Space Startups - statistics & facts
For many, the landing on the lunar surface of the Apollo 11 crew in July of 1969 marked the gradual end of the Space Race. However, this was actually the beginning of years of cooperation and research to explore the unknown outside our atmosphere. After some slow years in the 90s and early 2000s, the space exploration industry has refilled its tanks, lit the rockets, and is ready for liftoff. In 2022, the number of orbital space launches reached a historical record of 174, a figure expected to continue rising in the coming years.
Since the beginning of space exploration, the main players have been the government agencies (e.g., NASA, ESA, ROSCOSMOS), as the primary focus was national defense and research. In recent years, the advancement of new technologies and subsequent decrease in mission costs have been opening the door for new commercial opportunities, attracting more and more private partners.
The new window of opportunities has led to a new wave of venture capital flowing into space exploration. Since 2015, venture capital invested into space companies has remained above the 10 billion U.S. dollar margin, peaking at almost 24.2 billion U.S. dollars in 2018. Chinese and U.S. American companies have benefited the most from investments in the past decade. From 2013 to 2022, approximately three-quarters of the equity space investments have gone to companies from the U.S. or China.
The second space startup that has passed the billion U.S. dollars investment threshold is Relativity Space. As of February 2023, Relativity Space has raised 1.3 billion U.S. dollars in funding over eight rounds. According to publicly available data, their latest financing on June 8, 2021, raised 650 million U.S. dollars. The private company based in Lon Beach, California, was founded in 2015, and it specializes in manufacturing launch vehicles and rocket engines for commercial orbital services. Relativity Space aims to build the first autonomous rocket factory and launch satellite services using 3D printing, AI, and autonomous robotics. Their first launch attempt of the 3D-printed rocket (Terran 1) is expected for the first half of 2023. Terran 1 is designed to launch small satellites into low orbit.
Since the beginning of space exploration, the main players have been the government agencies (e.g., NASA, ESA, ROSCOSMOS), as the primary focus was national defense and research. In recent years, the advancement of new technologies and subsequent decrease in mission costs have been opening the door for new commercial opportunities, attracting more and more private partners.
Venturing into Space
The private sector is no stranger to the space industry. Private companies have collaborated with space agencies as suppliers of parts and services for decades, but, recently, commercial ventures are starting to take center stage in more critical roles. For example, 2021 was the first year in which three private companies (SpaceX, Blue Origin, and Virgin Galactic) achieved milestones in space travel previously reserved for space agencies, like transporting astronauts to the ISS, flying civilians into space, and delivering cargo within low earth orbit.The new window of opportunities has led to a new wave of venture capital flowing into space exploration. Since 2015, venture capital invested into space companies has remained above the 10 billion U.S. dollar margin, peaking at almost 24.2 billion U.S. dollars in 2018. Chinese and U.S. American companies have benefited the most from investments in the past decade. From 2013 to 2022, approximately three-quarters of the equity space investments have gone to companies from the U.S. or China.
SpaceX Taking the Lead
Regarding funding, SpaceX is, without a doubt, the lead receiver. As of February 2023, the company founded by Elon Musk has received 9.6 billion U.S. dollars in total. Space Exploration Technologies Corp., also known as SpaceX, was founded in 2002 with the primary goal of reducing space transportation costs to enable the colonization of Mars. In 2008, SpaceX launched its first carrier rocket, marking the first of many successful missions to follow. Reusability of rockets was an industry milestone that SpaceX achieved in 2017, with five missions successfully launched using reused launch vehicles (Falcon 9). In 2021, the Californian-based company reported 31 successful liftoffs, 29 of which were reused Falcon 9s.The second space startup that has passed the billion U.S. dollars investment threshold is Relativity Space. As of February 2023, Relativity Space has raised 1.3 billion U.S. dollars in funding over eight rounds. According to publicly available data, their latest financing on June 8, 2021, raised 650 million U.S. dollars. The private company based in Lon Beach, California, was founded in 2015, and it specializes in manufacturing launch vehicles and rocket engines for commercial orbital services. Relativity Space aims to build the first autonomous rocket factory and launch satellite services using 3D printing, AI, and autonomous robotics. Their first launch attempt of the 3D-printed rocket (Terran 1) is expected for the first half of 2023. Terran 1 is designed to launch small satellites into low orbit.
