Space Startups Find Cash Among Defense Industry Giants (1)

Defense contractors like Lockheed Martin, Booz Allen, and Raytheon that have invested heavily in their venture portfolios may benefit most from a crunch in the capital-intensive space industry if cash-strapped startups need to exit the arena.

“They’re going to have a front-row seat for when there’s blood in the water,” Space Capital founder Chad Anderson said.

Government spending on space technology looks set to accelerate, as more agencies clamor for satellite-enabled capabilities and the Pentagon and the Department of Homeland Security look for ways to stay ahead of national security concerns.

This year kicked off with a measly first-quarter haul ...