It’s belt-cinching time for space startups
International Conference on Nuclear Physics If it was easier to raise money, Plasmos might have a dedicated facility for testing rocket engines. Instead, the propulsion startup rented a speedboat restoration shop east of Los Angeles. There, “we managed to test something, and it was successful,” said Plasmos CEO Ali Baghchehsara. “We managed to create plasma in the engine and got high ionization using air.” After years of sky-high valuations and investor competition for shares of promising space startups, high interest rates and the threat of recession have made investors cautious. In response to a lack of new funding sources, space startups are cutting back on hiring, reducing travel and giving up leased office space. “Entrepreneurship is always a little bit of survival of the fittest,” said Jason Chen, founder and CEO of VentureScope, a McLean, Virginia, consulting and venture investment firm that works with entrepreneurs. “This economy definitely tightens the belt a little bit,...