By Akash Sriram

(Reuters) – Space startups attracted $2.41 billion in investment globally from April to June, according to British investment firm Seraphim Space, marking the third consecutive quarter of growth in funding.

WHY IT IS IMPORTANT

This positive trend follows a period of high interest rates that discouraged investors from financing companies involved in rockets, satellites and space-based data services.

Companies like SpaceX and Planet Labs have become increasingly important as geopolitical tensions push countries to spend more on satellite imagery, intelligence gathering and communications tools.

CONTEXT

Investments in Europe were flat on the previous quarter, while in North America they fell by about 50%. However, deals are often announced after the end of a quarter and it is too early to say whether a decline in the United States points to a weak 2024 or a bumpy recovery, the space technology investment firm said.

The strong quarter was driven by a $943 million investment in Shanghai Spacecom Satellite Technology, the largest Chinese space deal to date.

The development reflects growing determination among Chinese investors to compete with US space capabilities, the report said.

KEY QUOTE

“I am optimistic and predict that the space investment market will grow better in 2025 than it did in 2024. Unfortunately, I do not predict that the geopolitical challenges in the world will resolve themselves in the next 18 months,” said James Bruegger, Chief Investment Officer at Seraphim Space.

IN NUMBERS

According to Seraphim Space, global space investment in the second quarter was $2.41 billion, up from $2.39 billion in the January-March period and $1.16 billion a year earlier.

Aerospace companies saw investment of $8.5 billion in the 12 months to June this year, up from $5.1 billion in the same period a year earlier.

GRAPHIC

(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)