Startup News: Key Steps and Lessons from Varda’s Space Manufacturing Breakthroughs for 2025

Discover how Varda is revolutionizing space manufacturing by producing high-value pharmaceuticals in orbit, proving its success and aiming for routine operations.

F/MS BLOG - Startup News: Key Steps and Lessons from Varda's Space Manufacturing Breakthroughs for 2025 (F/MS Europe, Varda says it has proven space manufacturing works — now it wants to make it boring)

The concept of manufacturing in space might seem futuristic, but companies like Varda Space Industries are making it a tangible reality. Established with a clear focus on producing high-value products in microgravity, the company has already demonstrated the viability of its model by returning crystals of the HIV drug ritonavir from orbit. The goal? To turn space manufacturing from an extraordinary event into a routine practice.

Unlike the typical image of space exploration, what Varda is doing revolves entirely around Earth's needs. They are in what they refer to as the "in-space industry," akin to a daisy chain of industries connected by the goal of shipping products back and forth. While manufacturing in orbit sounds like science fiction, the benefits are very real. Pharmaceuticals created in microgravity, for example, can exhibit improvements like more uniform and stable crystal structures, giving them potential advantages over their Earth-made counterparts.

Groundbreaking Success Stories (So Far)

Earlier this year, Varda became only the third corporate entity in history, joining SpaceX and Boeing, that successfully returned something from orbit. The crystals they brought back signified a significant step. Unlike space tourism or satellite launches, these are tangible products aimed directly at industries with immense global markets, like pharmaceuticals.

Returning products from orbit involves complex logistics. Varda utilized a durable capsule launched via SpaceX rideshare, paired with machinery that acted as a space-based "oven" to grow drug crystals under microgravity conditions. After completing the production phase, the capsule re-entered Earth's atmosphere at speeds exceeding Mach 25, an operation that has also fueled interest from defense agencies for hypersonic technology testing.

The Business Angle

Imagine a world where operational costs for manufacturing in space become so "every day" that it’s cheaper to produce complex pharmaceuticals in orbit than on Earth. Varda sees a future where the logistics of manufacturing in space operate as seamlessly as air freight. Their business model is based on a batch-processing method; every demand for production requires a satellite launch. Therefore, as the demand for in-space manufacturing grows, so too does the need for launches. It’s a compelling trickle-down system that could further lower launch costs while increasing the scale of space manufacturing.

What sets Varda apart is not just its innovative products but the consistency and frequency it aims to deliver. Each mission contributes to a foundation where manufacturers can increasingly rely on space-based production. Looking forward, there's an enormous untapped opportunity in producing other high-value goods, such as semiconductors and advanced optical materials, for which microgravity could be a decisive advantage.

Regulatory Challenges

One sticking point has been landing regulations. In its inaugural mission, Varda experienced significant delays, keeping the W-1 capsule in orbit six months longer than initially intended. Regulatory barriers on Earth remain one of the most tedious aspects of in-space manufacturing. The Federal Aviation Administration (FAA) required multiple rounds of licensing before the capsule could land in Utah, encumbering the time-sensitive nature of product shipment.

The company, however, remains optimistic. By refining its processes and working closely with regulatory bodies, Varda is paving the way for smoother operations in subsequent missions.

Opportunities and Future Directions

For space manufacturing to become mainstream, several steps remain. Currently, Varda plans to scale its offerings to cater to government and commercial clients while exploring partnerships in sectors like biotechnology and semiconductors. The potential applications are vast. For instance, imagine creating purer fiber optics in space for data centers on Earth or developing unique biomaterials for heavy-duty use cases.

Moreover, the recurring nature of their model, where each product batch requires a separate mission, provides a promising economic alignment with growing launch capacities worldwide. This system, if successful, could evolve into a predictable cycle, ultimately reducing the cost per mission and lowering the barriers for broader industrial usage.

Most Common Mistakes to Avoid When Considering In-Space Manufacturing

  1. Overlooking scalability: Early-stage businesses might find the costs staggering without a solid plan for scaling their production as demands grow.
  2. Misjudging timelines: The current regulatory landscape for landing capsules can disrupt supply chains and profitability if poorly planned.
  3. Underestimating the technical risks: Space manufacturing requires not just launch capabilities but precise manufacturing methods under unique conditions.
  4. Ignoring the approval pipeline: Especially in pharmaceuticals, securing FDA certification for space-manufactured drugs presents its own set of hurdles.
  5. Jumping in without partnerships: Establishing trust and collaboration with FDA-approved laboratories and government authorities should be a core part of the roadmap.

