Report: 1,000 active companies in space businesses
June 2, 2023
A report from the Eurospace Observatory says there are now more than 1000 ‘newspace’ companies actively involved in the space and space-related industries. These numbers do not include so-called downstream sectors.
Moreover, the data shows that the total fresh funding raised by these 1,000 exceeds $48 billion (€44.5bn).
Broken down, the data reveals that US and Canada companies account for some 404 businesses with $32.7 billion of funding attached to them. Europe accounts for 372 companies with $9.5 billion of funding.
Report author Pierre Lionnet says that the rhythm of new company formations has actually fallen since the peak at 2018. He also expresses concern that with the failure of Virgin Orbit – and its related losses of more than $1 billion – its fate could befall other companies in the coming years.
He is also cautious that some of these new businesses could suffer risks from overcrowding in their sectors as well as what he describes as “structural underfunding”.
Lionnet’s highest risk area is the satellite launch sector and he counts 70 companies in his “bust list” with associated losses “in the wasteland of bad management” topping $1.2 billion.