Space startups in the U.S. attracted massive investment in the second quarter, according to a report from venture capital firm Seraphim Space.
The report cites an improved outlook for U.S. defense spending drove a $3.1 billion spending spree, generating one of the strongest funding quarters on record for the group. Early-growth Series B and Series C funding rounds comprised 65% of total investment, a record.
The bounty added to a $2 billion inflow between January and March, placing SpaceTech investment on track to top $10 billion in 2025. It is currently tracking $8.5 billion year-over-year, undermined by weak action in the second half 2024. Investment activity surged by about 36% in the second quarter, with 171 deals reported across emerging sectors. Nearly all top 10 deals focused on build, launch and platform buildouts.
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U.S. space startups grabbed 70% of the cash injection and are already exceeding 2024's total. The report cites major military initiatives, led by the Golden Dome proposal, as primary catalysts for the Q2 uptick. The Trump administration has submitted a $1.01 trillion Department of Defense budget for fiscal 2026, marking a 13% increase above 2025 levels.
Impulse Space raised $300 million in a Series C funding round in Q2 2025, making it the most lucrative SpaceTech deal. The Redondo Beach, California, startup designs, manufactures and operates in-space transportation vehicles, with total investment now hitting $525 million. Founder and CEO Tom Mueller helped to design SpaceX's Merlin engine, which is currently used in the Falcon 9 and Falcon Heavy launch vehicles.
Linse Capital led the latest funding round, which was joined by new investor DFJ Growth and 11 returning investors.
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"Impulse is tackling one of the most technically demanding challenges in aerospace with a speed and precision we rarely see," said Linse Managing Partner Bastiaan Janmaat. "Their vertically integrated approach, proven track record, and ability to execute quickly in this market give them a real advantage.”
The four-year old startup, which has signed more than 30 commercial and government contracts, will use new funding to "scale and execute a backlog of missions that require faster, more flexible, and more cost-effective in-space mobility." It has already performed several successful space assignments, including two on Mira, a "high-thrust, highly maneuverable space vehicle for payload hosting and deployment."
Two future Impulse Space projects are attracting investor attention. Helios, described as a "high-energy kick stage" to rapidly deploy payloads, is "on track" to fly in 2026. This acceleration booster uses the Deneb engine, which Miller designed, and is expected to operate in multiple space altitudes, from "LEO to MEO, GEO, heliocentric, lunar, and other planetary orbits."
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Looking further ahead, the company has launched a road map for a customizable GEO Rideshare Program, with a rollout date scheduled for 2027. Rideshare lowers costs by delivering satellites for multiple clients at the same time.
"Achieving a true Space Age is going to require new levels of in-space mobility to move payloads quickly and precisely, both within and between orbits," Miller admitted. "That capability is what we're building at Impulse."
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