Rocket Lab CEO Peter Beck has defended the recent wave of investment in the space industry, including the SPAC frenzy, arguing that it has been beneficial for the industry overall, despite some companies failing.
Speaking at the Smallsat Symposium on February 4, Beck acknowledged that many companies went public through SPAC mergers that "just should not have." However, he maintained that the experience has been valuable for companies like Rocket Lab, which went public through a SPAC merger in 2021, and for the industry as a whole.
"That whole thing was crazy but actually fantastic for the space industry because it injected large amounts of capital into the industry," Beck said.
He also predicted consolidation within the space industry this year, with both large and small companies looking to merge to remain competitive or fuel growth. Beck believes that the industry is moving towards a more commercial and less government-subsidized approach, making consolidation a necessity for many companies.
Rocket Lab itself has been active in acquisitions, buying several companies in recent years to expand its space systems business. The company's share price has been steadily increasing, reflecting the market's approval of its growth strategy.
Beck concluded that the public markets are "very efficient" and that companies are rewarded for success and penalized for failure, creating a more competitive environment for the space industry.