Saudis to invest $1B in Branson’s space ventures

For decades, space travel was seen as a risky investment. But recently, the commercial space industry has attracted a growing number of investors that now includes the Kingdom of Saudia Arabia, which announced Thursday it plans to invest $1 billion in Richard Branson’s portfolio of space companies.

In a statement, Prince Mohammed bin Salman Al-Saud, the crown prince of Saudi Arabia, said the country intended to take a large stake in Branson’s ventures in an effort “to enhance the role of innovative technology within the kingdom’s blueprint for a modern, diversified economy.”

The infusion of cash is a boon for Branson, who has said that Virgin Galactic intends to start flying tourists to the edge of space in the coming months. The investment also would go into Virgin Orbit, a company that is building a rocket capable of delivering small satellites to space. The deal gives the kingdom an option to invest $480 million more in future space services.

The move is another indication of increasing confidence in the industry. Two years ago, Google and Fidelity announced they were investing $1 billion in Elon Musk’s SpaceX. Since 2000, more than $10 billion has been invested in start-up space ventures, two-thirds of which has been in the last five years, according to Bryce Space and Technology, a consulting firm.

The firm noted several major investments: Amazon founder Jeffrey Bezos has sunk more than $1 billion into Blue Origin, his space company. Softbank and others poured $1.2 billion into OneWeb, which is making small satellites to beam the Internet across the globe.