Space Capital, an early-stage investor, reports a surge in global investments in core space infrastructure, reaching $4.4 billion in the third quarter. This five-quarter high is largely attributed to a breakout year for U.S. satellite manufacturing and robust activity in the Chinese launch sector.

The 12% quarter-on-quarter increase covers hardware and software integral to building, launching, and operating orbital assets. Beijing-based Galactic Energy, for example, secured $336 million, potentially China's largest disclosed funding round for a launch startup. This investment aims to propel rocket development.

“From what we’re seeing, China’s surge in launch investments underscores the scale of industrial mobilization now underway,” Space Capital CEO Chad Anderson told SpaceNews. “Launch is typically the first stage of that cycle — as new rockets and reusable platforms come online, the satellite market inevitably follows. From an investment perspective, the past few years have seen several very large but uneven cycles in satellite funding."

Anderson added, “Part of the reason is that many early- and growth-stage satellite rounds in China remain undisclosed, but as more information surfaces, it’s clear that manufacturing investment is now accelerating in parallel, following the same upward trajectory that launch has already established.”

Defense remains a key driver, particularly in the U.S., where companies are vying for contracts related to Golden Dome, the Pentagon’s initiative to enhance national-security space systems. Apex, based in California, announced a $200 million funding round on Sept. 12, valuing the company at $1 billion as it scales satellite production for both national-security and commercial applications.

Space Capital indicates that 60% of tracked satellite manufacturing funding rounds in the past decade and a half have occurred since 2021. This highlights growing confidence in mass-production models and dual-use hardware targeting both defense and commercial markets.

“While we can’t say for certain that Q4 will show additional acceleration in satellite manufacturing or other verticals, the overall trajectory in core space infrastructure — particularly satellite manufacturing and logistics, which have been the biggest beneficiaries of Golden Dome so far — is clearly upward heading into 2026,” Anderson stated.

Emerging industries like space stations and on-orbit logistics now represent 22% of total rounds, a significant increase from single digits five years prior. While satellite companies lead in deal activity, the launch market has garnered more capital overall, totaling $52.4 billion since 2009 compared to $47.7 billion for satellites.

Average round sizes for infrastructure companies have increased across all stages since 2023, with a notable rise this year as investors concentrate larger sums in fewer, more established ventures. However, only 15 of the 651 infrastructure companies that have raised seed rounds since 2009 have reached a Series E. This suggests that investors are focusing capital on fewer companies earlier in their development.

Space Capital identified 14 investor exits in the third quarter of 2025, totaling $24.2 billion, primarily driven by acquisitions like Intelsat’s sale to SES. Two initial public offerings (IPOs) also occurred: U.S.-based space technology company Firefly Aerospace and Axelspace, a Japanese Earth-observation company. These deals make 2025 the second-highest year on record for infrastructure exit value and a new high for deal count. The peak year for infrastructure exits by value remains 2018 with $46 billion across 18 deals, boosted by transactions involving Collins Aerospace, Microsemi, and Orbital ATK.