April 11 (Reuters) - Funding for space startups more

than doubled in the first quarter as government spending

remained robust setting the stage for the space economy to grow

stronger, venture capital firm Space Capital said on Thursday.

Geopolitical uncertainties have largely driven the surge in

funding, as geospatial data and images collected by satellites

are used by government agencies for everything from analyzing

weather patterns and agriculture to changes and movements along

international borders.

"While we still have some consolidation to get through, the

overall space economy is rebounding and it is now replete with a

number of rising stars," said Chad Anderson, the venture capital

firm's managing partner.

Funding for space startups rose to $6.5 billion in the first

quarter ended March 31, from $2.9 billion a year earlier, and

inflows were up 33% from the fourth quarter, as investment in

geospatial intelligence overtook satellite communications for

the first time, showing the growing demand for such data.

Meanwhile, pricing for satellite capacity has also fallen

helping attract companies to use assets in space for commercial

purposes.

The first quarter saw many milestones including SpaceX's

successful Starship flight test to United Launch Alliance's

launch of Astrobotic and Intuitive Machines' ( LUNR ) mission,

which was the first touchdown on the lunar surface by a U.S.

spacecraft in more than half a century.

The space economy's size is set to triple to $1.8 trillion

by 2035 and roughly rival the size and reach of the global

semiconductor industry, according to a World Economic Forum

report released earlier this week.

This underscores the potential impact on investors,

businesses, and government entities, who stand to gain

significantly from the growth of the space sector.