Space sector investment hits record on SpaceX IPO hype

Global investment in space companies surged to a record in the first quarter of 2026, driven by larger late-stage funding rounds and growing investor excitement around SpaceX’s expected public market debut, according to data from investment firm Seraphim Space on Tuesday, News.Az reports, citing Reuters. 

Funding reached $7.95 billion in the quarter, nearly double the $3.93 billion recorded in the previous three-month period, pushing trailing 12-month investment to an all-time high of $18.8 billion. The number of deals also rose to 159, bringing the annual total to a record 654.

The rise in capital was mainly driven by larger deal sizes rather than a sharp increase in transaction volume, with the average deal size climbing to $68 million from $35.1 million in the fourth quarter. The largest transaction was a $1.75 billion funding round for US-based Saronic, one of the biggest space-sector financings on record, the report said.

“The market today definitely feels ‘risk-on’ with capital moving quickly into perceived category leaders,” said Lucas Bishop, investment associate at Seraphim Space, pointing to a mix of tailwinds including defence spending, renewed lunar ambitions, and anticipation around SpaceX IPO.

A potential SpaceX IPO could serve as a major liquidity event for early investors and employees, while also setting a valuation benchmark and improving exit visibility for venture-backed space firms. The rocket company is also scheduled to host an analyst day on Tuesday, Reuters reported earlier this month.

North America accounted for around 70% of total funding in the first quarter, while Europe posted its strongest performance since 2022 and Asia contributed more than $1.2 billion.

Investment has increasingly expanded beyond traditional satellite communications, with more capital flowing into emerging areas such as in-space infrastructure, including space stations and data centres, reflecting the widening scope of the sector.

Recent developments also highlight continued momentum in satellite connectivity, including Amazon’s announcement last week that it would acquire Globalstar for $11.6 billion.

News.Az 

By Nijat Babayev