Latest news with #venture capital
Yahoo
5 days ago
- Business
- Yahoo
Space investment soars despite market turbulence
After years of being treated as a frontier opportunity, the space economy is now firmly entering the mainstream. The sector just posted one of its hottest quarters since 2021 without a single SpaceX ( mega-round. It was driven not just by record-breaking capital flows but by a broader recognition that space is a macro-relevant asset class reshaping defense, connectivity, and global intelligence. European governments are spending like it's 1949, and high-profile exits signal a thaw in the IPO market. Private capital surged even as the volatility index (^VIX) hit pandemic-era highs. In Q2 alone, 113 companies raised $7.8 billion, bringing total investment since 2009 to $357.8 billion. Venture capital made up 77% of this year's funding (up from 54% in 2024), signaling that professional investors are doubling down even as public markets wobble. Amid the noise, one signal stands out: Capital is flowing to companies that turn space data into decisive advantages on Earth. This is the trade to watch, because in 2025, the real moonshot isn't the rocket. It's the revenue. From commercial dreams to government-backed growth The clearest signal of this shift is the rise of defense. The US government's $175 billion Golden Dome initiative — an ambitious plan to harden national security through resilient, space-based infrastructure — has catalyzed investor confidence. This massive source of funding is key to long-term growth. Commercial markets may be heating up, but nothing beats the scale or certainty of the government checkbook, and space startups are increasingly prioritizing stable, well-funded public contracts. Another trend worth talking about: Europe is getting serious about the space domain as the continent pushes for greater sovereignty. NATO members are pledging 5% of GDP to defense, the EU has carved space into its new Competitiveness Fund, and deals like France's 1.6 billion euro ($1.8 billion) Eutelsat rescue and SES's proposed 2.8 billion euro ($3.2 billion) Intelsat merger show that Brussels is trying to counterbalance Starlink. Over the long term, this could pose risks for some US companies. But for now, this ambition is limited by a fundamental reality: 80% of European hardware is still imported, mostly from the US. The continent is as likely to write checks in Hawthorne, Calif., as in Toulouse, France, at least until homegrown heavy launchers prove themselves. Infrastructure and applications: The defense tech supercycle Investors poured $3.2 billion into the infrastructure layer this quarter, up 60% since the prior quarter, which is its strongest showing in five quarters. These are the hardware-heavy plays: satellites, rockets, propulsion systems. Leading the way were Applied Intuition's $600 million Series F and Impulse Space's $300 million Series C, both US-based and both aligned with Golden Dome's push for dual-use, AI-native systems. Seed-stage checks averaged $8 million — a 36% jump — and Series C valuations climbed 30%. This is the "picks and shovels" layer of the space economy. These companies are building the foundation for national defense, global intelligence, and future economic expansion in orbit. For investors, they offer earlier-stage access to mission-critical technologies that governments are now committed to buying. While SpaceX is still the apex player in the space economy, with $15.5 billion in projected 2025 revenue, its dominance is no longer absolute. Four Starship mishaps this year, mounting political entanglements, and rising competition have raised investor eyebrows. Eight of the 10 largest infrastructure deals this quarter involved companies building in areas once thought squarely in SpaceX's path. SpaceX isn't going away, but it's no longer the only game in town. That's healthy for the ecosystem and creates fresh opportunities for investors looking to diversify their exposure. But for the real heat, look to applications. Applications banked $4.4 billion, the second‑highest quarter in three years, and 86% of that cash chased defense‑tilted geospatial intelligence (GEOINT). Anduril's ( $2.5 billion Series G cemented its status as the world's most valuable defense-tech startup. Europe's Helsing raised $683 million, and US-based Chaos raised $275 million. This layer is often misunderstood. These aren't the rockets and space stations that people often consider "space companies." They're software and defense platforms that leverage orbital infrastructure. That makes them more accessible to public investors, as many already trade on major exchanges or are approaching IPO readiness. This is where retail and institutional investors alike can gain exposure with less exposure to hardware timelines or launch risk. Exits are back, but the bar is higher Of the 637 infrastructure startups that raised a seed round since 2009, only 14 have made it to Series E — a survival rate of just 2%. The real crucible is the Series C-to-D gap, where capital becomes scarcer and technical risks collide with commercialization challenges. Application-layer startups, by contrast, show stronger scalability: 66% of those that reach Series D survive to Series E. Software still scales faster, especially once product-market fit is locked in. Despite this brutal attrition curve, Q2 delivered signs of life on the exit front. The quarter