The eccentric rich man Elon Musk, whose image has been negatively affected by his own statements and activities in recent years, gained world recognition and the image of a technology industry leader in the last decade precisely in connection with the democratization of space exploration. His company, SpaceX, promised and actually achieved significant cost reductions in space exploration by developing reusable rocket systems. “SpaceX” promised to fulfill people’s dream – to conquer space.
At that time, other companies were also active, which wanted both to develop space tourism and to obtain the precious metals desired on Earth from the cosmic bodies flying in the solar system. Until recently, “Delfi Bizness” announced the plan of a Japanese businessman to open space hotels.
But the numbers don’t lie – private investors have less faith in conquering space.
Investments are shrinking
According to the analysis of the financial company “Space Capital”, private investments in the space economy decreased by 58% in 2022 compared to 2021. It should be noted that we are not only talking about companies publicly available on stock exchanges, but also about companies in which venture capital investors invest.
The Space Capital report says that external pressure on companies will be positive for the industry overall. “Quality companies with product-market fit, positive balance sheets and strong management will continue to receive funding, although valuations will be more in line with historical averages,” Space Capital managing partner Chad Anderson said in the report.
