Charter Space, an El Segundo, California-based startup, has raised a $5 million seed round to expand its space insurance brokerage, the company announced Wednesday.
The company said it is already servicing more than 50 clients across the U.S. space and defense industrial base since launching its nationally licensed brokerage in May. Crystal Venture Partners, an insurance-focused fund, led the round.
Fintech investors QED and Blank Ventures, early-stage firm Hustle Fund, and Gaingels, a syndicate backing startups with underrepresented leadership, also participated.
Charter Space was a finalist in TechCrunch's Startup Battlefield competition last year. Founder and CEO Yuk Chi Chan said the high cost of underwriting objects like satellites has kept insurance rare in the space industry, even as launches and orbital activity increase.
"Things go wrong in the space industry all the time, so companies are constantly planning contingencies," Chan said. "But insuring objects that go to space is still a rare practice."
That gap is the market Charter Space is targeting. Satellites, launch vehicles, and other space assets carry significant risk, from launch failures to orbital collisions and equipment malfunctions. Traditional insurers have largely avoided the sector because underwriting such assets requires specialized technical knowledge and the potential losses are enormous.
The company's national brokerage license, obtained in May, allows it to operate across state lines and serve a growing customer base that includes satellite operators, launch providers, and defense contractors.
The fresh capital will fund hiring and technology development as Charter Space looks to scale its operations. The company did not disclose its current valuation or revenue figures.
Space insurance remains a small slice of the global insurance market, but demand is rising as commercial launches increase and more companies deploy satellite constellations. Charter Space is betting that as the industry matures, so will the need for coverage that protects against costly failures.
The round brings Charter Space's total funding to an undisclosed amount. The company plans to use the new funds to expand its team and build out underwriting tools tailored to space missions.
