What are the fundraising trends in the space economy?
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The space economy raised $15.8 billion across 183 equity deals between 2022 and 2025, with defense applications and satellite manufacturing emerging as the dominant investment themes.
2023 marked the peak funding year at $4.6 billion, driven by Relativity Space's massive $1.05 billion round, while 2022 represented a post-SPAC correction with $2.97 billion raised.
In 2025, the sector attracted $3.47 billion across 37 deals, showing strong recovery as reusable launch and satellite bus manufacturers captured most investor attention.
And if you want to better understand this new industry, you can download our pitch covering the space economy.
Insights
- SpaceX alone captured $2.68 billion across 2022-2023, representing 17% of all space economy funding during those two years, showing extreme concentration at the top of the launch services market.
- Chinese launch startups raised over $2.5 billion in 2024-2025 combined, with state-backed funds like the National Manufacturing Transformation Fund leading multiple mega-rounds as China races to match SpaceX's reusable rocket capabilities.
- Satellite bus manufacturers K2 Space and Apex collectively raised $1.12 billion in 2025 alone, validating the thesis that declining launch costs will shift value toward spacecraft platforms rather than launch providers.
- European space startups set funding records in 2025, with ICEYE's $163 million Series E at a $2.8 billion valuation and Reflex Aerospace closing the largest European NewSpace Series A ever at $55 million.
- Defense-focused rounds dominated 2025, with Stoke Space, True Anomaly, and ICEYE explicitly raising to serve military customers, compressing commercialization timelines as companies scale directly to government procurement.
- Earth observation captured the most deals across all four years with 26 transactions, though launch services raised nearly 3x more capital due to larger average round sizes exceeding $150 million.
- The average space economy deal size grew from $87.5 million in 2022 to $93.7 million in 2025, but median deal sizes tell a different story, dropping from $23.1 million to $50 million as mega-rounds became more common.
- Founders Fund emerged as the most prolific space investor with 9 deals across the four years, backing companies from Varda Space to EnduroSat to SpaceX, showing deep conviction in space infrastructure.
- In-space transportation surged as a category in 2024-2025, with Impulse Space, D-Orbit, and The Exploration Company raising over $700 million combined for orbital transfer vehicles and cargo return capabilities.
- Ground segment companies attracted $163 million in 2025 alone, triple the 2024 level, as optical communications providers like Cailabs capitalized on megaconstellation demand for high-bandwidth downlinks.
First, how do we define the space economy?
We define the space economy as the set of activities that design, build, launch and operate space infrastructure and sell services directly based on space data, signals or connectivity.
We include manufacturers, launch providers, satellite and constellation operators, ground-segment and mission-operations providers, and companies whose primary products are satellite communications, Earth observation or navigation services.
We exclude generic consumer devices, broad media and telecom platforms, and downstream industries where space technology is only one of many inputs (such as ride-hailing, logistics or finance that merely rely on satellite navigation or timing).
This is also the definition we use in our pitch about the space economy.
In our space economy deck, we have designed useful charts to give you full market clarity
How has funding activity in the space economy changed over time?
2023 was the most active year with $4.6 billion raised across 45 deals, largely driven by Relativity Space's $1.05 billion Series F and SpaceX's $750 million round which together represented 39% of that year's total.
2022 was the least active year at $2.97 billion across 34 deals, reflecting a market correction after the 2021 SPAC boom when many major players like Relativity Space and Sierra Space sat out fundraising entirely.
Compared to 2025's $3.47 billion total, funding was down 25% from 2024's $4.79 billion, down 25% from 2023's $4.62 billion, but up 17% from 2022's $2.97 billion.
If you exclude the top two deals each year, the underlying market shows steadier growth: 2022 had $1.04 billion in remaining funding, 2023 had $2.25 billion, 2024 had $2.65 billion, and 2025 had $2.19 billion, suggesting consistent mid-market activity beneath the mega-round volatility.
If you're interested in this industry, please note that we regularly keep in touch and share funding updates for this market on this page, which we keep continuously updated.
We also make quarterly analyses of the funding activity in the space economy here.
| Year | Number of Deals | Total Raised ($) | Comment |
|---|---|---|---|
| 2022 | 34 | $2.97B | Market correction after the 2021 SPAC boom with SpaceX capturing 65% of total funding. Chinese rocket companies raised aggressively while US launch startups except SpaceX largely sat out. |
| 2023 | 45 | $4.62B | Peak funding year driven by Relativity Space's record $1.05 billion round. Launch infrastructure captured 62% of total capital as investors bet on reusable rocket technology. |
| 2024 | 67 | $4.79B | Chinese companies captured 47% of total capital led by SSST's $943 million round. European startups achieved record funding with D-Orbit, ICEYE, and The Exploration Company leading. |
| 2025 | 37 | $3.47B | Defense applications dominated with Stoke Space raising $770 million combined. Satellite manufacturing emerged as the second largest category with K2 Space and Apex leading. |
In our space economy deck, we help you understand how the market is structured
Which startups in the space economy raised the largest rounds over the last few years?
