Private investing in space companies set a new annual record last year with $8.9 billion, exceeding expectations that had been lowered due to the ongoing coronavirus pandemic, CNBC reports.
Chad Anderson, managing partner at the firm Space Capital, wrote in a report released Monday: "With another $2.9 billion invested in Q4, 2020 was a record year for [companies related to space infrastructure] with $8.9 billion invested. Despite expectations that Infrastructure would be hardest hit by the pandemic, 2020 turned out to be a record for investment."
Space infrastructure companies include those that build rockets and satellites like SpaceX, Blue Origin, Relativity Space, and others.
Anderson also noted, two dozen exits occurred in the industry last year, accounting for about $7.9 billion in value being liquidated.
"Nearly all of the Infrastructure exits over the past decade have come in the form of acquisitions," he wrote. "The low-interest rate environment has acted as a tailwind for M&A activity with 2020 being the most active year on record."
The report also describes Amazon and Microsoft as having "accelerating space ambitions," saying this is "one of the most overlooked stories of 2020, which we expect to have a significant impact in 2021 and beyond."
He added, Microsoft's Azure Space and Amazon's AWS Space "are removing complexity across the value chain, making a global network of space-based communication and data collection infrastructure accessible to the tech community to innovate upon."
"In the same way that every company today is a technology company, the companies of tomorrow will all be space companies," Anderson concluded.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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