K2 Space is the new startup that has set out to take on SpaceX in the development of satellites. The startup seeks to carve a niche in developing monster satellites that can handle massive rockets compared to those in the market. The brainchild of brother CEO Karan Kunjur and Chief Technology Officer Neel Kunjur expects the company is poised to launch its first satellite later in the year.

K2 Space Capital Raise

The confirmation comes on the Los Angeles-based startup raising $50 million in a new funding round. The latest funding round attracted investments from tech investor Brad Gerstner’s Altimeter Capital and joined by Alpine Space Ventures. It also builds on $8.5 million in seed funding raised last year by investors, including First Round Capital and Republic Capital.

The brothers aim to challenge the way spacecraft are built as they look to take on SpaceX and win big contracts from government agencies and other organizations. Therefore, they are designing systems that would be at par with some of the largest spacecraft ever built. In addition to the two brothers, the startup boasts of an enviable roster of advisors such as former NASA deputy administrator Lori Garver and Lee Rosen, former US Air Force space launch group commander.

With the new capital injection, K2 Space is poised to accelerate the development of Mega class satellites, essentially the structure of a spacecraft that provides power movement and more. The satellite is designed to fit in heavy and super-heavy rockets.

K2 Space Massive Satellites

According to the startup, one of the satellites will go for $15 million each with the capacity to handle one ton of payload mass. In addition, it is working on satellites with a payload of up to 15 tons that will go for $30 million each. The company plans to achieve the price points by developing unique power, attitude control, and thermal control systems.

K2 Space expects the two massive satellites to lower the barrier to accessing power aperture or mass in space application. In addition to their massive size, the satellites are designed to operate in a stackable, scalable architecture; consequently, customers can purchase and operate high-powered constellations at some of the lowest costs. In addition, the products could end up unlocking higher energy orbits.

The startup has planned a demonstration mission to showcase its satellites to numerous customers. Even as the startup works on the massive satellites, it is already eliciting strong interest, having already won about $6.5 million in Department of Defense contracts. The contracts have been streaming in customers impressed by the modular design of the satellites that allows customers to dial in as much payload mass as they wish.

Part of the fresh funds will add a 150,000-square-foot facility that the company will use to develop the satellites. The company, which employs close to 28 employees, plans to grow to more than 50 employees as it prepares for mass production of the satellites. The company plans to launch its first-ever Mega-class spacecraft this year and go for a first flight with customers in 2025.