??Space Tech Funding Surges 64% YoY in Q3 2024 Amid Rising Defense Investments
Space Impulse
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Happy Friday, Space Enthusiasts! ??
This week, the Space Impulse team released the 24Q3 Market Intelligence Report, a comprehensive overview offering in-depth analysis and exclusive insights into the rapidly evolving space technology sector, including details on funding, companies that emerged from stealth mode, M&A activity, government contracts, and launch statistics.
Key findings in the report include:
As the leading independent?space?data & market intelligence provider, we offer comprehensive, accurate, and real-time market and data intelligence, solely dedicated to the space industry, to navigate the complexities of the sector.
Read on to learn about key takeaways from the Space Impulse Market Intelligence Platform 24Q3 Report and your weekly news round-up.
In this edition of the Space Impulse Newsletter, you'll find:
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Event Highlights
Join us at the 26th Global MilSatCom Conference!
The countdown has begun - just four weeks stand between you and the 26th annual Global MilSatCom Conference!
This year’s conference brings five events together in one! New additions have transformed Global MilSatCom into a fully immersive experience spread over four insightful days. With the newly introduced SME Expo & Innovation Stage and Women in MilSatCom Forum, there are several opoprtunities to be a part of this exciting event where the future of military satellite communications is shaped.
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Space News Highlight ?
Billionaire Robinhood Co-Founder, Baiju Bhatt Ventures into Space-Based Solar Power with Aetherflux
Baiju B. , billionaire co-founder of Robinhood , has launched a new space-based energy startup, Aetherflux . The company aims to develop a network of satellites that will collect and transmit solar power from space to Earth. The plan involves launching a small test satellite to an altitude of about 550 kilometers by 2026 aboard a SpaceX rocket. Bhatt is currently self-funding the project and serves as Aetherflux’s CEO.
??Space Tech Funding Surges 64% YoY in Q3 2024 Amid Rising Defense Investments
Q3 2024 has brought mixed results to the global space tech industry. While some companies are thriving, others face financial and operational difficulties. As the industry continues to grow, there are signs of recovery, but challenges remain. The data in our Q3 report reflects these dynamics, highlighting where investment is flowing and what trends are emerging.
The Space Impulse team has collected and analyzed the data for Q3 2024 from the Space Impulse Market Intelligence Platform and collated the findings in the Space Impulse Market Intelligence Platform Q3 2024 Report .
Key Funding Shifts in Space Tech
Overall, investments in Q3 2024 reached $2.6 billion, a 64% year-over-year increase compared to Q3 2023. However, this large percentage growth is primarily driven by Anduril Industries ’s $1.5 billion Series F round, which represents the bulk of the quarter’s total funding. Excluding Anduril, funding levels remain stable and are consistent with Q2 2024.
Funding in the downstream sector, particularly for software-driven solutions and satellite communication infrastructure, continues to grow. AST SpaceMobile 's progress in developing space-based cellular networks and Intuitive Machines ’ NASA - National Aeronautics and Space Administration contract worth up to $4.8 billion are notable milestones. Both companies saw a noticeable rise in market cap this quarter, reflecting heightened investor confidence.
Defense and Space Tech Intersection
The defense sector's role in space tech is growing. Anduril’s $1.5 billion funding round exemplifies this, as defense companies blend capabilities in air, sea, and space. With geopolitical tensions driving defense funding, space tech companies that serve dual-use purposes—both defense and commercial—are seeing increased interest.
Successes and Challenges
A significant highlight for Q3 2024 is the continued success of SpaceX ’s Starlink, which now serves over 4 million subscribers globally. Starlink’s rapid growth highlights the increasing demand for satellite-based broadband services, solidifying its position as a major player in the global connectivity market. Its main potential competitor is the Kuiper constellation, which will be launched soon.
While Q3’s numbers look promising, many companies continue to face operational challenges, particularly those engaged in satellite manufacturing. The cost of building and launching satellites remains high, and many companies struggle with cash flow despite raising new capital. As a result, we are seeing increased consolidation in the industry, with 10 mergers and acquisitions in Q3 alone. This trend underscores growing competitive pressures on smaller players.
Looking Ahead
As we move toward the end of 2024, the space industry is navigating a steady but challenging recovery. Investor interest in software, downstream services, and launch infrastructure remains strong, but companies will need sustainable growth models to weather ongoing financial hurdles. As space becomes an increasingly vital domain, both public and private sector investments will be essential for sustaining the industry’s growth trajectory.
