Space Tech Funding Poised for Significant Growth, Says OTB Ventures’ Adam Niewinski
The space technology sector is on the cusp of a substantial funding boom, according to Adam Niewinski, Co-Founder of OTB Ventures. In a recent interview with CNBC-TV18, Niewinski highlighted the impressive $6 billion in venture capital secured by space tech startups in 2024, projecting even greater expansion in the years to come.
“The number for 2024, it’s not that big. I believe it’s going to be much bigger soon,” Niewinski stated, emphasizing the sector’s potential. He also drew a parallel between space tech and artificial intelligence, suggesting both fields are crucial for shaping the future. AI’s role in advancing space exploration and technological breakthroughs further solidifies the synergy between the two.
One key driver for the anticipated surge is the increasing involvement of corporate entities in utilizing data derived from space. Niewinski pointed out that historically, governments were the primary funders and controllers of space technology, with innovations like GPS and satellite communication eventually benefiting society. However, the landscape is transforming rapidly. “We now see a lot of corporates starting to use space tech data,” he observed, indicating a shift towards commercial adoption and investment in the industry.
CNBC-TV18 interviewed Niewinski on the topic. Here are some key excerpts from the discussion:
Q: In 2024, space tech startups backed by venture capital secured $6 billion in funding. What factors contributed to this surge, and do you foresee this trend continuing into 2025?
Niewinski: Yes, I believe space tech is the next big thing. It’s perhaps difficult to say whether AI or space tech is larger, as they are distinct domains. However, I’d assert that both are equally critical, given that AI will advance new technologies and broaden our presence in space. The 2024 figures aren’t yet significant, and I anticipate much greater growth.
Q: How significant?
Niewinski: I honestly don’t know. Different consulting companies offer varied figures—I’ve seen a $60 billion projection from McKinsey. Crucially, the world is changing, and we’re witnessing more corporations beginning to utilize space tech data. Previously, space tech was primarily a domain for government entities, which funded space programs and capitalized on space-based data, sometimes making it available to society through GPS navigation and communication. Then, satellite television and enhanced communication capabilities emerged from space observation. While data from space wasn’t actively utilized to a great degree, that’s changing.
Q: The escalating US-China rivalry has been cited as a major factor driving increased investment in space tech. How do these geopolitical dynamics shape your investment strategies within the sector?
Niewinski: Historically, competition between countries has fueled advancements. We saw this with JFK in the US declaring the intention to send humans to the moon, triggered directly by Russia’s launch of Sputnik into space. Today, China, India, and many other nations are actively investing in space development, meaning the US, Europe, and other key countries and governments must follow suit. If you aim to be a player in space, with your own launch capabilities and satellite communications, neglecting this area will render you irrelevant in 10 to 20 years, as space technology will continue to evolve. It’s not just for entertainment, or to simply say we’ll send people to the moon. While it is exciting, it wasn’t always commercially driven, but it is so today.
