A SpaceX rocket launch timelapse. Photo: SpaceX
Space-focused startups raked in $5.7 billion in financing in 2019, far surpassing the $3.5 billion raised in 2018, according to a new report from Bryce Space and Technology.
Why it matters: The report and others like it show investors still see the industry — buoyed by investor interest and new international companies — as ripe for investment.
- "I think this is certainly showing a very dynamic market — a lot of interest in the sector," Janice Starzyk, Bryce's vice president of commercial space, told Axios.
Details: SpaceX, Blue Origin, OneWeb and Virgin Galactic accounted for about 70% of the investment tracked in the report.
- The report also shows companies outside of the U.S. are getting more investment attention than in years past, in part because of the emergence of Chinese companies breaking into the launch sector.
- "Last year, the No. 2 company would be the U.K., but now China has really shot up and is taking over as a big growth engine," Starzyk said.
Between the lines: Starzyk advises those interested in investing in space to look for opportunities beyond rocket companies — for example, companies building ground segments or other, less sexy parts of the industry.
The big picture: There are still major questions about where the space industry and investment in it will go from here, including when companies might become profitable.
- Last year also saw a number of high-profile exits from the industry — including Vector Space's bankruptcy — that are spurring fears there might be a slowdown for industry investment in the near future.