How to Invest in Space Startups

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Contributor, Benzinga
November 14, 2023

Investing during the startup stage gives you the chance to be a part of big profits. This is true of all startups, but there is untapped potential in developing industries.

Space exploration and the development of the private space travel industry is beginning to grow. Interested in joining the race to space with an investment? Learn how you can invest in space startups now. 

Why Invest in Space Startups

The space industry presents a multitude of potential opportunities. There is almost no limit to the number of technological innovations that will be needed to build and maintain a private space industry. The business model of space startups is closely tied to the space economy and the space sector.

Examples of business opportunities that could thrive in a space industry economy include:

  • Artificial intelligence
  • 3-D printing
  • Computing
  • Private space travel
  • Space junk removal
  • Advanced propulsion systems

For the space industry to evolve into the multi-trillion-dollar potential some analysts forecast, significant advancements must be made in all of the above categories —and more. All companies within the space industries will need more funding than they have available in the startup stage.

These companies must raise money, both publicly and privately, which translates into near limitless potential opportunities for investors. Companies that could help provide food for long-distance travel or private carriers to transport more space tourists offer investors the opportunity to get in at the ground floor.

Where to Find Space Startups to Invest In

The nature of space startups involves a great deal of secrecy. It is a fiercely competitive marketplace, and startups are guarded about who they offer investment opportunities. The first people to get a shot at these opportunities are well-connected venture capitalists and executives at high-powered private equity funds.

However, both venture capitalists and private equity funds like to pool investor funds with their own in order to minimize their own risk. Opportunity will be available to the average investor.

There may be some exchange traded funds (ETFs) like ArkX, a fund that holds multiple stocks across a range of space oriented companies.

Some startup crowdfunding platforms even have space startup offerings.

Solstar Space Company seeks to provide WiFi service in outer space. Solstar is currently available as an offering on Wefunder.

Global Space Fund is another fund that invests across a number of different space related fields and startups. 

The opportunities evolving in the space industry are not household names yet, but startups will continue to become available to investors of all kinds. 

Choosing Which Space Startups to Invest In

Regardless of the industry you’re investing in, choosing startups wisely is a difficult task. There are a limitless number of variables in play, which is why it is important to have a diverse portfolio. Most startups are going to fail.

This means retail investors might be best served to let a more experienced hand research and offer investment in startups. ETFs and crowdfunded equity offerings vetted by knowledgeable investors can allow you to begin building your portfolio of space startup investments with less risk. 

If you are determined to be a hands-on investor, take a strategic approach to choose your space startups. Make a list of the most indispensable aspects of developing the space industry. Artificial intelligence, robotics, internet access and global infrastructure for private launches will all play tremendous roles in the private space industry and may be worthy of your investment.

Space Economy: The Lucrative Final Frontier

The modern space race should bring fierce competition among private companies and not government space programs. Any startup that can develop innovation that advances the private space industry stands to make billions for its shareholders. Do your research before you invest, and join the lucrative final frontier of the private space industry.

Frequently Asked Questions

Q

Can you invest in space companies?

A

Yes, it is possible to invest in space companies. Many space companies are privately held and offer opportunities for investment through venture capital firms or private equity funds. Additionally, some space companies are publicly traded on stock exchanges, allowing individual investors to buy shares in these companies.

Q

Can a person invest in SpaceX?

A

Yes, it is possible for a person to invest in SpaceX. However, currently SpaceX is a privately held company and its shares are not publicly traded on the stock market. This means that only certain individuals or institutional investors who meet specific criteria can invest in SpaceX. These criteria typically include having a high net worth or being an accredited investor. However, it is important to note that the availability of investment opportunities in SpaceX may change in the future as the company continues to evolve and potentially goes public.

Q

Can I buy shares in NASA?

A

No, you cannot buy shares in NASA. NASA is a government agency and does not have publicly traded shares like a corporation. It is primarily funded by the U.S. government through federal budgets and grants.

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About Eric McConnell

Eric McConnell is an alternative investment writer interested in rare collectibles, fine wines, art and sports memorabilia. He developed his love for sports during his childhood, where in addition to being an aspiring professional baseball player, he was an avid baseball card collector and reader of the Robb Report.

As is the case for many aspiring young sluggers, Eric’s baseball career came to an end the first time he encountered a pitcher capable of throwing 90 mph and a wicked curveball. However, his delight in the finer things of life never waned, and after a career in real estate, Eric branched out into writing, where he joined Benzinga as an alternative investment writer in 2021.

Although he covers breaking news in all areas of alternative investments, Eric’s favorite subjects harken back to his childhood days of reading the Robb Report and collecting baseball cards. He has a passion for writing about fine art sales, whiskey auctions and sports memorabilia.