April 21 (Reuters) - Global investment in space companies surged to a record in the first quarter of 2026, driven by larger late-stage financing and growing investor enthusiasm over SpaceX's public market debut, data from investment firm Seraphim Space showed on Tuesday.
Funding reached $7.95 billion during the quarter, nearly double the $3.93 billion in the previous three-month period, pushing the trailing 12-month investment to an all-time high of $18.8 billion.
Deal count also rose to 159 transactions, bringing the annual total to a record 654.
The increase in capital deployment was largely attributed to bigger cheque sizes rather than a sharp increase in deal volume, with average deal size climbing to $68 million from $35.1 million in fourth quarter. The largest transaction was U.S.-based Saronic's $1.75 billion round, one of the biggest space financings on record, the report said.
"The market today definitely feels 'risk-on' with capital moving quickly into perceived category leaders," said Lucas Bishop, investment associate at Seraphim Space, pointing to a convergence of tailwinds, including defense spending, renewed lunar ambitions and investor anticipation around SpaceX's IPO.
A SpaceX IPO could provide a landmark liquidity event for early investors and employees, while also creating a valuation benchmark, improving exit visibility for venture-backed space companies. Elon Musk's rocket maker will host an analyst day on Tuesday, Reuters reported earlier this month.
North America accounted for roughly 70% of total funding in the first quarter, while Europe posted its strongest performance since 2022 and Asia contributed more than $1.2 billion.
Notably, investment has shifted beyond traditional satellite communications, with significantly more capital flowing into emerging segments such as in-space infrastructure, including space stations and data centers, reflecting a broadening of the sector's addressable market.
Recent developments have also highlighted continued momentum in satellite connectivity, with Amazon saying last week it would acquire Globalstar for $11.6 billion.
(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)
