Los Angeles-based startup K2 Space has secured $50 million in new funding as it aims to develop large-scale satellites to complement the growing array of massive rockets entering the market.
Almost two years after its founding, K2 Space’s co-founders and brothers—CEO Karan Kunjur and Chief Technology Officer Neel Kunjur—anticipate launching their first satellite on a demonstration mission later this year.
The recent funding round was spearheaded by tech investor Brad Gerstner’s Altimeter Capital, with additional participation from Alpine Space Ventures.
This new funding adds to the $8.5 million in seed capital previously raised from investors including First Round Capital and Republic Capital. K2 Space did not disclose its valuation following this latest investment round.
“This round of funding is designed to meet the growing demand for launching constellations of Mega-class satellites,” Karan Kunjur told CNBC.
K2 Space’s Mega-class satellite bus—the spacecraft’s physical framework that provides power, movement, and other functions—is designed to be compatible with both “heavy” and “super heavy” rockets.
Some of these rockets, such as SpaceX’s Falcon 9 and Falcon Heavy, and United Launch Alliance’s Vulcan, are currently operational. Others, like SpaceX’s Starship and Blue Origin’s New Glenn, are expected to become available in the near future.
The company markets its Mega satellites at $15 million each, capable of supporting up to one ton of payload mass. With this design, K2 Space could fit up to ten Mega satellites in a Falcon 9 rocket.
“We have a highly modular design, allowing customers to specify their desired payload mass, the number of satellites to launch, and the amount of propellant required,” Neel Kunjur explained. “Our goal is to offer a range of options tailored to meet each customer’s mission needs.”
K2 Space’s upcoming demonstration mission aims to validate the Mega design for various undisclosed clients.
Additionally, Karan Kunjur noted that K2 Space has secured approximately $6.5 million in Department of Defense contracts over the past eight months, highlighting strong interest from different branches of the DOD in the company’s constellation capabilities.
K2 Space operates from a 15,000 square foot facility in Torrance, California, and employs 28 people, many of whom, like Neel Kunjur, have significant experience from SpaceX.
The Kunjur brothers plan to use the new funds to expand to a 150,000 square foot facility later this year and to increase their workforce to over 50 employees as they prepare to enter satellite mass production.
“Our objective is to transition to the larger facility by the end of the year and scale up production to meet the demands of our customers,” Karan Kunjur said.
