K2 Space closes $110M Series B round

K2 Space, a startup satellite manufacturer coming off its first successful test flight, has captured approximately $110 million in Series B capital from investors to aid in its push to ramp up production.

Brothers Karan (CEO) and Neel Kunjur founded K2 in 2022 to disrupt the satellite industry by focusing on large high-capacity spacecraft as launch costs continue to decline. Their view contrasts with this one held by many other industry leaders: Smaller satellites and more of them are the way of the future.

“Advanced space capabilities can’t be built on small, low-powered platforms, but higher capability satellites have been far too expensive for most proliferated applications.” Karan said in a release. “This is the gap K2 fills – making highly capable, powerful satellites available to a much broader market. And because our satellites are designed to proliferate in higher orbits, our constellations require fewer satellites and fewer launches to provide global coverage."

Lightspeed Venture Partners and Altimeter Capital co-led the Series B round. Existing investors Alpine Space Ventures and First Round Capital also participated, among others.

K2 has fetched $180 million in external capital since its inception and touts having expanded from 25 to 90 full-time employees in 2022.

The company also is contracted with Space Force for a 2026 mission to launch a satellite in low-Earth orbit and deploy payloads there, followed by a move into medium-Earth orbit.

That mission falls under a $60 million Strategic Funding Increase agreement, also known as a STRATFI, where Space Force and venture investors each chip in $30 million.

In 2024, K2 successfully conducted an in-orbit demonstration of its hardware that included a flight computer and motor controller.

K2 will use the newfound capital to further scale up its production capabilities, expand the staff and bring more components in-house.

Below is a Bloomberg TV interview with Karan Kunjur that aired Thursday.