SpaceTech Enjoys First Quarter SPAC Boom
The Space sector has seen a record-breaking number of Special Purpose Acquisition Company (SPACS) deals announced in the first quarter of 2021, worth more than $7bn collectively, according to SpaceTech investor Seraphim Capital.
Research conducted by the firm shows that the ‘SpaceTech’ industry has become one of the most sought-after markets for SPAC mergers. By the first quarter of this year, 11 space-related companies have already announced their intention for SPAC deals - compared to just six in total before 2021 - totalling $7.2bn of scheduled equity funding. This compares to the total of $7.7bn in private finance invested across some 200+ SpaceTech companies in the whole of 2020.
James Bruegger, Chief Investment Officer of Seraphim Capital, said:
“We believe SpaceTech is at the nexus of mega-trends that will define societal change over forthcoming decades and has a unique role to play in addressing the world’s most pressing problems. Radical advances in the Space sector mean a data and connectivity tsunami is about to transform the world as we know it, driving the next major paradigm shift in the global economy. Having so far largely weathered the worst of the impact of the downturn, the New Space economy is now primed for further strong growth in 2021 and beyond."
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