On January 15, 2024, funding in the space industry is expected to receive a significant boost this year due to escalating tensions between the United States and China. A report by investment firm Seraphim Space revealed that startups in the sector secured $8.6 billion in investments in 2024.
China has been ramping up its efforts to compete with Western countries in areas such as satellite production and rocket launches to meet the increasing demand for space-based imaging, intelligence, and data.
Lucas Bishop, Investment Associate at Seraphim Space, stated, "This will very likely continue to drive investment towards the capitally intensive sectors of the space industry in the year ahead."
Notable transactions in the fourth quarter of 2024 included Apple acquiring a 20% stake in satellite operator Globalstar for $1.5 billion and a $1.25 billion secondary sale of SpaceX shares, elevating the company's valuation to $350 billion from $210 billion at the beginning of the year.
In November, Firefly Aerospace secured a $175 million late-stage funding round, valuing the Texas-based rocket manufacturer at over $2 billion.
The space sector is anticipated to benefit from SpaceX CEO Elon Musk's influence on the incoming Donald Trump administration, as well as the appointment of a billionaire entrepreneur and private astronaut to lead NASA.
If approved, the CEO of Shift4 Payments would oversee the space administration's $25 billion budget and future missions.
Bishop also commented, "A reallocation of funding toward more cost-effective, private-sector solutions could further boost investment in companies offering other space technologies across the board."
According to Seraphim Space, the rivalry between China and the United States is likely to escalate once Trump assumes office next week, supported by the Department of Defense's expanded Commercial Space Program funding.