TAMPA, Fla. — It is becoming more difficult for young space companies to close growth-stage funding rounds amid increasing investor scrutiny, according to an April 9 panel of investment bankers and equity analysts.
The poor trading performance of early-stage space companies listed on the stock exchange in recent years, coupled with the end of cheap capital as interest rates rise, is weighing on businesses’ ability to build scale in the market.
Citigroup investment banker Sameer Garg said during the Space Symposium in Colorado Springs that young space companies used to just need to nail down one lead investor to close a funding round.
Then it became “a market of two,” where the success of a funding round depended on existing investors stepping up and continuing to demonstrate their interest and desire to support a company alongside a lead investor, Garg…
