The New 'Space Race' Is On!

Last Friday, space investment firm Seraphim Space released a report showing that global investment in the space sector reached a record $3.5 billion in the third quarter of this year.

According to Seraphim’s data, the previous record was set in the second quarter of 2021, shortly after Jeff Bezos stepped down as Amazon’s CEO in the first quarter of that year to focus his time and resources on his space ventures.

For a long period afterward, global space investment failed to surpass that level. But in the past two quarters, the emergence of new types of startups and the steady rise in defense spending across major nations have driven a strong rebound in worldwide space funding.

In the second quarter of this year, global space investment totaled $3.1 billion, climbing to $3.5 billion in the third quarter. By comparison, the figure stood at just $1.79 billion in the same quarter last year—representing a year-over-year increase of more than 95%.

Analysts noted that this record-setting quarterly investment reflects a maturing space market, as capital is now more evenly distributed among a wider range of companies rather than concentrated in a few large deals.

“Historically, most of the capital in the sector was concentrated in just a couple of players, SpaceX and OneWeb,” said Lucas Bishop, investment manager at Seraphim Space. “What we’re seeing now is a far more diverse set of investable companies, signaling that space has evolved into a broader, more mature market."

Topping the list of startup fundraisers in the third quarter were two Chinese companies: Beijing Galactic Energy Co., Ltd. (Galaxy Power) and Zhejiang Spacetrek Technology Co., Ltd., a commercial space unit under Geely Holding Group.

Galactic Energy and Spacetrek raised 2.4 billion yuan ($336 million) and 2.0 billion yuan ($281 million), respectively, in their Series D funding rounds, with Galactic Energy’s raise ranking as the largest globally in the third quarter.

In the U.S., hardware-focused defense tech firms such as Hadrian, Apex, and Hermeus led major funding rounds, while Divergent stood out in software, and Varda dominated the space infrastructure category.

The report highlighted that this new wave of investment is being fueled by strategic initiatives in the U.S., China, and Europe to strengthen their national space and defense industries. Analysts expect this momentum to continue through 2026.

As commercial satellite networks expand and government procurement intensifies, dual-use technologies that serve both civilian and military purposes are expected to see major growth opportunities.

Meanwhile, the stock prices of listed space companies have surged: Rocket Lab and Planet Labs have both doubled in market value, while AST SpaceMobile has soared more than 200% after showcasing its satellite-to-smartphone broadband technology.