Want to learn more? Download the full Space Impulse Market Intelligence Platform Q3 Report here.
Looking for more insights and resources to learn about commercial, government, and academic space entities? The Space Impulse Market Intelligence Platform has captured data on the space tech industry's key companies, investors, universities and government organizations.
Space Industry Quote of the Week ??
"Even in the past years, when we’ve had [...] not only tight capital markets across the board, but also some investors who got out of the?space?game because of the burst bubble and tail ends of SPAC activity, we still did see a lot of really great companies being founded and funded and taking on really ambitious projects. I think good ideas are still being funded and funded at a really good clip rate."
- Brendan Rosseau , Research Fellow at 美国哈佛商学院 and Author of Space To Grow, discussing Space Investment Analysis Q2 2024
Weekly Space News Roundup ??
Interlagos , a new venture capital firm founded by former senior SpaceX leaders, Achal Upadhyaya , Tom Ochinero , and Spencer Hemphill , is looking to raise $550 million for its debut fund. This first-time fund aims to invest in early-stage deep tech startups, with capital deployment ranging from inception to Series B funding rounds. The partners themselves have committed to the fund, pledging a 2% general partner contribution from their personal finances. Their investment strategy is straightforward, seeking 18-25% equity stakes in the companies they back. The terms of the fund follow industry norms, with a 2% management fee and a 20-25% carry structure.
Fortius Metals Inc has closed an additional $2 million in Seed+ funding, bringing its total raised in this round to $5 million. The investment includes new backing from Finindus, a strategic investor, after clearance from the Committee on Foreign Investment in the United States. The investment will accelerate the company’s product development, including their proprietary aluminum welding wires, 6061-RAM2 and 7075-RAM2.
Impulse Space has secured a $34.5 million Small Business Innovation Research Phase III contract from the United States Space Force ’s Space Systems Command . The contract, awarded in collaboration with the Defense Innovation Unit, supports two Tactically Responsive Space missions: VICTUS SURGO and VICTUS SALO. Impulse Space will provide Mira vehicles for both missions which aim to enhance space domain awareness by demonstrating how prepositioned assets can respond quickly to on-orbit situations. The VICTUS missions are scheduled to launch in 2026.
ZAITRA has raised €1.7 million in funding led by Berlin-based Sunfish Partners to accelerate the development of its satellite autonomy solutions. The Czech space tech startup ?has already established partnerships with key players in the space industry, including the European Space Agency - ESA and the International Space Station. The round also saw participation from Czech Founders VC and angel investor Jan ?iroky, the former CTO of Czech unicorn Mews . In total, Zaitra raised €700,000 in private investments. The remaining €1 million came from public sources, primarily ESA and the Technology Agency of the Czech Republic.
Skyloom Global and Officina Stellare S.p.A have signed a letter of intent to launch a joint venture called Skyloom Europe to enhance global telecommunication networks with a focus on space and airborne optical communications. Skyloom Europe will set up a high-throughput production facility in Italy to manufacture optical communication terminals that will incorporate advanced encryption techniques like quantum key distribution (QKD), enhancing secure data transmissions. The aim is to meet the growing global demand for optical communication systems, which Euroconsult estimates will reach a market value of nearly €12 billion by 2031. Skyloom and Officina Stellare plan to keep the market informed as the joint venture progresses, with a formal agreement expected soon.
Seraphim Space , known as Generation Space in the U.S., has revealed the lineup for its 14th accelerator cohort. Since 2018, Seraphim has supported 109 companies across 30 countries, helping them raise over $540 million in funding. The latest cohort features startups from seven countries, including newcomers from Saudi Arabia, Chile, and Turkey.
Mission 14 includes notable participants like Acquora , FlyPix.AI , SPACELIS (NATO DIANA) and ROVIAL SAS.
Amentum has been awarded NASA’s Fully Integrated Lifecycle Mission Support Services II contract, valued at up to $256 million. The contract will support a wide range of NASA’s exploration and aeronautics efforts at the NASA Ames Research Center in California. Amentum’s scope of work includes support for small satellite missions, aeronautics research, and technology development with the company's role extending to high-priority initiatives such as biosciences flight development and astrobiology research.
AIKO - Infinite ways to autonomy has secured a €3.5 million investment from Deep Blue Ventures and Primo Capital , part of a larger €5 million capital raise.The boost in funds are aimed at accelerating AIKO's growth and supporting its international expansion, with a focus on France, and beginning U.S. operations by 2025. With this investment, AIKO’s total funding has reached €6.5 million.
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