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US space industry funding drops 53% in Q1, hitting 8-year low - report

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Investments in the U.S. space industry dropped 53 per cent to $2.2 billion in the three months ending March, a report said, with high interest rates and challenging market conditions making it the lowest quarter for funding the sector has seen since 2015. The steep drop in fresh capital has left many comp

Investments in the U.S. space industry dropped 53 per cent to $2.2 billion in the three months ending March, a report said, with high interest rates and challenging market conditions making it the lowest quarter for funding the sector has seen since 2015.

Space Capital's report, coming on the heels of a Chapter 11 filing from Richard Branson's Virgin Orbit Holdings Inc, tracked 89 companies active in the sector. The risk threshold to invest in space companies was much higher earlier, but given recent market uncertainty, investors may not be as risk-loving and space being a nascent sector, many are dialing back, Deutsche Bank analyst Edison Yu told Reuters separately.

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