First Quarter Space Investment Report Released by Space Capital
Total Investment in the Space Economy was $4.3 Billion in Q1
The first quarter of 2025 was marked by a total investment of $4.3 billion, according to the Q1 2025 Space Investment Quarterly (Space IQ) report from Space Capital. The Q1 investment in 104 companies brought the cumulative private market equity investment to $347.9 billion since 2009.
"(A) recession at this point in time would be very difficult for a lot of companies."
Chad Anderson, Space Capital
The report offers a comprehensive analysis of private market startup activity and investment trends within the space economy and identifies industry trends that could have several significant implications for the space economy and related industries.
Among those trends is an increase in competition for SpaceX for orbital launch contracts. Competitors like Blue Origin, Rocket Lab, and Stoke Space are likely to drive innovation and reduce costs in the launch market. This increased competition can lead to more frequent and affordable access to space, benefiting a wide range of industries reliant on satellite deployment and space-based services, according to the report.
"The company has really enjoyed a decade of very limited competition, but alternatives are finally starting to emerge," said Chad Anderson, Managing Partner of Space Capital, in a YouTube video presentation about the report. "In January, Jeff Bezo's Blue Origin successfully reached orbit with their New Glenn vehicle. It is now halfway to being certified for national security missions. It is teed up for some of this national security money. Rocket Lab and Stoke Space were also selected to compete, alongside SpaceX, Blue Origin and ULA for National Security space launch contracts. These are billions of dollars, and more and more companies are entering that pool and competing for those dollars."
Anderson also singled out Relativity Space as a launch company that started out strong, suffered some serious funding setbacks and now has "new life" under the direction of new CEO Eric Schmidt, who previously led Google. Schmidt acquired a controlling interest in the company in the first quarter of 2025.
Other trends to watch, according to the report, are geopolitical shifts, including rising tensions between the U.S. and China; technological advances in geospatial artificial intelligence (GeoAI) and AI-driven technologies that are unlocking new capabilities in mapping, spatial intelligence, and precision positioning; and market consolidation and acquisitions.
Anderson said that a recession would be particularly challenging to the space economy, and in particular for startups. "It's been a few very difficult years for fundraising in the financial markets for startups," Anderson said. "And so a recession at this point in time would be very difficult for a lot of companies. Government contracts could shrink, or there could be delays, which could impact companies which are dependent on defense and national security spending."
The trends identified in the Q1 2025 Space IQ report highlight a dynamic and rapidly evolving space economy. As technological advancements, geopolitical shifts, and market dynamics continue to shape the landscape, stakeholders must remain agile and forward-thinking to capitalize on emerging opportunities and address potential challenges. The space sector's growth potential remains vast, driven by innovation, strategic investments, and a global vision for the future of space exploration and utilization.
Overall, the report finds that the space economy is very dynamic and evolving rapidly. But with significant investments in infrastructure, distribution, and applications, the space sector continues to offer significant opportunities for innovation and growth.