Venture capital flowing into space startups shattered all previous records last quarter, hitting $20.8 billion as investors bet heavily on launch providers, satellite manufacturing, and orbital infrastructure.
The figure represents a nearly threefold jump from the $7.4 billion recorded in the previous quarter and doubles the former all-time high, according to Seraphim, a global investment firm tracking the sector. Even stripping out Blue Origin’s massive $10 billion raise, the remaining $10.8 billion still marks a quarterly record.
A total of 216 deals closed during the period, up from 140 in the second quarter. Seraphim analysts attribute the surge to a growing backlog of commercial contracts and government-backed initiatives rather than lingering IPO hype.
“Capital is following evidence of commercial and institutional demand,” said Lucas Bishop, vice president at Seraphim Space.
Launch and space access companies captured the lion’s share, pulling in $16.4 billion across 120 transactions. Satellite communications, Earth observation, and other space services raised a combined $4 billion.
Defense and sovereign demand increasingly underpin investment in launch, manufacturing, and orbital infrastructure as governments push for domestic space capabilities, Bishop noted.
Standout rounds included $1.37 billion for Hadrian, $1 billion for Stoke Space, and $500 million for K2 Space.
Meanwhile, publicly traded space companies struggled to match private market momentum. Bishop observed that many listed firms still operate at a loss, while SpaceX’s scale and visibility may have siphoned investor attention away from smaller public peers.
North America accounted for roughly 70% of global funding year-to-date. China posted a quarterly high of $3.3 billion across 49 deals.
Seraphim expects funding to cool from the third quarter’s extraordinary pace, though levels should remain above historical averages as more companies enter growth and scale-up phases.
