Space startup funding holds near record highs as SpaceX IPO draws new investors

By Akash Sriram

July 16 (Reuters) - Global investment in space startups was near record levels in the second quarter, buoyed by investor enthusiasm following SpaceX's nearly $86 billion initial public offering, according to a Seraphim Space report on Thursday.

The landmark listing has broadened investor interest beyond traditional space-focused funds, reinforcing the industry's emergence as a mainstream asset class.

It has also supported larger financing rounds for companies developing launch systems, satellite networks, defense technologies and other orbital infrastructure.

"We've seen a clear increase in investor interest over the past year, which has been supported by the SpaceX IPO, but also reflects broader investor recognition of the commercial maturity of the sector," said Lucas Bishop, investment analyst at the British investment firm.

"We are seeing increased inbound from investors with limited or no prior space exposure, who are now looking to build positions in the category."

While Bishop said the first half of 2026 represented an exceptional period for fundraising and quarterly totals may fluctuate, he said the industry's underlying investment drivers remained strong.

Investors said interest was also increasingly focused on companies serving defense and national security customers, as well as businesses developing in-space computing capabilities, reflecting expectations that governments and commercial customers will boost spending in those areas.

Space companies raised about $7.5 billion across 141 venture funding deals in the second quarter, compared with a record $8 billion across 159 deals in the previous quarter.

"We are now seeing investors put more money into larger funding rounds for established space businesses. That will mean there's more capital for companies that have already proved their technology works, that there's clear demand, and that now's the time to scale," said Felix von Schubert, executive partner at NewSpace Capital.

Investors will be watching whether Jeff Bezos' Blue Origin completes its reported plan to raise about $10 billion.

The transaction could become among the largest private fundraises in the sector's history and extend one of the strongest periods of capital formation the commercial space industry has seen.

(Reporting by Akash Sriram in Bengaluru; Editing by Shreya Biswas)