The space economy saw a significant contraction in Q1 2023, with just $2.2B invested, the lowest quarter for space investment since 2015. This has left many companies vulnerable to funding gaps, particularly for deep tech and growth-stage businesses. The sudden failure of Silicon Valley Bank has exacerbated access to capital, as the bank was a leading provider of venture debt. The market mania of the previous two years has fully subsided, and VCs are increasingly reserving capital for companies built on strong fundamentals. Of the 100+ launch companies that collectively raised $27B over the last decade, there are currently only two that are operational: SpaceX and Rocket Lab. Several aspirational launch companies had setbacks in Q1, while some made progress. ULA, the incumbent Lockheed/Boeing joint venture, is reportedly up for sale.
