Varda Space Raises $251 Million in Series D Round for Space Drug Technology

Varda Space Industries raised $251 million in a Series D funding round, bringing the company's valuation to $1.6 billion. The round was co-led by Lux Capital and Natural Capital, as reported by FiercePharma.

Other investment funds and firms participating in the round included Founders Fund, Khosla Ventures, General Catalyst, Caffeinated Capital, 8090 Industries, Giant Step, and Also Capital. With this round, the total funding raised by the company reaches approximately $598 million since its founding in 2021.

Headquartered in El Segundo, California, the company specializes in building uncrewed re-entry capsules and is betting on manufacturing certain pharmaceuticals by crystallizing materials in microgravity in space. Among its pharmaceutical industry partners is United Therapeutics, with the company's core premise being that space conditions can enable the production of higher-quality pharmaceutical materials than is possible on Earth.

Reuters reported that the round was valued at $250 million, a slight discrepancy from the figure announced by the company. The round closed last September, with reports on its outcome circulating between the end of last month and early October.

What do these terms mean?

Series D Funding Round: An advanced stage of funding where a company receives money from investors in exchange for equity, usually used for expansion prior to an IPO. Valuation: The estimated market value of the company. Microgravity: A condition near weightlessness that helps form more uniform crystals than possible on Earth, which can be beneficial for manufacturing certain pharmaceuticals.