For venture capitalists these days, investing in space has become more than just a moon shot.
VC invested more money in space technology last year than in the prior 15 years combined, pouring $1.8 billion into companies including Elon Musk s SpaceX and Internet satellite company OneWeb, according to a recent report by The Tauri Group partially funded by NASA. More than 80 angel and venture-backed space companies were started between 2000 and 2015, according to the report. One, SpaceX, has joined the unicorn circle reserved for private companies valuated at $1 billion or more.
The Tauri Group researchers attribute the spike in interest to the realization that space has become profitable.
Space ventures now appeal to investors because new, lower-cost systems are envisioned to follow the path terrestrial tech has profitably traveled: dropping system costs and massively increasing user bases for new products, especially new data products, the researchers wrote.
Reuters reported on the study Wednesday.
More than 250 investors have put money into space, including Bessemer Venture Partners, DFJ Venture, First Round Capital, Founders Fund, Khosla Ventures and RRE Ventures — as well as corporate venture funds, including Google. The largest funding rounds last year were SpaceX s $1 billion series E and OneWeb s $500 million series A, according to the study. SpaceX, founded by Tesla CEO Musk, has been testing rocket launches in recent months with the ultimate goal of sending humans to live on other planets. OneWeb aims to provide the entire world with Internet access through a web of mass-produced satellites.
Corporations also have been buying up space startups, sometimes providing investors with substantial returns, according to the report. Monsanto acquired the Climate Corporation in 2013 for $930 million — about 8.5 times the venture investment put into the company. Google acquired SkyBox Imaging in 2014 or $478 million — about 5.3 times the venture investment.
Image: The SpaceX Falcon 9 rocket successfully lands at historic Complex 13 at Cape Canaveral Air Force Station, Monday, Dec. 21, 2015. (Craig Bailey/Florida Today via AP)
The post Space investing has record year in 2015 appeared first on SiliconBeat.
