More and more investors are taking the plunge while investing upon space ventures as there is a significant increase in funding and is deemed to continue to do so in the future as well, despite not having enough returns.
Seraphim Capital is a major firm that is involved in space industry related sector and its chief executive, Mark Biggest reported that the investment has seen a growth of almost 30% in 2018 and is valued at $3.25 billion now. According to him, the industry has gathered momentum, which is only to increase in 2019 especially because a wide range of activities are scheduled for the year.
A separate group of experts in a different panel also said that the valuation of the investments will also be on the rise in the upcoming year with more breakaway companies becoming involved in it.
The sentiment of optimism has not been completely unanimous though. Tess Hatch belonging to Bessemer Venture Partners expects a huge crash in the space market around the 3rd or the 4th quarter and has suggested companies to keep some capital at hand now. Though this may seem a little misplaced, there are few points that point towards this probable situation. Firstly, the middle companies may suffer this fate as the low-end startups have adequate funding and the high-quality end have enough capital to use.
This effect is called the dumbbell effect where the middle companies might plummet. Secondly, the exits in space companies are not that considerable. It primarily means that investors sell off their company or make their stocks public in order to recover their investments. The scope of doing that here also seems to be pretty bleak. One key aspect here is to keep patience as the public and private sectors are changing their financial approach, which could only benefit the space sector.