Venture-backed space companies face “year of reckoning”

MOUNTAIN VIEW, Calif. — The aftermath of a “bubble” of investment in space startups in recent years could cause many companies to struggle to raise additional funding even as overall market conditions improve.
“This year, 2024, will be a year of reckoning, to a large extent, for venture,” said Timur Davis, investment director at Munich Re Ventures, during a panel discussion at the SmallSat Symposium here Feb. 6.
That situation is the aftermath of a surge of investment in space companies that peaked at $47 billion in 2021, including several companies going public through special purpose acquisition company (SPAC) mergers. A lot of that, he argued, was poorly invested.
“Companies that frankly probably should not have ever raised funds were able to raise funds, and even good companies were raising at valuations that were unsustainable,” he said. “Now, we’re reaping the fallout of that.”
“There were a bunch of investors that shouldn’t have be

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