A new industry report released on Monday (July 14th) revealed that space startups continued to attract investors’ funds from April to June, making it the second strongest funding quarter on record. This trend is attributed to the optimistic outlook on the space industry as U.S. defense spending increases.
According to the report from venture capital firm “Seraphim Space,” global investments in startups (including companies from early to growth stages) surged from $20 billion in the first three months of the year to $31 billion in the second quarter ending on June 30th.
Of particular note, Series B and Series C funding accounted for 65% of total investment, setting a record and indicating strong investor confidence in the development of early-stage and growth-stage space startups.
Concerns about potential budget cuts by the Trump administration did little to dampen the momentum in funding, as major defense programs—particularly the “Golden Dome” missile defense system—have stimulated investments and boosted confidence across the industry.
Lucas Bishop, an investment analyst at Seraphim Space, stated, “Given the current geopolitical environment, the impetus from the defense sector is very strong, and founders are actively responding to it.”
The report by Seraphim Space noted that this trend is largely driven by capital-intensive sectors such as rocket launches, space infrastructure, satellite manufacturing, and operations.
It also highlighted that the $17.5 billion “Golden Dome” missile defense system plan proposed by the U.S. has increased investor confidence in the space sector, prompting new deals and collaborations among leading enterprises.
Bishop added, “More and more investors are now viewing national security as a viable end market, with government customers offering early adoption pathways, non-dilutive funding, and research and development support—advantages rarely seen in commercial markets.”
The report revealed that global transaction volume in the second quarter increased by approximately 36% compared to the first quarter, reaching 171 deals.
Headquartered in the U.S., “Impulse Space” is a company that designs, manufactures, and operates space transportation vehicles. The company secured $300 million in Series C funding, marking the largest deal of the second quarter.
(Reference: Reuters)