Key facts
- Charter Space has raised $5 million in a seed funding round.
- The company provides insurance brokerage services for the space industry.
- Charter Space is already servicing over 50 companies.
- Crystal Venture Partners led the funding round, with participation from QED, Blank Ventures, Hustle Fund, and Gaingels.
- The funds will be used to grow Charter Space's sales organization and insurance offerings.
- New products may include coverage for novel mission concepts like space-based nuclear power and lunar missions.
Charter Space, a startup specializing in insurance for the space industry, announced on Wednesday that it has secured $5 million in seed funding. The company, based in El Segundo, California, launched its nationally-licensed insurance brokerage in May and currently serves over 50 companies within the U.S. space and defense sectors.
The funding round was led by Crystal Venture Partners, with participation from fintech investors QED and Blank Ventures, early-stage venture firm Hustle Fund, and investment syndicate Gaingels. Charter Space aims to use the new capital to expand its sales organization and enhance its insurance offerings, which may include coverage for novel concepts such as space-based nuclear power and lunar missions.
According to Charter Space's founder and CEO, Yuk Chi Chan, insuring space-related assets is a rare practice due to the high cost of underwriting and the complexity of the technology, which often deters traditional insurers. Chan believes that increased insurance coverage will make the space industrial base safer and encourage broader investment from alternative capital sources beyond venture capital and growth equity.
The growth of the commercial space economy, driven by factors like reduced launch costs, has created a demand for specialized financial services. Jonathan Crystal, managing partner of Crystal Venture Partners, stated that insurance is a critical infrastructure for a sustainable space industry, and Charter Space is building a platform to support its safe scaling. Michael Yaworsky, commissioner of insurance regulation in Florida, echoed this sentiment, calling insurance a precondition for growth in space and a magnet for future capital investment.