Space startups secured a record $20.8 billion in funding in the third quarter, according to a report by global investment firm Seraphim. The surge came amid heavy investment in launch providers, manufacturing and other infrastructure ventures. The total was nearly triple the $7.4 billion invested in the second quarter and more than double the previous quarterly record.
According to the report, released Wednesday, a record 216 deals were completed during the quarter, up from 140 in the second quarter. Major fundraising rounds included $1.37 billion for Hadrian, $1 billion for Stoke Space and $500 million for K2 Space.
“Capital is following evidence of commercial and institutional demand, not just residual IPO enthusiasm,” said Lucas Bishop, vice president at Seraphim Space.
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Most of the investment went to infrastructure-related businesses. Companies involved in launch services and broader space access attracted $16.4 billion across 120 deals, while satellite communications, Earth observation and other space-services companies raised $4 billion.
Bishop also noted that defense and sovereign demand are increasingly supporting investment in launch, manufacturing and orbital infrastructure as governments prioritize domestic space capabilities.
However, publicly traded space companies continue to struggle. Bishop said that publicly listed space firms remain loss-making, while SpaceX’s scale and visibility may have drawn investor attention away from smaller publicly traded peers.
North America accounted for about 70% of global funding year to date, while China recorded a quarterly high of $3.3 billion across 49 deals. According to Seraphim, funding is likely to moderate from the third quarter’s exceptional level but remain above historical norms as more companies enter growth and scale-up phases.
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Last month, CNBC reported that several space startups had completed major funding rounds as they sought to compete with key players such as SpaceX. These included satellite manufacturer Open Cosmos, which raised €300 million ($346 million). The company said it would use the oversubscribed funding round to build satellite infrastructure, connectivity and real-time intelligence capabilities for Europe.
Meanwhile, Marlan Space and Loft Orbital announced a $1 billion program to build a 50-satellite, AI-enabled constellation, alongside partners including French AI company Mistral and Amazon.
Earlier, German startup Isar Aerospace became the first commercial European company to put satellites into orbit. The company raised €270 million ($302 million) in June to scale production and expand its launch network. U.S.-based rocket startup Stoke Space also raised $1 billion.