karelnoppe/iStock via Getty Images
Investment in spacetech soared to $3.1 billion in the second quarter of 2025, marking the second-largest quarter on record and signaling a robust recovery in the sector, according to a new report from venture capital firm Seraphim Space. The sharp uptick follows a relatively subdued first quarter, which saw $2 billion deployed globally.
On a trailing twelve-month (TTM) basis, however, growth was more muted. Total investment over the past year reached $8.7 billion, a modest increase from $8.5 billion in the period ending Q1 2025, reflecting lingering softness in the second half of 2024.
U.S. leads the charge
U.S. companies dominated the investment landscape, capturing 70% of global spacetech funding in Q2, or roughly $2.2 billion. Year-to-date, U.S. spacetech investment has already surpassed the full-year total for 2024. This surge comes despite continued uncertainty over federal budgets and contracting under the current administration.
Investor enthusiasm has been buoyed by flagship national security programs such as the “Golden Dome,” with defense-related applications driving many of the top deals. Impulse Space’s $300 million Series C round led the quarter and was emblematic of a broader trend: early growth-stage companies, particularly those in Series B and C funding rounds, accounted for 65% of total deal value, an all-time high.
China investment slows, but expected to rebound
In stark contrast, Chinese investment dropped sharply in Q2, accounting for just 8% of global deal volume and featuring only one transaction among the quarter’s top 10. The decline follows a string of outsized Chinese deals in 2024 and is expected to be temporary, with activity likely to rebound later this year.
Capital-intensive segments still in focus
Investment remained heavily concentrated in the capital-intensive “build, launch and platforms” segments, underscoring continued demand for space infrastructure. Nearly all of the quarter’s top deals were aligned with these categories, with defense and national security applications again playing a central role.
While Seraphim excluded Anduril’s $2.5 billion raise from its figures, the company’s growing footprint in the space domain was noted as a key indicator of cross-sector investment momentum.
Public market turnaround
Spacetech stocks rallied strongly in Q2, reversing declines from earlier in the year. Notable gainers included BlackSky (NYSE:BKSY) (+166%), AST SpaceMobile (NASDAQ:ASTS) (+105%) and Rocket Lab (NASDAQ:RKLB) (+101%). Analysts attribute the rally to easing trade tensions and rising demand from defense and intelligence customers.
Adding to the optimism, Voyager Technologies (NYSE:VOYG) completed a successful IPO, listing at the top of its expected price range and continuing to trade above that level in the weeks since.
Resilient sector amid uncertainty
Despite geopolitical volatility and macroeconomic uncertainty, Seraphim concluded that investor sentiment in spacetech remains bullish. Both private and public markets showed signs of renewed strength, driven by long-term demand for space-based infrastructure and growing emphasis on national security and resilience.
With 571 deals closed in the TTM to Q2, up from 528 a year earlier, Q2 2025 stands out as a high-water mark in an increasingly strategic and globally competitive industry, the report suggests.