The Varda Series D round raised $250 million at a $1.6 billion valuation, giving the El Segundo, California space company fresh capital to scale pharmaceutical manufacturing in microgravity aboard uncrewed capsules. Varda told Reuters on September 30, 2026 that the round closed this month and lifts its total funding to $598 million since 2021.
Varda is one of a handful of U.S. companies building fleets of uncrewed capsules that act as orbital laboratories for products that may form with better purity or efficiency in space than under Earth’s gravity.
Key Takeaways: Varda Series D
- Varda raised $250 million in a Series D round at a $1.6 billion valuation, led by Lux Capital and Natural Capital, bringing total funding to $598 million.
- The money will go toward more frequent missions, deeper pharmaceutical partnerships and progress toward the first medicine made in space.
- CEO Will Bruey expects the company’s biggest milestone around 2030, when a microgravity-enabled formulation is given to a person in a clinical trial.
- About 70% of Varda’s payload customers for next year are government-based, and the company expects pharmaceutical work to overtake that share by 2032.
What Is Varda Space Industries?
Varda Space Industries is a private American company founded in 2021 by former SpaceX engineer Will Bruey and Delian Asparouhov. It builds uncrewed W-Series capsules that process materials, chiefly pharmaceuticals, in microgravity and return them to Earth. The capsules re-enter the atmosphere at roughly Mach 25 and also serve as hypersonic test platforms for government customers.
How Does Varda Make Drugs in Space?
Varda’s process follows a repeatable loop:
- Varda develops and tests a drug formulation in its ground laboratories to decide which molecules suit microgravity.
- The formulation is loaded into a W-Series capsule and launched into low Earth orbit.
- In orbit, the absence of gravity reduces sedimentation and convection during crystallization, which may produce crystal forms or particle properties that are hard to reproduce on Earth.
- The capsule re-enters the atmosphere at about Mach 25 and lands.
- Varda returns the processed material to Earth for further development.
Varda’s first mission in 2023 crystallized ritonavir, an HIV drug known for manufacturing difficulties, and the company has since flown six W-Series missions. According to Reuters and Fierce Pharma, the fourth capsule was the one that was not successfully recovered.
Varda Series D Funding at a Glance
| Detail | Information |
|---|---|
| Round | Series D |
| Amount | $250 million (some outlets report $251 million) |
| Valuation | $1.6 billion |
| Lead investors | Lux Capital and Natural Capital |
| Total raised since 2021 | $598 million |
| Headquarters | El Segundo, California |
| Founders | Will Bruey (CEO) and Delian Asparouhov (president) |
| Missions flown | Six W-Series missions since 2023 |
The Varda Series D follows a $187 million Series C in July 2025, led by Natural Capital and Shrug Capital, a $90 million Series B in April 2024 and a $42 million Series A in July 2021, according to CNBC and company-profile data.
What the Varda Series D Means for Space Drug Manufacturing
Ground work matters as much as flight. Varda’s Series C paid in part for a biologics laboratory that screens which drug molecules make sense to send to microgravity and prepares each formulation for flight, CNBC reported in 2025. Varda also points to research aboard the International Space Station as evidence that microgravity can benefit pharmaceutical development, which is the premise behind its commercial capsules.
Varda said the new capital will increase its mission cadence, deepen pharmaceutical partnerships and move it closer to delivering the first medicine made in space, according to statements reported by Fierce Pharma. The company has 28 launches booked with different providers through 2027 to 2029, Reuters reported, and plans to debut a next-generation capsule in 2030.
Bruey told Reuters that about 70% of Varda’s payload customer base for next year is government-based, with the rest commercial pharmaceutical work, and he expects that mix to flip gradually by 2032. Reuters noted that orbital re-entries have drawn interest from the Pentagon’s Golden Dome missile-defense effort, but that Varda has bet on the pharmaceutical industry for much of its commercial operations.
The business of manufacturing in space has grown as the International Space Station, a key research platform, approaches its 2030 retirement, Reuters noted. Investor appetite is also rising: Startup Wired, citing a Reuters report, says private investment in space companies reached $23 billion in the year through June, more than double the earlier level.
What Still Has to Happen Before Space-Made Medicines Reach Patients
No medicine made in space is yet available to patients. Bruey told Reuters that the company’s biggest milestone is expected around the turn of the decade, when a microgravity-enabled formulation is injected into a person in the clinic. In our assessment, Varda must still show that microgravity-formulated drugs perform better in trials, clear regulatory review and justify the cost of orbital production. The $1.6 billion valuation reflects investor belief in that outcome, not proven clinical results.
For related coverage of pharmaceutical manufacturing and healthcare funding, read our reports on Perlen Packaging’s LOG Pharma acquisition and Happy Health’s $75 million raise, or browse our pharmaceutical news section.
Frequently Asked Questions About the Varda Series D
How much did Varda raise in its Series D?
Varda raised $250 million at a $1.6 billion valuation, according to Reuters. Some outlets report $251 million. Lux Capital and Natural Capital led the round, and total funding since 2021 reached $598 million.
What does Varda do?
Varda builds uncrewed W-Series capsules that carry pharmaceutical-processing equipment into orbit, process materials in microgravity and return them to Earth.
Why make drugs in space?
Microgravity reduces sedimentation and convection during crystallization, which may allow crystal forms or particle properties that are difficult to reproduce on Earth and could support new drug formulations.
When will a space-made drug reach patients?
Not yet. CEO Will Bruey expects the first clinical use of a microgravity-enabled formulation around the turn of the decade, so any approval would come later.
How will Varda use the new money?
Varda says it will increase mission frequency, expand pharmaceutical partnerships and move toward the first medicine manufactured in space.
This report is based on Reuters coverage, company statements and trade-press reports, and was last updated on October 1, 2026. It is for information only and is not investment advice.