These startups raised the most over the last years in the space economy:
- Stoke Space raised $770 million across two 2025 rounds because the company's fully reusable Nova rocket and NSSL Phase 3 Lane 1 eligibility made it a prime defense investment target.
- Relativity Space raised $1.05 billion in November 2023 to fund development of the Terran R reusable rocket and scale its proprietary Stargate 3D printing manufacturing technology.
- Shanghai Spacecom (SSST) raised $943 million in February 2024 because China's government backed the Qianfan megaconstellation as the country's primary commercial competitor to Starlink.
- SpaceX raised $1.93 billion across 2022-2023 to fund Starlink expansion and Starship development, maintaining its dominant position in commercial launch services.
- Space Pioneer raised $557 million across 2024 to develop the Tianlong-3 Falcon 9-class reusable rocket as part of China's push for domestic launch capability.
- Apex raised $400 million across two 2025 rounds because defense contracts account for two-thirds of the company's business and demand for standardized satellite buses is surging.
- Axiom Space raised $350 million in August 2023 to build commercial space station modules as the successor to the International Space Station.
- K2 Space raised $360 million across 2025 rounds to scale production of high-power satellite buses optimized for next-generation heavy-lift rockets like Starship.
- Galactic Energy raised $336 million in September 2025 to fund the Pallas reusable rocket as China's leading private launch company by mission count.
- Firefly Aerospace raised $300 million across 2023 tranches to scale Alpha rocket production and advance the Blue Ghost lunar lander program with Northrop Grumman partnership.
And, yes, we do cover most of them in our our beautiful pitch about the space economy.
In our space economy deck, we answer all the common questions from investors and entrepreneurs
Is the space economy shifting toward smaller or bigger deals?
According to our own data, the average deal size in the space economy across all four years was $86.4 million, though this figure is heavily skewed by mega-rounds from SpaceX, Relativity Space, and Chinese state-backed companies.
Breaking down by year, average deal sizes were $87.5 million in 2022, $102.6 million in 2023, $84.0 million in 2024, and $93.7 million in 2025. The 2023 peak reflects Relativity Space's billion-dollar round, while 2024's lower average came despite higher total funding because deal count nearly doubled to 67 transactions.
If you exclude the top three outliers each year, the space economy shows a healthier mid-market with average deals around $35-45 million, indicating that seed and Series A activity in satellite manufacturing and Earth observation remains robust beneath the headline mega-rounds.
| Year | Number of Deals | Average Deal Size ($) | Deals Below $2M | Deals Above $50M |
|---|---|---|---|---|
| 2022 | 34 | $87.5M | 0 | 9 |
| 2023 | 45 | $102.6M | 3 | 18 |
| 2024 | 67 | $84.0M | 0 | 28 |
| 2025 | 37 | $93.7M | 0 | 21 |
| All Years | 183 | $86.4M | 3 | 76 |
In our space economy deck, we identify repeatable patterns you can use if you’re building in this market
How concentrated was funding activity in the space economy?
Funding concentration in the space economy remains extremely high, with the top deal capturing between 15% and 57% of annual funding depending on the year. In 2022, SpaceX's $1.68 billion round alone represented 56.5% of all capital raised, while 2025 showed more distribution with Stoke Space's $510 million capturing just 14.7%.
The top 10 deals consistently capture 60-90% of annual funding across all four years, meaning the vast majority of space startups compete for a relatively small pool of remaining capital. This concentration pattern suggests that space economy investors strongly favor proven players with government contracts or clear paths to profitability.
| Year | Number of Deals | % by Top 1 | % by Top 3 | % by Top 10 |
|---|---|---|---|---|
| 2022 | 34 | 56.5% | 70.4% | 90.3% |
| 2023 | 45 | 22.7% | 46.7% | 76.3% |
| 2024 | 67 | 19.7% | 34.1% | 62.8% |
| 2025 | 37 | 14.7% | 31.3% | 63.9% |
| All Years | 183 | 6.6% | 18.8% | 42.5% |
In our space economy deck, we track adoption trends and shifts in consumer behavior
Which categories in the space economy received the most funding?
Launch services dominated space economy funding with $8.6 billion raised across 42 deals (54% of total capital), driven by the massive capital requirements to develop reusable rockets. SpaceX, Relativity Space, Stoke Space, and Chinese players like Space Pioneer and Galactic Energy captured most of this funding as investors bet on next-generation launch capabilities.
Satellite manufacturing emerged as the second largest category with $2.1 billion across 32 deals (13% of total), reflecting the thesis that declining launch costs will shift value toward spacecraft platforms. K2 Space, Apex, and Terran Orbital led this category as constellation operators increasingly outsource bus manufacturing.
