
Strong US defense spending draws investors to space startups, report says
Space startups
continued to draw investor dollars in the April-June period, making it the second strongest quarter on record for funding, as increased U.S. defense spending is expected to boost the sector's prospects, an industry report showed on Monday.
Global investments in startups, ranging from early stage to growth stage, surged to $3.1 billion in the quarter ended June 30 from $2 billion in the first three months of the year, according to VC firm Seraphim Space's report.
Notably, Series B and C funding rounds accounted for a record 65% of total investment, signaling strong investor conviction in scaling early-growth space ventures.
Concerns over potential spending cuts under the Trump administration have done little to dampen funding momentum, as major defense initiatives - most notably the
Golden Dome missile defense
program - fuel investment and bolster optimism across the sector.
"Given today's geopolitical climate, the pull from defense is strong, and founders are responding," Seraphim Space investment analyst Lucas Bishop said.
Much of this momentum is being driven by capital-intensive areas such as rocket launches, space infrastructure, and satellite manufacturing and operations, Seraphim Space said in its report.
The $175 billion Golden Dome missile defense shield initiative by the U.S. also drove investor optimism in the space sector, spurring new deals and partnerships among leading companies, according to the report.
"More investors now see national security as a viable end market, with government customers offering early adoption pathways, non-dilutive funding, and R&D support - advantages rarely found in commercial markets," Seraphim Space's Bishop said.
Globally, the number of deals in the second quarter grew about 36% to 171, compared with the first quarter, the report showed.
U.S.-based Impulse Space, which designs, manufactures, and operates in-space transportation vehicles, raised $300 million in a Series C round, making it the biggest deal of the second quarter.
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Economic Times
15 minutes ago
- Economic Times
Trump's Golden Dome looks for alternatives to Musk's SpaceX
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Golden Dome's initial outreach this spring invited smaller, newer Silicon Valley firms seen as nimbler, more sophisticated and potentially less expensive alternatives to the big defense firms to the table - but that was before the Musk-Trump feud upended that calculus. Several with close ties to Trump aside from SpaceX, including Palantir and Anduril - were considered early frontrunners to win big pieces of the $175 billion project. But the Musk-Trump feud has reshaped the competitive landscape. Musk recently launched the "America Party," a tech-centric, centrist political movement aimed at defeating Republicans who backed Trump's tax-and-spend agenda. Trump launched the Golden Dome initiative just a week into his second term, pushing for rapid deployment. Space Force General Michael Guetlein, confirmed by the Senate on July 17, is set to lead the program with sweeping authority. 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Time of India
28 minutes ago
- Time of India
Trump's Golden Dome looks for alternatives to Musk's SpaceX
The Trump administration is expanding its search for partners to build the Golden Dome missile defense system, courting Project Kuiper and big defense contractors as tensions with Elon Musk threaten SpaceX 's dominance in the program, according to three sources familiar with the matter. The shift marks a strategic pivot away from reliance on Musk's SpaceX, whose Starlink and Starshield satellite networks have become central to U.S. military communications. It comes amid a deteriorating relationship between Trump and Musk , which culminated in a public falling-out on June 5. Even before the spat, officials at the Pentagon and White House had begun exploring alternatives to SpaceX, wary of over-reliance on a single partner for huge portions of the ambitious, $175 billion space-based defense shield, two of the sources said. Musk and SpaceX did not respond to requests for comment. 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Explore courses from Top Institutes in Please select course: Select a Course Category others Finance Data Science Digital Marketing MBA Technology Project Management Product Management Management Data Analytics Others healthcare Cybersecurity CXO MCA PGDM Operations Management Design Thinking Data Science Leadership Public Policy Degree Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details Due to its size, track record of launching more than 9,000 of its own Starlink satellites, and experience in government procurement, SpaceX still has the inside track to assist with major portions of the Golden Dome, especially launch contracts, sources say. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo Project Kuiper, which has launched just 78 of a planned constellation of 3,000 low-earth orbit satellites, has been approached by the Pentagon to join the effort, signaling the administration's openness to integrating commercial tech firms into national defense infrastructure and going beyond traditional defense players. Jeff Bezos, Amazon's executive chairman, told Reuters in January that Kuiper would be "primarily commercial," but acknowledged "there will be defense uses for these [low-earth orbit] constellations, no doubt." Live Events A spokesperson for Project Kuiper declined to comment for this story. The Pentagon declined to comment. The White House did not respond to requests for comment. Golden Dome's ambitions mirror those of Israel's Iron Dome - a homeland missile defense shield - but a larger, more complex layered defense system requires a vast network of orbiting satellites covering more territory. In the search for more vendors for the satellite layers of Golden Dome, "Kuiper is a big one," a U.S. official said. While SpaceX remains a frontrunner due to its unmatched launch capabilities, its share of the program could shrink, two of the people said. 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Under a previously unreported directive from Defense Secretary Pete Hegseth, Guetlein has 30 days from confirmation to build a team, 60 days to deliver an initial system design, and 120 days to present a full implementation plan, including satellite and ground station details, two people briefed on the memo said. The inclusion of commercial platforms like Kuiper raises security concerns. Its satellites would need to be hardened against cyberattacks and electronic warfare, a challenge that has plagued even SpaceX's Starlink network. In May 2024, Elon Musk said SpaceX was spending "significant resources combating Russian jamming efforts. This is a tough problem." Beyond the technical and political challenges, Golden Dome could reshape global security dynamics. A fully operational space-based missile shield may prompt adversaries to develop new offensive capabilities or accelerate the militarization of space.


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