Investment in Space Industry Declines by 53 Percent in Q1, Reaching 8-Year Low

The SpaceX Starship on its Boca Chica launchpad following a postponement in its launch date due to a frozen valve, after the U.S. Federal Aviation Administration granted a long-awaited license allowing Elon Musk's SpaceX to launch the rocket to orbit for the first time, near Brownsville, Texas, on April 18, 2023. Go Nakamura/Reuters

There was $2.2 billion invested in space companies in the first three months of 2023, which means a 53 percent decline from the previous quarter and the lowest quarter for space investment since 2015.

According to a report from venture capital firm Space Capital on Thursday, the decrease in investment left many companies in a vulnerable state, while Silicon Valley Bank’s collapse has added to the challenge, as the bank was a leading provider of venture debt.