British space race sees £240m investment despite Virgin Orbit failure

Investors are still ploughing cash into Britain’s burgeoning space sector despite the high-profile failure of Virgin Orbit’s rocket launch in Cornwall.

The UK welcomed £240 million from investors last year for space-related projects – behind only the United States and China. 

London-listed space investment trust Seraphim Capital will disclose the figures in findings tomorrow.

This will reveal a surge in deals across the space sector, including 39 in Britain, 64 in China and 165 in the US.

There has been a surge in deals across the space sector, including 39 in Britain,as the space race continues despite Richard Branson shutting down Virgin Orbit operations

There has been growing excitement about Britain’s space sector in recent years, but when Virgin Orbit’s debut space mission from Newquay Airport failed in January, this optimism suffered a blow.

The House of Commons’ Science, Innovation and Technology Committee said last week that the UK ‘is on the cusp of establishing Europe’s first small satellite orbital launch capability’. 

But the committee’s chairman Greg Clark said Britain ‘must act urgently to apply the lessons of the Cornwall disappointment to the regulatory system for satellite launch’.

The latest figures from Seraphim will raise hopes of future success for UK space firms.

Maureen Haverty, Seraphim vice-president, said: ‘Following a fall in investment toward the end of 2022, space investment has returned in the US, with momentum continuing in Europe and deal numbers within the region growing by 60 per cent over the last 12 months.’