House startup funding set for enhance from US-China rivalry in 2025, report says
By Akash Sriram
(Reuters) – Funding within the area trade is ready to obtain a lift this yr from rising U.S.-China tensions, after startups within the sector clocked $8.6 billion in investments in 2024, in line with a report by funding agency Seraphim House.
China has been rising its efforts to go toe-to-toe with Western international locations in sectors reminiscent of satellite tv for pc manufacturing and rocket launches to complement the rising want for space-based imaging, intelligence and information.
“This may very doubtless proceed to drive funding in direction of the capitally intensive sectors of the area trade within the yr forward,” mentioned Lucas Bishop, Funding Affiliate at Seraphim House.
Notable offers within the fourth quarter of 2024 included Apple’s acquisition of a 20% stake in satellite tv for pc operator Globalstar for $1.5 billion and a $1.25 billion secondary sale of SpaceX shares, which boosted the corporate’s valuation to $350 billion from $210 billion earlier within the yr.
Firefly Aerospace’s $175 million late-stage funding spherical in November was the most important deal within the fourth quarter, valuing the Texas-based rocket maker at over $2 billion.
The area sector is prone to obtain a lift from SpaceX CEO Elon Musk’s affect over the incoming Donald Trump administration in addition to billionaire entrepreneur and personal astronaut Jared Isaacman being tapped to steer NASA.
If confirmed, the Shift4 Funds founder and CEO would oversee the area administration’s $25 billion funds and future missions.
“A reallocation of funding towards more cost effective, private-sector options may additional enhance funding in firms providing different area applied sciences throughout the board,” Bishop added.
The rivalry between China and america is prone to intensify after Trump takes workplace subsequent week, bolstered by the Division of Protection’s expanded Industrial House Program funding, Seraphim House mentioned.
(Reporting by Akash Sriram in Bengaluru; Enhancing by Krishna Chandra Eluri)
