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

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Akash SriramThu, July 16, 2026 at 11:04 AM GMT+2 2 min readBy Akash SriramJuly 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)Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info