Charter Space raises $5M to expand space insurance business

Charter Space has raised a $5 million seed round to grow its space insurance business. The El Segundo, California-based startup said it is already serving more than 50 companies across the U.S. space and defense industrial base.

The company launched its nationally licensed insurance brokerage in May. Crystal Venture Partners led the round. QED, Blank Ventures, Hustle Fund and Gaingels also participated.

Founder and CEO Yuk Chi Chan started Charter Space with co-founder Yukun Yin. They first set out to build software that would bring together customers’ aerospace engineering, manufacturing and test data. Chan later saw potential in using that data in insurance underwriting. He has said the high cost of assessing risks such as satellites helps explain why space insurance remains uncommon.

Charter Space has raised $8 million to date. It plans to use the new funding to expand its sales organization and insurance offerings. Potential products include coverage for novel mission concepts such as space-based nuclear power, lunar missions and in-space servicing of other spacecraft.

The article links demand for services such as Charter’s to the growth of new space companies over the past decade, including as launch costs fell. It also quotes Crystal Venture Partners managing partner Jonathan Crystal describing space insurance as important infrastructure for the industry.