Investments in space technology companies, which collect, process and analyze space-related data, have dropped 80 percent in the third quarter to about $1 billion from nearly $5 billion in Q3 2021, venture capital firm Space Capital said in a report.
The chart is about investment in space tech firms in Q2 2022.
“Venture Capitalists are refocusing on enterprise software-as-a-service companies and away from deep tech companies that provide solutions based on engineering innovation,” New York-based Space Capital said.
VC investment volume in space companies fell 44 percent, compared with a broader market decline of 31 percent.
VC firms are looking to reduce their exposure to capital intensive companies with low or long-term profitability models, Space Capital’s managing partner, Chad Anderson, told Reuters.
The downbeat sentiment has hit publicly traded space tech companies such as Rocket Lab USA, Astra Space, Spire Global and Satellogic, whose shares have fallen between 49 percent and 92 percent.