Advancing UK Aerospace, Defence, Security & Space Solutions Worldwide
  • Home
  • /
  • Space
  • /
  • SpaceTech sector on track for record-breaking year of funding

Space

SpaceTech sector on track for record-breaking year of funding

The SpaceTech sector experienced another record-breaking quarter of venture financing in Q2 2021, both in terms of amounts invested and deals done, according to the latest figures from the Seraphim SpaceTech Venture Capital Index, published yesterday.

Image copyright Shutterstock

During the quarter $3.7 billion of private investment was made into the sector, up from $2.7 billion invested in Q1 2021. The record breaking $6.4bn invested in the first half of the year (H1 2021) represents nearly 85% of funding recorded for the whole of 2020. Further, investment levels over the trailing 12 months approached the $12 billion threshold for the first time. Seraphim expect this cadence to be maintained going forwards as the COVID-19 related downturn from H1 2020 is now firmly in the rear-view mirror.

Advertisement
ODU RT

A total of 172 transactions were completed in H1 2021, compared to 221 for the whole of 2020, and the sector now looks like it could eclipse the recorded highest number of deals in a calendar year, being 241, set in 2018. Q2 2021 also continued in a similar vein to the prior quarter in terms of the growing number of ‘mega deal’ financing rounds of more than $50 million, with 14 reported in the quarter.

This year has also seen a significant marked shift in public market investors’ appetite for SpaceTech companies. Before 2021, just six space companies had gone public, raising a combined $0.8 billion. However, 12 space-related businesses have announced SPAC mergers this year alone, representing more than $7 billion of investment. While satellite constellation and launch companies will continue to attract interest from the SPAC market this year to help aid new leading technologies.

James Bruegger, Chief Investment Officer of Seraphim Space, said: “The rapid growth that we saw in our last Index report for Q1 2021 has only continued to rise exponentially. The fact that 85% of last year’s record investment has been completed in the first half of 2021 shows how much pent-up market demand there is to invest in leading SpaceTech companies. The Seraphim Space Investment Trust’s oversubscribed Initial Public Offering last month provides another way for investors to gain access to this exciting market which is set for substantial growth.

“SpaceTech is at the nexus of mega-trends that will define societal change over forthcoming decades and is now playing a unique role in addressing the world’s most pressing problems. Radical advances in the space sector mean a data and connectivity tsunami is transforming the world as we know it, driving the next major paradigm shift in the global economy. The space industrial revolution is demonstrably in full swing as 34 rockets launched 573 satellites during the quarter. The new space economy is now primed for a record-breaking 2021 and beyond.”

The Seraphim SpaceTech Index Q2 2021 is available to view on https://seraphim.vc/research/#research

 

Advertisement
ODU RT

 

 

 

Advertisement
General Atomics LB
UK Moonlight team expands

Space Events

UK Moonlight team expands

18 July 2025

Viasat, SSTL and MDA Space have announced they are working together to develop designs and proposals for a lunar orbiting communications satellite system around the Moon, called Moonlight.

MDA Space UK to prime ESA and UKSA regenerative 5G D2D comms from LEO

Space

MDA Space UK to prime ESA and UKSA regenerative 5G D2D comms from LEO

16 July 2025

MDA Space Ltd today announced that it will prime SkyPhi, a new mission funded by the European Space Agency (ESA) and the UK Space Agency (UKSA) that will enable regenerative 5G direct-to-device (D2D) satellite communications from Low Earth Orbit (LEO).

University of Surrey launches Space Institute

Space

University of Surrey launches Space Institute

16 July 2025

With the UK's £19 billion space economy surging, government and industry urgently need faster research, innovation and skilled talent – yet more than half of space organisations report critical shortages, a challenge now being tackled by the newly launched Surrey Space Institute at the University of Surrey.

Pioneering programme to develop horizontal space launch

Space

Pioneering programme to develop horizontal space launch

15 July 2025

Ahead of the UK Space Conference (Manchester, 16th-17th July 2025), Frazer-Nash has announced it is leading a new research programme, known as INVICTUS, to develop a comprehensive concept design for a vehicle and its integrated systems, with the goal of building and flying a Mach 5-capable aircraft at the edge of space by early 2031.

Advertisement
ODU RT
Celestia UK starts building world’s first Ka-band multi-beam gateway

Space Events

Celestia UK starts building world’s first Ka-band multi-beam gateway

15 July 2025

Celestia UK is announcing at the UK Space Conference 2025 (Manchester, 16th-17th July 2025) that it has commenced the preproduction stage of a new generation of ground station gateway.

Bright Ascension launches strategic plan with new leadership team

Space

Bright Ascension launches strategic plan with new leadership team

14 July 2025

Bright Ascension Ltd has announced the appointment of a new CEO and the launch of its five-year strategic plan.

Advertisement
DSEI 2025