delivered 20 exits worth $1.8 billion: 18 acquisitions and two IPOs. Voyager Technologies (VOYG) floated at a frothy 26x sales, popped 82% on day one, then sagged as investors read the income statement: $144 million revenue, $66 million loss, and meager growth. Meanwhile, CaoCao Mobility ( was priced at just 1.3x sales, the lowest multiple in the cohort, and still struggled to gain momentum. The liquidity outlook for the rest of 2025 is cautiously optimistic. Already in early Q3, Texas-based Firefly, which makes rockets, space tugs, and lunar landers, has filed for a Nasdaq IPO. ICEYE is reportedly exploring a public debut, and Sierra Space continues to weigh its long-anticipated offering. The most valuable private companies, available in the second quarter Space IQ report, may provide clues to who will be next. M&A activity, meanwhile, is on track to surpass 2024's record volume, but the game has changed. The era of "growth at any cost" is over. Acquirers are demanding solid unit economics, and IPO buyers remain skeptical of burn-heavy stories. But with defense tech trading at premiums and the S&P 500 (^GSPC) hitting record highs, the window may be opening again with several GEOINT players rumored to be testing the waters later this year. What's next Once Starship becomes fully operational, it is expected to drive an order-of-magnitude drop in launch costs that will unlock entirely new industries, such as logistics, stations, lunar, and industrials, which currently represent just 3% of invested capital. That's the next big wave. But for now, here's what investors should watch: First, follow the defense startups aligned with national security missions are winning larger contracts and growing faster. This is a stable and expanding revenue base. Second, prioritize real revenue and capital efficiency. Q2 rewarded companies that showed a credible path to profit, such as Anduril and SandboxAQ ( and punished those reliant on multiple expansions. Third, bet on applications. Software and autonomy platforms built on space data are where the growth and public-market opportunity is now. These companies scale faster and are increasingly accessible to retail investors. The second quarter marked a significant turning point for the sector, and the companies that turn space-based capabilities into decisive advantages here on Earth are the ones attracting capital. For investors, it's not just about what gets to orbit anymore. It's about what delivers returns on the ground. Chad Anderson is the founder and managing partner of Space Capital, where he has been pioneering investment in the space economy for over a decade. He is an investor in SpaceX, along with dozens of other space companies, and is the author of "The Space Economy," published by Wiley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
16-07-2025
- Business
- Japan Times
Tokyo emerges as a top market for global tech talent
Tokyo is a leading market for tech talent alongside Beijing, the San Francisco Bay Area, Bengaluru, Paris, New York and Dublin, according to a newly released global ranking. Colliers, an investment management and professional services firm, studied more than 200 global markets, drawing on job posts, access to venture capital (VC) and the available talent pool to score and rank global and regional tech markets, culminating in its report Global Tech Markets: Top Talent Locations 2025. In the global rankings, Tokyo placed 10th, behind Dublin and ahead of Washington. In the Asia-Pacific rankings, it took third behind Beijing and Bengaluru. 'Global technology talent markets have evolved rapidly over the past five years. Few events have disrupted the markets faster than the introduction of generative AI models,' the report said, noting that as businesses raced to implement artificial intelligence, demand for related skills had created 'unprecedented competition for key roles in data science and cybersecurity.' While calls for traditional IT jobs have fallen in recent years, demand for AI expertise has ballooned, with data scientists and cybersecurity professionals in particular being sought after. Talent with such skills are in high demand globally. Tokyo, which has been pushing to develop startup hub ecosystems across the country and attract highly skilled talent, earned an 'above-average VC funding score.' According to the report, the Japanese capital is also a leading choice in the Asia-Pacific region for startups. With the race for tech talent intensifying, companies are seeking to invest more in regions that offer 'more abundant and affordable tech talent,' the report said. In Japan, the weak yen against the dollar translates to lower costs for overseas employers when it comes to recruiting from the nation. Driven by a push for greater affordability, more tech companies are opening offices in the Asia-Pacific region and in Latin America in order to maintain their competitive edge, according to the report. India remains the region's leading tech talent hub, with lower costs, developed infrastructure and highly skilled workers. 'Leading tech cities in India account for 69% of the total tech talent in the Asia-Pacific region,' said Arpit Mehrotra of Colliers' India office. Among the other trends mapped by the report, workers in the tech space are skewing younger, and there has been a greater recruiting focus on cities with young talent, including Jakarta, Hyderabad and Bengaluru.
