Space Capital (NASDAQ:UFO) invests $6.5 billion in space economy in first quarter.

According to data from venture capital firm Space Capital, investment in the space economy grew by 33% quarter-over-quarter in the first quarter, reaching $6.5 billion across 103 companies. Space Capital noted that companies in the space economy achieved significant milestones in Q1, demonstrating technical proficiency and innovation that goes beyond SpaceX to other rising stars in the industry.

Late-stage and other companies received $4.3 billion in funding during the first quarter, accounting for 66% of the total investment. Infrastructure investment totaled $2.7 billion, with venture capital investors contributing 56% of the capital deployed during the quarter. Applications investment saw a significant surge, increasing by 95% quarter-over-quarter to $3.7 billion.

Ten companies in Emerging Industries raised a total of $0.1 billion in the first quarter, with VC investors responsible for 46% of the capital raised. Distribution investment and deal activity were limited during the quarter, with only $0.1 billion invested. Space Capital emphasized the need for continued innovation in this sector to unlock value and monetize the infrastructure being developed.

Space Capital pointed to Reddit’s successful IPO as a positive sign for space companies looking to go public. As the industry looks ahead to Q2, Space Capital will be monitoring increased exit activity in response to the Fed’s interest rate pivot indicating a potential market recovery. Additionally, with public multiples surpassing private ones, there may be a surge in private market valuations in the future.