Israeli space tech just got a boost as Earth & Beyond Ventures, a new early-stage VC fund focusing on the space industry, announced it will invest $125 million in local deep tech and space startups.

The new fund is intended to leverage Israel’s expertise in aerospace, satellite engineering and the growing “New Space” market.

It is the first fund of its kind in the Holy Land to focus on innovations that can work both in space and back on Earth.

The fund’s general partners are Daniel Recanati, founder of Rhodium; Doron Zauer; Israel Biran; and Ofer Asif of Spacecom. Backers include:

• Corning, the global materials and manufacturing giant that’s been supplying material and products to NASA for over 50 years.
• Japanese electronics company Kyocera.
• Samtec, a global manufacturer of electronic connectivity components.
• Israeli satellite communications services provider Spacecom.
• The Israel Innovation Authority.
  
  

  Investments in space tech have changed in recent years. In the not-so-distant past, the industry was dominated by government funding and the focus was mainly on space exploration and defense. Nowadays, investments are coming more from the private sector with outspoken entrepreneurs like Elon Musk and Jeff Bezos leading the way.

  Bank of America Merrill Lynch and Morgan Stanley have estimated that “Space 2.0” could generate over $1 trillion in revenue by 2040. Between 2012 and 2021, total annual investment in the commercial space sector grew from $300 million to more than $10 billion, according to McKinsey.
  
  Image - Dima Zel via Shutterstock