Overview
Varda Space Industries operates as a space company dedicated to manufacturing materials in the unique environment of space. The company specializes in producing pharmaceuticals under microgravity, where near-weightlessness allows for crystal formations that gravity on Earth disrupts. These improved drug forms can enhance treatments for conditions like HIV or cancer. Varda handles the entire process, from launching spacecraft to processing materials in orbit and returning them safely to Earth. Beyond pharmaceuticals, the company explores other materials, such as fiber optic cables, and offers testing services for high-speed reentry technologies. Based in El Segundo, California, with an additional office in Washington, D.C., Varda employs around 144 people and draws expertise from established space and pharmaceutical fields.
Founding and History
Three individuals established Varda Space Industries in late 2020. Will Bruey, who serves as CEO, brought experience from his time at SpaceX as an electrical engineer involved in rocket and capsule development. Delian Asparouhov, the chairman and president, contributed his background in venture capital from Founders Fund and earlier work in space-related projects. Daniel Marshall, initially the chief scientist, rounded out the founding team with his technical knowledge. The company incorporated in November 2020 and quickly secured initial funding to begin operations. Early efforts centered on building a facility in El Segundo for designing and testing spacecraft components. Over the first few years, Varda progressed from concept to actual space missions, marking its place in the emerging field of orbital production.
Technology and Operations
Varda Space Industries builds autonomous spacecraft known as the Winnebago or W-Series capsules. Each capsule includes a satellite platform for orbiting Earth, a manufacturing section for processing materials, and a reentry vehicle protected by a heat shield to survive the intense heat of atmospheric reentry. The heat shield uses a material called C-PICA, originally created at NASA’s Ames Research Center. Once in orbit, the capsule operates without human input, allowing materials to form under microgravity for extended periods, sometimes weeks or months.
The company’s operations start with ground-based facilities. In El Segundo, Varda maintains a pharmaceutical laboratory and a hypergravity platform to screen potential drugs before space flights. This setup helps select which materials for orbital processing. Launches occur on reliable rockets, and after manufacturing, the capsules reenter Earth’s atmosphere at speeds over 19,000 miles per hour, deploying parachutes for soft landings at designated sites. Varda also provides hypersonic testing, where the high-speed reentry simulates conditions for military or research purposes, such as evaluating heat-resistant components.
Key Missions
Varda Space Industries has completed several missions to validate its approach. The inaugural W-1 launched in June 2023 aboard a SpaceX Falcon 9 rocket during the Transporter-8 rideshare. This 660-pound spacecraft processed crystals of ritonavir, a medication used in HIV treatment, demonstrating how space conditions yield superior results. After delays due to regulatory approvals, the capsule returned in February 2024, landing at the Utah Test and Training Range. This event set records as the first commercial spacecraft to touch down on a military site and under new FAA rules.
Subsequent flights built on this success. W-2 took off in January 2025 on Transporter-12, carrying experiments from the Air Force Research Laboratory and NASA. It landed in February 2025 at the Koonibba Test Range in Australia. W-3 followed in March 2025 via Transporter-13, with reentry in May 2025 at the same Australian location. The W-4 mission, launched in June 2025 on Transporter-14, incorporated an in-house developed satellite platform, showing Varda’s growing independence in spacecraft design. These missions have handled up to 10 kilograms of material, with plans to scale up.
Funding and Growth
Varda Space Industries has attracted substantial investment to support its expansion. The company raised $9 million in a seed round in December 2020, followed by $42 million in a Series A round in July 2021. In April 2024, a $90 million Series B round valued the company at $500 million. Most recently, in July 2025, Varda secured $187 million in a Series C round led by Natural Capital and Shrug Capital, with participation from investors like Founders Fund, Khosla Ventures, and Lux Capital. This brings total funding to over $328 million.
Growth has accelerated with these resources. Employee numbers have increased, and production capabilities have expanded. The funding enables more frequent missions and larger payloads, targeting up to 100 kilograms per flight by late 2025. Varda’s dual focus on commercial pharmaceuticals and defense-related testing has diversified revenue, helping sustain operations as the space manufacturing sector develops.
Partnerships and Collaborations
Varda Space Industries works with several established players in the space industry. SpaceX serves as the primary launch provider, having handled the first four missions through its Transporter rideshare program. For satellite platforms, Varda initially partnered with Rocket Lab, purchasing Photon buses and securing an option for more. This collaboration sped up early development.
On the research side, missions have included payloads from NASA and the Air Force Research Laboratory, fostering ties with government entities. Pharmaceutical companies like Merck have shown interest in space-processed drugs, though specific client details remain limited. These relationships provide technical support, regulatory guidance, and potential customers, strengthening Varda’s position in both commercial and defense markets.
Future Outlook
Varda Space Industries plans to increase mission frequency to monthly launches by 2026. This ramp-up will lower costs per flight, from around $12 million initially to $2.5 million after several iterations, through reusable components and efficient launches. The company intends to broaden applications beyond small-molecule drugs to include complex biologics, such as monoclonal antibodies, which represent a large market.
Challenges persist, including regulatory hurdles and proving the economic advantages of space manufacturing. Varda addresses these by investing in ground-based testing and building a robust supply chain. As orbital infrastructure improves, the company positions itself to make space production routine, benefiting industries on Earth.
Summary
Varda Space Industries stands out in the space sector by turning microgravity into a practical tool for better pharmaceuticals and materials. From its 2020 founding to recent funding successes and mission accomplishments, the company has demonstrated viable orbital manufacturing. With strong partnerships and ambitious scaling plans, Varda contributes to expanding human activity beyond Earth while delivering tangible value here.
