6 Space Startups Ready to Launch

Do you want to invest in space startups? Or are you curious about some of the most innovative private space companies in the U.S.?

Most people are familiar with a certain high-profile, multi-billionaire, multi-company CEO with aspirations to go to Mars.

But he can’t do it all.

Other private space startups are developing technologies needed to provide sustainable space habitats, build and launch low-cost rockets, refine reusability capabilities, and create a support network required to push the limits of humanity. 

These six startups are at the heart of it.

The next space company IPO might even emerge from this group.

However, most space startups are still developing technologies, let alone business models. Plenty will require more private funding before tapping into the public markets. 

That said, I’m optimistic we’ll find more private space companies going public in the next decade. 

6 Space Startups Ready to Launch

1. Sierra Space

Sierra Space is a private aerospace company founded as an offshoot of the Sierra Nevada Corporation. It was launched separately to focus on space transportation, infrastructure, and technology.

The company’s flagship product is the Dream Chaser, a spaceplane designed to transport cargo and crew to the International Space Station and future-planned low-Earth orbit destinations.

Dream Chaser is notable for its reusability and capability to land on conventional runways.

Sierra Space is also developing Large Integrated Flexible Environments (LIFE), which are modular, inflatable space habitats intended for living and working in space.

The company is creating a commercial space ecosystem, which includes partnerships with NASA and other private organizations. 

One of its critical long-term visions is to build space stations and habitats for both government and private use, contributing to future space tourism and industrialization and highlighting the potential for scientific experiments in microgravity labs.

Sierra Space has raised more than $1.6 billion in private funding. As of September 2023, its confirmed valuation is $5.3 billion. 

Learn more about Sierra Space. 

2. Relativity Space

Relativity Space is a commercial aerospace company refining and scaling metal 3D printing technologies for building rockets, engines, and space vehicles. 

The company believes in a more inspired future with people thriving on Earth and Mars.

The company intends to upgrade humanity’s industrial base on Earth and Mars to support this mission by developing radically simplified manufacturing techniques.

Relativity Space’s low-cost space launch vehicles will require 100 times fewer parts than standard rockets, reducing supply chain constraints, tooling needs, manufacturing square footage, and time to manufacture.

The company believes this will enable the early days of a Mars settlement. In the meantime, Relativity Space will service satellite companies and others with low-earth orbit launch capabilities. 

Founders Tim Ellis and Jordan Noone sent a cold email to Mark Cuban and received $500,000 of seed funding within days of forming the company. The duo graduated from the Y Combinator (W 16) incubator program and built the world’s largest 3D metal printers. 

The goal is to 3D print 95% or more of engine parts and build rockets within 60 days. Its first successful rocket launch occurred on Wednesday, March 22nd, 2023. 

Relativity Space has raised more than $2.4 billion in private funding; its last confirmed valuation was $6 billion.

Learn more about Relativity Space. 

3. Axiom Space

Axiom Space is an orbital infrastructure company that aims to build and maintain the first commercial space station.

Between 2025 and 2030, Axiom Space will launch up to three space modules that will initially connect to the International Space Station (ISS), eventually becoming a self-sustained space station when the ISS is retired. 

Michael Suffredini and Kam Ghaffarian founded Axiom Space in 2016. Suffredini was a program manager for NASA’s ISS from 2005 to 2015. Ghaffarian is an entrepreneur and former NASA contractor.

The partners saw an emerging opportunity to build on the viability of commercial space exploration.

It subsequently won multiple contract awards from NASA, including $140 million to build the first Axiom space station segment and $228 to develop a next-generation astronaut space suit for the Artemis III moonwalk. 

The company has completed multiple crewed missions to the ISS in partnership with SpaceX. 

These missions aim to lay the groundwork and establish key capabilities for the future Axiom Station and expand human capabilities for deep space exploration.

A potential IPO could help raise funds to support these efforts.

Axiom Space has raised more than $600 million billion in private funding, and its last confirmed valuation was $2.6 billion (Serie C, August 2023)

Learn more about Axiom Space. 

4. Blue Origin

Blue Origin is a privately-held aerospace engineering company founded in 2000 by Jeff Bezos, Amazon’s Founder and Chairman (and former CEO). 

The company’s mission is to:

Build a road to space so our children can build the future.

Bezos believes that Earth is the “best planet,” and we must protect it from the future. As the human population grows and more current inhabitants achieve greater prosperity, consuming Earth’s limited resources may not be sustainable.

Bezos’s solution is to expand the human footprint beyond Earth.

Eventually, Bezos envisions humans living in Earth’s orbit and heavy industry moving to the moon and beyond. 

To achieve this vision over the coming generations, humans must reduce space exploration costs through the reusability of launching and landing spacecraft.

We must also build expandable space habitats for extended space experimentation and support for solar system exploration. 

Lowering costs and improving safety are the first steps before humans can live and operate above our atmosphere at scale.

Bezos likely owns 100%, or near 100%, of Blue Origin. The startup has not raised money from outside investors. Bezos has pledged to sell $1 billion of Amazon stock every year to fund Blue Origin. 