Earth observation ranked third with $1.3 billion across 26 deals (8% of total), with SAR satellite operators like ICEYE, Capella Space, and Umbra attracting premium valuations for their all-weather imaging capabilities. This category had the most deals of any segment, showing broad investor interest despite smaller average round sizes.
| Category | Number of Deals | Total Raised ($) | Startups and Amount |
|---|---|---|---|
| Launch Services | 42 | $8.6B | SpaceX ($1.93B), Relativity Space ($1.05B), Stoke Space ($770M), Space Pioneer ($557M), Galactic Energy ($536M), Firefly ($525M) |
| Satellite Manufacturing | 32 | $2.1B | K2 Space ($417M), Apex ($495M), Terran Orbital ($151M), EnduroSat ($153M), MinoSpace ($137M) |
| Earth Observation | 26 | $1.3B | ICEYE ($457M), Capella Space ($157M), Synspective ($144M), Unseenlabs ($92M), Umbra ($75M) |
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Who are the biggest investors in the space economy?
Founders Fund leads all space economy investors with 9 deals across the four-year period, backing companies from SpaceX to Varda Space Industries to EnduroSat. The fund's thesis centers on space infrastructure as a critical national security asset, explaining its presence in both launch services and satellite manufacturing.
Andreessen Horowitz participated in 8 deals including lead positions in SpaceX, Astranis, and Apex, demonstrating conviction that space will follow the same venture dynamics as consumer internet with a few dominant platforms capturing most value.
Seraphim Space completed 7 deals as the only dedicated space-focused venture fund in the top tier, backing ICEYE, D-Orbit, Xona Space Systems and others across both European and US markets.
Lux Capital invested in 6 deals focused on deep-tech space companies including Impulse Space and Varda Space Industries, reflecting the fund's broader thesis on frontier technology. Alpine Space Ventures also completed 6 deals as a specialist space investor backing K2 Space, Northwood Space, and Reflex Aerospace.
Point72 Ventures participated in 5 deals concentrated in satellite manufacturing, leading or co-leading rounds for Apex and Stoke Space as the hedge fund's venture arm built exposure to space infrastructure.
Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented.
| Investor | Number of Deals | Total Funded ($) | Startups |
|---|---|---|---|
| Founders Fund | 9 | $2.4B+ | SpaceX, Varda Space, EnduroSat, Impulse Space, Northwood Space |
| Andreessen Horowitz | 8 | $1.8B+ | SpaceX, Astranis, Apex, Aetherflux, Northwood Space |
| Seraphim Space | 7 | $520M+ | ICEYE, D-Orbit, Xona Space, Satellite Vu, Tomorrow.io |
| Lux Capital | 6 | $480M+ | Impulse Space, Varda Space, EnduroSat, Hadrian |
| Alpine Space Ventures | 6 | $450M+ | K2 Space, Northwood Space, Reflex Aerospace |
| Point72 Ventures | 5 | $680M+ | Apex, Stoke Space |
| Eclipse | 5 | $540M+ | True Anomaly, Ursa Major |
| Y Combinator | 5 | $350M+ | Epsilon3, Wyvern, Astranis, Stoke Space |
| RTX Ventures | 5 | $420M+ | Impulse Space, Ursa Major, Tomorrow.io |
| Lockheed Martin Ventures | 5 | $380M+ | Terran Orbital, Slingshot Aerospace, HawkEye 360, Inversion Space |
In our space economy deck, we turn research findings into simple, useful visual summaries
What are the 2026 narratives around fundraising in the space economy?
These are the dominant narratives shaping fundraising in the space economy in 2025:
- Defense budgets are now the primary growth driver for space startups, with NSSL Phase 3 and Golden Dome contracts reshaping which companies attract capital and at what valuations.
- Satellite bus manufacturers are emerging as the new platform winners, with K2 Space and Apex proving that standardized spacecraft can achieve software-like margins and repeat customer economics.
- Chinese state-backed funds are financing a parallel space ecosystem, with over $2 billion deployed to reusable rocket companies racing to match SpaceX's Falcon 9 capabilities within 2-3 years.
- European sovereign space investment is accelerating through programs like IRIS2, pushing satellite manufacturers Aerospacelab, Reflex Aerospace, and ReOrbit to scale production capacity.
- In-space transportation has matured from concept to commercial service, with Impulse Space, D-Orbit, and The Exploration Company proving unit economics for orbital transfer and cargo return.
- Ground segment infrastructure is finally attracting venture capital at scale, with optical communications providers Cailabs and Northwood Space raising to meet megaconstellation downlink demand.
- Profitability milestones are now achievable for space startups, with ICEYE and EnduroSat reaching EBITDA positive, changing investor expectations from growth-only to sustainable business models.
- Reusable launch vehicles are table stakes for new entrants, with Stoke Space, Rocket Lab, and Chinese players all racing toward full reusability as the path to competitive launch pricing.
- Space situational awareness is becoming a funded category as LEO congestion forces operators to invest in collision avoidance and debris tracking from companies like Look Up Space and Digantara.
- Vertical integration is declining as specialized suppliers in propulsion, communications, and manufacturing prove that outsourcing can reduce constellation deployment costs.
In our space economy deck, we will give you useful market maps and grids
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