, infrastructure, distribution, and application. Other than the "mega" investments, the private companies have gathered another $14.7 billion, Space Capital managing partner Chad Anderson wrote in the report " As we look ahead, we see tremendous opportunities to scale mass adoption of the existing infrastructure as we look for radically new approaches to build and operate space-based assets,"

Anderson also thinks that the space industry is going to be profitable as the world is now in the business and the framework is still changing. "As we look ahead, we see tremendous opportunities to scale mass adoption of the existing infrastructure as we look for radically new approaches to build and operate space-based assets," Space Capital managing partner Chad Anderson said.

However, Anderson believes that the high-interest rates are going to move up a notch due to the taxes and high-interest rates he thinks that the industry will take time to draw meaningful revenue.

"The public markets have started the year with a sell-off and, if it continues, venture firms may not find it as easy to raise record-setting funds as they did last year."


The report showed that 2021 was one of the best years for shell companies but Anderson also passed a weary message, "But not all SPACs are created equal and, unfortunately, much of the momentum we saw in 2021 came at the cost of deep diligence, which increases the risk for the investor."

It's important for investors to realize that investing in the space economy requires specialist expertise. We believe this will become more apparent in 2022 as some of these overvalued companies come back down to Earth and the quality companies rise above," Anderson added.

For comments and feedback contact: editorial@rttnews.com

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