1、Private market equity investment activity and startup trends in the space economy from the investors at the forefrontSpace Investment QuarterlyQ3 20222022Q3Front cover image courtesy of iM.Apple is taking most of Globalstars network for its new satellite feature.Space Capital 2022Expectations for Q3

2、 were high with hopes that the Fed would tame inflation and investors would get back to deploying capital,neither of which occurred.Economists were forecasting the U.S.Headline Consumer Price Index(CPI)for August to slow to 8.1%YoY from 8.5%in July,signaling a June peak.Instead,Headline CPI rose wit

3、h stubbornly high rents and food prices driving Core CPI(excludes volatile prices)up 0.6%to 6.3%YoY.The Federal Reserve responded in September with another 75 Bps rate increase resulting in the fastest rate hike cycle since 1988,which is putting pressure on both equity and debt markets,both broadly

4、ending down for the quarter.And these macroeconomic factors directly impact venture capital and private markets.As legendary venture investor Bill Gurley said,“Silicon Valley is more correlated with Nasdaq than anyone admits.”While venture fundraising set a new annual record with$151 billion closed

5、through September and nearly$300 billion of dry powder on the sidelines,many expected that VCs would come back after Labor Day.Anecdotally,from the front lines,valuations are normalizing and we are beginning to see deal activity ramp up.However,thats not yet showing up in the data.Pitchbook shows fe

6、wer deals closing in Q3 when compared to 2021 and less total capital deployed.This can be explained in part by a greater focus on diligence and price control as VCs shift away from pure momentum investing.This risk-off environment has meant that VCs are refocusing on enterprise SaaS and deep tech is