Varda Space raises new tranche of funding at $500 million post-money valuation

Varda Space Industries, the in-space manufacturing startup that aims to revolutionize the manufacturing of pharmaceuticals, semiconductors and more, is in the process of raising $25 million in new capital that will bring its investment value to approximately $500 million. would bring, according to documents reviewed by TechCrunch.

The fundraising comes at a crucial time for Varda, who is preparing to send his first spacecraft into orbit. The startup has ambitions to operate multiple autonomous “space factories” in orbit capable of producing sensitive materials that can only be produced in a zero-G environment. Although manufacturing in space is not new, years of research at the International Space Station have not allowed any company to produce at scale in space or return the products to Earth.

The $25 million pre-Series C “family and friends” round is being raised as a special purpose vehicle (or SPV) managed by Side Door Ventures, which has invested in two of Varda’s previous rounds. One of Side Door’s investors, Jordan Croom, joined Varda in September 2021 as head of payloads and mechanisms. According to his LinkedIn, Croom primarily focuses on “early stage deep/frontier tech in industries as space, robotics, energy, climate, and transportation” at Side Door. The company may have since updated its term sheet.

Hustle Fund Scale, which helps organize the SPV, is asking interested investors to commit and transfer funds by May 31. Varda declined to comment on this story.

The company’s inaugural mission will fly on SpaceX’s Transporter-8 ride-share mission in June. Manufactured by Rocket Lab as part of a bulk order, the spacecraft will contain small production and reentry modules made by Varda. After spending about three months in orbit, the company hopes to return between 40 and 60 kilograms of material to Earth.

One of the applications Varda wants to focus on is pharmaceuticals. Microgravity has major implications for drug development and could improve bioavailability, extend shelf life and provide other breakthroughs. The total addressable market for these and other products – including semiconductors and fiber optic cables – can be astronomical.

According to LinkedIn, Varda hired a leader in life sciences market development and a vice president of biopharmaceutical business development last fall to expand relationships with potential pharmaceutical clients. In March, the company also hired a chief pharmaceutical scientist.

The El Segundo, California-based startup was co-founded by Will Bruey, an engineer who spent nearly six years at SpaceX working on his Dragon spacecraft, and Founders Fund founder Delian Asparouhov. The company has raised a significant amount of funding since its inception in the fall of 2020, including an $11 million seed round and a $42 million Series A. However, according to HF Scale documents, Varda has so far raised $150 million from investors.

Varda faces competition from companies such as Redwire, Space Forge and the Exploration Company, which also have ambitions to manufacture sensitive materials in space.