A consulting firm has recently released a report named “Start-Up Space”, where it mentioned that in the year 2018, the investment in the Space companies has been the highest it has ever been. An investment of $3 billion was made and there was no upcoming trend of a decrease in that figure.
Bryce Space, in their report researched the investments that have been made in the space industry in 2018, from debt financing to venture capital. It was found that this $3.23 billion was almost $680 million more than the previous year investment figures. The report shows that the largest deal last year worth $750 million was that of Jeff Bezos, the founder of Blue Origin. There have also been three state investments worth $200 million each, in SpaceX.
Bryce Chief Executive, Carissa Christensen said that 2018 was particularly important as there have not been any single investment worth billions. The investment patterns are more diversified now. She added that the venture capital had an overall 22 % growth rising on to $2 billion. These investors were looking forward to financial returns. These investments were not solely made with a motive that is non-financial or with deeper strategic reasons. According to her, this was a good sign as the investors are convinced that, in spite of such a limited number of companies, this sector could generate returns. She also brushed upon the overall growth in the number of investors from abroad. Although that a major portion of the investment was made by Americans, a good amount of investment was attracted from abroad, mainly China and Britain.
Investors are no more tolerant to risks as compared to twenty year back, when investors stopped their investments, after companies like Iridium and Global star applied for protection against bankruptcy. The report has not made any special predictions about the figures in 2019, but mentioned that the numbers are set to have an increasing trend.