Varda Space Industries Secures $42M Series A Funding

Varda Space Industries Secures $42 Million in Series A Funding

Varda Space Industries has successfully completed a $42 million Series A funding round. This investment will be used to advance the manufacturing of products utilizing the unique environment of microgravity.

The relatively new company, established eight months ago, aims to launch its inaugural space-based manufacturing facility as soon as 2023.

Investment Details and Total Funding

This funding round was spearheaded by Khosla Ventures and Caffeinated Capital. Existing investors, including Lux Capital, General Catalyst, and Founders Fund, also participated in the round.

To date, Varda Space Industries has raised over $50 million in total funding. This includes a previously secured $9 million seed round completed last December.

A Novel Approach to Space Manufacturing

Varda’s vision for space-based manufacturing diverges from concepts proposed by figures like Jeff Bezos. While Bezos has suggested relocating all heavy and polluting industries to space, Varda is focused on a more specialized approach.

Co-founders Will Bruey, a former SpaceX employee, and Delian Asparouhov, a principal at Founders Fund, envision utilizing the conditions of space to enable manufacturing processes currently impossible on Earth.

Targeted Product Development

The company intends to produce advanced materials and products that necessitate prolonged exposure to zero gravity.

Potential applications include the creation of bioprinted organs, high-performance fiber-optic cables, and specialized pharmaceuticals. These products require conditions fundamentally different from those found on our planet.

The Dawn of In-Space Manufacturing

According to Bruey and Asparouhov, the potential benefits of manufacturing in microgravity are already demonstrable, evidenced by ongoing research at the International Space Station – a dedicated scientific facility. Decades of investigation from the ISS have consistently indicated the feasibility of creating innovative materials and products within a space environment. However, the prohibitive costs associated with orbital access, maintenance, and return have previously hindered large-scale implementation.

“A considerable amount of our research and development has effectively been conducted for us within the public sector,” Bruey explained to TechCrunch. “We function as a pathway to the commercial application of this already validated research.”

Currently, the company is developing a spacecraft consisting of three interconnected modules. These include a commercially available satellite platform, a central module dedicated to microgravity manufacturing processes, and a capsule designed for the safe return of produced materials to Earth. Initially, Varda intends to manufacture products directly for the first ten launches or so. Once the reliability and cost-effectiveness of their procedures are confirmed, the long-term objective is to establish a contract manufacturing service for other organizations seeking to produce goods in space, Bruey stated.

Asparouhov drew a parallel to the relationship between the iPhone and the App Store: “The initial iPhone release did not include the App Store. Apple first developed a selection of applications to demonstrate the platform’s value. Similarly, we are developing initial products to showcase the commercial viability of our capabilities, with the eventual goal of opening up a platform for broader use.”

A crucial element of Varda’s strategy is the complete automation of the manufacturing process. By eliminating the need for human presence onboard (at least in the initial phases), the company avoids the substantial costs and safety complexities associated with developing human-rated spacecraft and crewed missions.

“Investors, NASA, and the Department of Defense are particularly enthusiastic about our approach because, compared to all previous discussions of ‘space manufacturing,’ we represent the most immediate, practical, and commercially feasible solution,” Asparouhov noted. “We are aiming to launch and produce materials within 18 months, a significantly shorter timeframe than the five, ten, or even decades projected by others.”

He further explained that the economic viability of space manufacturing hinges on a balance between the cost of transporting materials to microgravity and the value derived from manufacturing them in that environment. Profitability will be achieved by identifying products that maximize the difference between these two factors. For instance, innovative pharmaceuticals could generate substantial revenue if the benefits of zero-gravity production are significant.

Bruey indicated that the company envisions “multiple missions” throughout 2023, progressing to a quarterly launch cadence, and ultimately anticipating the return of multiple reentry capsules containing finished products on a daily basis. The Varda founders are confident that the demand for novel space-manufactured products will be sufficient to support this ambitious launch and reentry schedule.

In contrast to the emerging field of space tourism, Bruey emphasized that space manufacturing has the potential to positively impact a far greater segment of the global population.

“This endeavor promises to enhance the quality of life for a broad spectrum of humanity,” he concluded.