Learn more about Blue Origin. 

5. SpaceX

SpaceX (short for Space Exploration Technologies Corp.) is a spacecraft and exploration company based in Brownsville, TX (formerly, Hawthorne, CA) that makes rockets, launch engines, satellites, and human transport modules. 

It is the largest private U.S. company, as measured by its valuation. 

Founder Elon Musk started SpaceX in 2002 with a mission to make humanity multiplanetary. 

The key to achieving his mission is lowering the cost of launching rockets into space by making them reusable and enabling larger payloads.

SpaceX became the first private company to deliver cargo and humans to and from the International Space Station.

Its spacecraft include the Falcon 9, Falcon Heavy, and Starship launch vehicles, multiple rocket engines, Dragon spacecraft (cargo and crew), and Starlink communications satellites.

The Falcon rockets are the SpaceX workhorses, carrying satellites and cargo into orbit for private customers and governments. Falcons deliver Starlink satellites into low orbit to provide global internet access. 

SpaceX owns the last on our list. But maybe not for long.

Learn more about SpaceX. 

6. Starlink (Bonus)

Starlink is a business subsidiary of SpaceX. SpaceX is building a low earth orbit satellite constellation that provides internet access to the world, especially rural areas. 

The web of satellites known as Starlink connects to ground receivers, providing internet at competitive prices, especially to underserved global communities. Internet speeds reach 50Mbs to 150Mbs. 

Customers include governments, airlines, cruise ships, and direct consumers across the globe. As of late 2024, nearly 6,000 satellites have been launched into orbit, and Starlink has 4 million subscribers. 

The satellites ride the Falcon 9 rocket for insertion into orbit.

Twelve thousand satellites are expected to orbit Earth during the first phase, potentially increasing that number to 42,000.

Elon Musk estimates the Starlink business could generate $30 billion by 2025. 

A SpaceX IPO is not likely in the next five years. However, a Starlink IPO spinoff is likely, only the precise timing is uncertain. 

In September 2020, Musk confirmed this likelihood on Twitter and indicated that retail investors might be able to participate:

We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable. Public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.

— Elon Musk (@elonmusk) September 28th, 2020

Starlink “achieved breakeven cash flow” in November 2023, a Musk prerequisite for an IPO. 

We expect SpaceX to retain substantial ownership in a Starlink spinoff or IPO, using investor enthusiasm to inflate a public price and indirectly raise money for SpaceX’s endeavors to reach Mars. 

Learn more about Starlink. 

Which Space Company will Launch an IPO?

The most likely space IPO as of late 2024 is the Starlink spinoff IPO from SpaceX. That’s because Musk has indicated his intent to complete this, and it makes business and fundraising sense.

Public investors want to own his companies. Releasing shares to the public would help Starlink thrive as a public company and enable an indirect funding source for SpaceX.

In April 2024, Sierra Space CEO Tom Vice told CNBC the company was “getting its financials in a strong position ahead off a possible IPO as soon as next year [2025].”

We’ll start to look at [an IPO] as an option and make the decision depending on what the markets look like. But I think we’re very quickly becoming a company that has been able to demonstrate significant top line growth. — Tom Vice

Blue Origin is unlikely to launch an IPO anytime soon. Jeff Bezos has no problems self-funding the company.

However, if Blue Origin wants to win large government contracts in the future, those awards would benefit the public better if he wasn’t the sole beneficiary.

Furthermore, as Bezos ages and shifts focus to legacy, a lasting public Blue Origin could solidify him as one of the greatest entrepreneurs of our time.

Axiom and Relativity are also IPO candidates if they can continue to move toward profitability. However, each is spending heavy cash on research, manufacturing, and talent. All have tremendous challenges and are at least five years behind SpaceX and Blue Origin. 

There is a risk of venture capital investors losing patience if they cannot show progress toward becoming viable and sustainable on their own. 

But if IPO markets heat up via public enthusiasm for artificial intelligence, any company mentioned in this article could use the opportunity to raise funds and go public. 

And if any of these space startups go public first to the positive reception of investors, expect others to follow. 

Conclusion

The private space industry is evolving quickly, driven by exciting young startups and established space giants.

These private space companies are innovating in space travel, sustainable habitats, and affordable launch systems, creating commercial space opportunities and supporting government research and initiatives. 

Though most are still refining their technologies and business models, each has attracted substantial private funding for expansion. Early investors will eventually want to cash out. 

The IPO pipeline potential for space is real, especially for promising ventures like Starlink, which could kickstart a wave of IPOs or ride the tsunami anticipated from the AI boom. 

However, these companies face massive growth hurdles as the costs of research and talent will absorb large sums of venture capital funding before becoming viable. 

For now, these space startups represent the future of space habitation and travel, promising advancements for the benefit of Earth and future non-Earth terrestrial communities.

What companies did I miss? Leave your favorite space startups in the comments section. 

Featured photo courtesy of Axiom Space