Space tech startups fall out of VC orbit

FILE PHOTO: View of M74, otherwise known as the Phantom Galaxy in this handout image released August 29, 2022. NASA/ESA/CSA James Webb Space Telescope/Handout via REUTERS

(Reuters) - Space technology startups are being forced to limit their sky-high ambitions, as their venture-capital backers turn to safer bets due to the current economic turmoil, VC firm Space Capital said.

Decades-high inflation, rapidly rising interest rates and the Ukraine war have roiled global financial markets, forcing investors to evaluate their investment strategies and focus on companies with viable products in the market.