According to CNBC, the space industry is valued at $350 billion and could reach $1.1 trillion by 2040. This says a lot about the possibilities that are found in this industry. Therefore, it shouldn’t surprise anyone that there are investors willing to invest in this business. And today we’ll know why.

Investors and their interest in the space sector

Let’s start by saying that the space age is still ongoing and is more valid than ever. To give us an idea, we have an article by CNBC that talks about the subject. This tells us that some 120 companies made investments in the space sector in 2017. Something that since then has attracted a lot of attention.

It’s reported that this interest began, as far as we know, since 2009. Venture capital investments began that year and gradually grew to reach considerable numbers. The investment line began to grow from 2011 and reached maturity in 2013, 2015 and 2017.

Venture capital space sector
A graph that shows the number of venture capital investments in the space sector since 2009. Source: CNBC

According to this information, there’s selectivity in relation to the funded space companies. Or rather, they have to meet certain criteria in order to qualify for this financing. One of them is having been developed by a for-profit entity built with venture capital.

Taking this into account, it’s worth observing why these investments have occurred. It turns out that every year investors take more and more interest in the space sector. Especially when many of them are achieving very considerable achievements. As for example, SpaceX.

Advances in the space sector that attract investments

SpaceX is an aerospace transport company founded by Elon Musk. It’s one of the most outstanding ones in this field, especially as it’s a private company not affiliated with the American government. And just as there are others, such as Blue Origin, created by the founder of Amazon CEO Jeff Bezos.

According to an article in Apertura.com, these two companies began to be financed since the year 2000. And according to data from the Bryce Start Up Space 2017, they obtained $16,000 million in investments. And it includes, according to the text, “initial disbursements, prizes or scholarships, risk capital, private capital, acquisitions, financing of debts and public offers”.

Bryce Start Up Space 2017 Cover
The report specifies which are the main investments that have been made in the space sector. Source: Bryce Space and Technology

This implies that great opportunities have been seen in the space sector. And we see it from the above report through the words of Patricia Hynes, director of the New Mexico Space Grant Consortium. Who explains that even more people are investing and being part of this initiative.

She explains that “the areas that are expected to grow the most are the development of low-cost satellites, the construction of space ports and space tourism.” And just like all this, there are other types of technologies that are being developed thanks to the financing of the space sector.

financing in the space sector
The financing of initiatives aimed at the space sector has allowed great advances in this area.

It’s possible to continue uniting in other aspects that have allowed the financing of this area. Turning it into a promoter of space development worldwide thanks to the help of these investors. The statistics are good and they tell us that in the future we’ll see many more advances.

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Do you think it’s worth investing in the space sector?