Silverpeak spacetech report: investment in space technologies continues to accelerate
Space technology investment enters a new phase
Silverpeak’s spacetech investment report 2021 examines the rapid growth of capital flowing into space technology. It identifies the key trends, themes and transactions reshaping what was once a government-led industry. As part of its deeptech advisory practice, Silverpeak actively advises space technology companies. The team also works with a wide range of financial investors and corporates across the sector. This report draws on that market knowledge to provide a clear overview of where the new space economy stands today.
What is driving space technology investment?
Over the past decade, the commercial space sector has changed dramatically. Reusable rocket technology has cut launch costs significantly. As a result, barriers to entry have fallen and private capital has flooded in. Venture and growth equity investors have increased their focus on space technology businesses. They are drawn by strong technical depth and large addressable markets. In addition, space capabilities now serve a wide range of commercial uses. These include climate monitoring, precision agriculture, maritime logistics and national security. Consequently, the investor base has grown well beyond traditional aerospace and defence players.
The SPAC phenomenon and its impact on spacetech
One of the most notable trends in 2020 and 2021 was the rise of the SPAC. Special Purpose Acquisition Companies became a popular financing route for space technology businesses. They allowed companies to reach public markets faster than through a traditional IPO. Furthermore, SPACs gave earlier investors a clear path to exit. However, the pace of SPAC activity also raised questions about valuations and long-term investor confidence. This report examines the SPAC trend in detail and assesses both its appeal and its risks.
Subsectors covered in this report
This spacetech investment report covers seven subsectors in depth. First, we examine launch vehicles and the growing competition between established providers and new entrants. Next, the propulsion section looks at the technologies enabling the next generation of spacecraft. Satellite communications remains one of the most active areas for investment. Large low-Earth orbit constellations have attracted capital from both strategic and financial investors. In addition, remote sensing continues to grow as demand for location data expands across commercial and government markets. The report also covers in-orbit services, an emerging segment focused on satellite maintenance and life extension. Finally, we examine the ground segment infrastructure that supports all space operations. We also include a dedicated section on the Chinese space market.
About Silverpeak’s deeptech advisory practice
Silverpeak advises high-growth technology companies across the deeptech and space technology sectors. The team works with founders, management teams and investors at key moments of strategic and financial decision-making. To find out more about our work, visit our transactions page or learn about our approach to advisory.