Charter Space, a startup based in El Segundo, California, has raised $5 million in a seed funding round. The company, which provides insurance services for the space industry, launched its nationally-licensed insurance brokerage in May and currently serves more than 50 companies across the US space and defense industrial base.
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's founder and CEO, Yuk Chi Chan, stated that the high cost of underwriting assets like satellites is a significant barrier to insuring objects in space.
The company aims to increase the number of insured satellites, which Chan believes will enhance safety within the space industrial base and encourage global investment. Charter Space plans to use the proceeds from this seed round to expand its sales organisation and develop new insurance offerings, including coverage for concepts such as space-based nuclear power and lunar missions.