Charter Space raised $5 million in a seed round to expand its space insurance business, which addresses the unique risks associated with spacecraft and launch operations. Located in El Segundo, California, the company currently serves over 50 clients in the U.S. space and defense sectors, following the launch of its nationally licensed insurance brokerage in May.
The funding round was led by Crystal Venture Partners, which specializes in insurance, with additional support from fintech investors like QED, Blank Ventures, early-stage venture firm Hustle Fund, and Gaingels, an investment syndicate that champions startups with underrepresented leadership.
While the space industry is fraught with risks, insuring objects that venture into space is still quite rare. Yuk Chi Chan, founder and CEO of Charter Space, points to the high costs of underwriting satellites as a major factor. He mentioned that many traditional insurers are often intimidated by the technical complexities, feeling overwhelmed by “a bunch of scary science words.”
Initially, Chan and co-founder Yukun Yin aimed to create a centralized software platform to consolidate various technical, manufacturing, and testing data for aerospace engineering. However, Chan soon saw the opportunity to integrate this data into the underwriting process, making it easier to insure more satellites. “We want more satellites to get insured, because that means that everything as a whole is much, much safer,” Chan explained. He believes that expanding insurance coverage not only strengthens the space industrial base but also promotes a healthier economy by encouraging alternative investments beyond traditional venture capital.
Historically, financial services in the space sector have been limited, primarily dominated by government entities and defense contractors who operated cautiously until recently. However, the past decade has witnessed a surge in new space companies, largely driven by lower launch costs thanks to SpaceX’s Falcon 9 rocket. This shift has created a rising demand for specialized services like those provided by Charter Space.
Jonathan Crystal, managing partner of Crystal Venture Partners, highlighted Charter Space’s importance, stating, “Insurance is critical infrastructure for a strong and sustainable space industry, and we believe Charter Space is building the platform that will help the space economy scale safely and sustainably.”
Michael Yaworsky, Florida’s commissioner of insurance regulation, stressed the role of insurance in fostering growth within the space sector. He remarked, “The state that leads on insurance will be the destination for capital investing in the industries of the future.” With an eye on long-term American leadership, Yaworsky noted that insurance will lay the groundwork for continued greatness for the next 250 years and beyond.
To date, Charter Space has raised a total of $8 million and plans to use the latest funding to enhance its sales organization and broaden its insurance offerings. Potential new products may include coverage for innovative mission concepts such as space-based nuclear power, lunar missions, and in-space servicing of other spacecraft.
