Space Investing Tumbled in 2023 but M&A Could Rise: Space Capital

2023 saw the lowest level of investment in the space economy in a decade, Space Capital said Tuesday. The $17.9 billion in private investment for 2023 was down 25% from 2022, it said. The venture capital firm's report said with DOD reworking its approach to space and relying more on commercial space providers, there now is "an inextricable link" between defense spending and commercial space. It said SpaceX's Starship launch rocket, being fully reusable and "ultra-affordable," will dramatically increase launch activity. Blue Origin acquiring United Launch Alliance "would introduce some long-awaited competition" in the launch industry this year, the report said. Declining interest rates are leading to higher equity valuations and better leveraged buy-out math, which could mean increased space industry M&A this year, it said.