Varda raises $187M to make drugs in space
Varda Space is pushing the boundaries of pharmaceutical production by taking the process out of Earth’s gravity well and into orbit. The company announced a $187 million Series C funding round on Thursday to accelerate its mission of using space as a unique environment for drug manufacturing.
With gravity posing significant challenges to drug crystallization and purity on Earth, Varda is betting that microgravity conditions can unlock better methods for creating biologics like proteins and antibodies. The funding will help the company build a new 10,000-square-foot lab in El Segundo, California, where scientists will identify the most promising drug candidates for space-based crystallization. This lab work will fine-tune the conditions needed in orbit, ensuring the company’s space bioreactors operate with precision.
“Our lab helps us figure out what works on Earth first, so we know exactly how to run the process in space,” said Delian Asparouhov, Varda’s co-founder. The company is working with pharmaceutical manufacturers who face challenges with crystallization, purity, and shelf life stability—issues that could be addressed through orbital manufacturing.
Beyond producing better pharmaceuticals, Varda sees major potential in creating intellectual property. By solving manufacturing problems that others cannot, Varda aims to generate patents and licensing deals across the drug industry. Asparouhov expects the new lab to significantly increase the company’s patent portfolio.
The Series C round was led by Natural Capital and Shrug Capital, with additional backing from prominent investors including Peter Thiel, Lux Capital, Khosla Ventures, and Caffeinated Capital. Asparouhov himself is a partner at Founders Fund and a former principal at Khosla Ventures.
Varda has already launched and returned three missions since 2023, and plans to complete four more this year. While its early space manufacturing modules flew aboard Rocket Lab spacecraft, the company has since brought spacecraft production in-house, building two vehicles this year with plans to double that output in 2026.
In addition to pharmaceuticals, Varda generates revenue by using its spacecraft as hypersonic flight test platforms for the U.S. Department of Defense—offering faster, lower-cost testing and the ability to recover hardware post-flight.
With this funding and new lab capabilities, Varda is positioning itself as a pioneer in the emerging market of space-based manufacturing—where microgravity becomes the next frontier for biotech innovation.
