I recently spoke with CFA UK to explain why the space tech sector will become a fundamental portfolio asset of the future.
Would you describe ‘New Space’ as an investible asset class, and if so, in what way?
Last year was another record year with $12.4 billion of private capital invested in the space ecosystem, a huge increase of more than 60%. We expect this momentum to continue rapidly because the space sector is at an inflexion point. The development of new technologies and understanding of the significant role they can play in tackling some of the most pressing challenges means investors are increasingly seeing space as a fundamental portfolio asset class. We see cloud players accelerating their reach in space in the coming year. AWS (Amazon Web Services), the number one cloud player, established a dedicated space unit in 2019 and has partnered with us on a space accelerator to fund space start-up companies to drive innovation and improve accessibility to space data. Investments like this are rapidly transforming the space industry by providing powerful, cost-effective and scalable solutions to accelerate space companies across the ecosystem. As more significant players become heavily focused on the space sector, we are inevitably entering an age where space is becoming widely accepted as a new investment asset class in the public and private markets. Looking ahead, we believe 2022 will see continued momentum in investment and public interest in the SpaceTech domain. Space is ultimately the digital infrastructure which will enable us to map, monitor, manage and connect our planet, enabling changes as the rail roads or internet have done. This is a multigenerational investment.
Read the full interview below:
The interest, investment and innovation into space technology is only set to continue and grow exponentially over the next decade. A new ecosystem is beginning to form in the stratosphere that will create the environmental conditions for us to expand our presence in space and collect more accurate data to help solve some of the world’s most environmental and economic problems. With more companies investing every day, investors can be assured that the space tech sector will become a fundamental portfolio asset of the future.