K2 Space Secures $110 Million in Series B to Accelerate Mega Satellite Production

K2 Space, a satellite manufacturing startup aiming to disrupt the industry with lower-cost, high-capacity spacecraft, has raised $110 million in a Series B funding round.

The investment was co-led by Lightspeed Venture Partners and Altimeter Capital, with additional participation from existing investors, including Alpine Space Ventures and First Round Capital. This latest funding brings the California-based company’s total equity raised to $180 million since its founding in 2022.

Lower-Cost, High-Capacity Spacecraft to Challenge Industry Trends

With this fresh capital injection, K2 Space is poised to accelerate production of its innovative "Mega" class satellite buses.

K2 Space believe these high-capacity satellites can be built for under $15 million per unit with lead times of less than three months—significantly reducing costs compared to traditional large satellites. K2 Space and its investors believe that as launch costs continue to decline, the industry will shift away from small satellite constellations and toward larger, more capable spacecraft.

“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 Kunjur, CEO of K2 Space

Securing a Military Mission: Gravitas Set for 2026

K2 Space has already drawn interest from the U.S. military. The company is developing its first government-backed mission, named Gravitas, under a $60 million Strategic Funding Increase (STRATFI) agreement. The U.S. Space Force and venture investors will each contribute $30 million toward the initiative.

Scheduled to launch aboard SpaceX’s Transporter-16 rideshare in 2026, Gravitas will deploy multiple national security payloads in low Earth orbit before maneuvering into medium Earth orbit. This ambitious mission will demonstrate the company’s ability to operate in environments requiring advanced radiation-hardened capabilities.

Expanding Infrastructure

Beyond securing funding and military contracts, K2 Space is scaling up its infrastructure to meet anticipated demand. The company has announced plans to open a 180,000-square-foot factory in Torrance, California.

This new facility will enable the company to scale production, increase in-house component manufacturing, and support workforce expansion.

To bolster its growing defense sector involvement, K2 Space has appointed former Assistant Secretary of Defense for Space Policy John Plumb as its new head of strategy. Plumb’s experience in national security and space policy will be instrumental in guiding the company’s defense business strategy and securing additional government contracts.

Shifting the Space Industry

K2 Space’s rapid ascent signals a potential shift in the satellite manufacturing landscape. While recent years have seen a proliferation of small satellite constellations, the startup is betting on a future where declining launch costs make larger, more powerful satellites an economically viable alternative.

If K2 Space succeeds, it could set a new standard for high-capacity spacecraft, providing a cost-effective solution for commercial and government customers alike.