Small Steps, Big Vision

One of the things Varda is proving to potential partners is that taking incremental steps, with long-term profitability rather than short-term spectacle in mind, is the real disruptive approach. This is precisely the kind of grounded ambition more entrepreneurs need to understand. It’s about creating systems that allow for scalability over time without deceitfully overpromising returns in order to attract early investments.

How You Can Leverage the Space Manufacturing Revolution

If you’re an entrepreneur interested in exploring the possibilities of using advanced manufacturing environments, start by researching industries like pharmaceuticals, microelectronics, and new materials. Businesses can also evaluate collaborative opportunities with companies already setting the stage for space commercialization. For example, SpaceX rideshare services or Rocket Lab's Photon bus could be key resources for exploring initial product functionalities in orbit.

Similarly, staying up-to-date on regulatory progress via organizations like the FAA's commercial spaceflight licensure programs and connecting with other stakeholders in space industries could sharpen your business insight.

My Takeaway

As someone deeply passionate about leveraging technology to drive bold ideas, I find the practical, stepwise approach by Varda inspiring. They are gradually replacing the wonder of "space" with the reliability of wear-resistant, cost-driven industrial logistics, a transition few startups in the industry prioritize effectively. Their dedication to making this process as routine as sending goods aboard an ocean freighter represents not a pipe dream but a calculated ambition with enormous implications for startups globally.

The sooner entrepreneurs embrace the building blocks of space-based businesses, the better prepared they will be to carve out a niche in this remarkable era of emerging economics. While the journey starts with challenges, the roadmap is being written, one successful mission at a time.

FAQ

1. What is Varda Space Industries' primary goal?
Varda aims to revolutionize manufacturing by producing high-value products in microgravity, such as pharmaceuticals, and making space manufacturing routine and cost-efficient. Learn more about Varda Space Industries

2. What was Varda's key demonstration of space manufacturing success?
Varda successfully returned crystals of the HIV drug ritonavir from orbit in 2024, proving the viability of manufacturing in microgravity. Read more about Varda's first orbital achievement

3. How does Varda manufacture products in space?
Products are created in specialized capsules equipped with "space ovens" on satellites in orbit. These capsules operate in microgravity, allowing superior crystal properties to form. Explore how Varda’s process works

4. Why is microgravity important for manufacturing pharmaceuticals?
Microgravity allows drugs to have more uniform and stable crystals, improving their quality and effectiveness compared to Earth-manufactured pharmaceuticals. Learn about microgravity benefits

5. What are the regulatory challenges Varda has faced?
Varda encountered delays due to complex landing regulations, requiring multiple rounds of FAA licensing for its capsules' reentry on U.S. soil. Read about the regulatory challenges

6. What kind of products does Varda plan to scale beyond pharmaceuticals?
Varda is exploring the production of semiconductors, advanced optical materials, and purer materials like fiber optics, using the unique environment of space. Discover Varda’s future product plans

7. How does Varda’s business model depend on rocket launches?
Varda operates on a batch-processing model, where every new manufacturing run requires a dedicated satellite launch, directly tying demand to the growth of the launch industry. Learn more about Varda’s business model

8. What role does SpaceX play in Varda's operations?
Varda uses SpaceX rideshare launches to deploy their space manufacturing capsules into orbit. Learn more about SpaceX Rideshare

9. How does Varda contribute to hypersonic technology research?
Varda’s reentry capsules, which must endure speeds of over Mach 25, offer a unique platform for defense agencies to conduct hypersonic technology testing. Read about Varda’s hypersonic research

10. What should entrepreneurs know if they are interested in space manufacturing?
Entrepreneurs should research high-value products that benefit from microgravity, explore partnerships with established space companies, and focus on scaling production and navigating regulations. Explore opportunities in space manufacturing

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.

Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain

Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.

CAD Sector:

  • Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
  • She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
  • Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.

IP Protection:

  • Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
  • She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
  • Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.

Blockchain:

  • Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
  • She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
  • Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.

For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.

About the Publication

Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.

Mission and Purpose

Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.

Key Features

The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:

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  • AI Co-founder (PlayPal): Guides users through the startup process
  • SANDBOX: A testing environment for idea validation before launch
  • Wellness Integration: Virtual activities to balance work and self-care
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Since its inception, Fe/male Switch has shown impressive growth:

  • 5,000+ female entrepreneurs in the community
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Partnerships

Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.

Recognition

Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.