Varda’s W-3 capsule after landing the Koonibba Test Range in South Australia. Photo: Varda

Varda Space Industries raised a $187 million Series C round to scale the company’s work to build in-space pharmaceutical labs and hypersonic reentry test capabilities. 

Varda has completed three launch and re-entry missions — returning two capsules already this year, one in February and another in May. The missions have tested pharmaceutical properties in space and also carried tests for hypersonic reentry. 

Varda is working to scale and commercialize in-space pharmaceutical manufacturing. The company noted it is scaling up in pharmaceutical talent and has hired a team including structural biologists and crystallization scientists. 

“With this capital, Varda will continue to increase our flight cadence and build out the pharmaceutical lab that will deliver the world’s first microgravity-enabled drug formulation,” Varda CEO Will Bruey said in a release. 

Natural Capital and Shrug Capital led the funding round, with participation from Founders Fund, Peter Thiel, Khosla Ventures, Caffeinated Capital, Lux Capital, and Also Capital.

Natural Capital investor Ravi Tanuku, who joined the board with this raise, highlighted the company’s potential in hypersonics and pharmaceuticals, particularly in microgravity drug crystallization in a post about the investment. “We believe Varda sits at the intersection of national-security need and pharmaceutical innovation — an uncommon combination with significant strategic and financial potential,” Tanuku wrote.