nothing looks to its community to raise $5m, wants to be ‘ipo-ready’ in 3 years
Nothing Offers Stock to Community in $5 Million Investment Round
Nothing, the innovative hardware manufacturer, is providing its user base with an opportunity to acquire company stock. This is part of a new community investment initiative totaling $5 million.
Investment Details
The investment round, scheduled to begin on December 10, will allow consumers to purchase shares at the company’s Series C valuation of $1.3 billion. This represents a unique chance for direct ownership.
To date, Nothing has successfully secured $8 million through two prior community investment rounds, involving contributions from over 8,000 individuals. The first such event was held in 2021, with a target of $1.5 million in funding.
Rationale Behind the Offering
According to a Nothing spokesperson who spoke with TechCrunch, the primary goal isn’t capital acquisition. Rather, it’s about extending an investment opportunity to the company’s community and loyal fans while still operating privately.
Investors within the community are granted a rotating position on the company’s board of directors. The specific benefits beyond board representation for participating in these rounds remain unspecified.
Previous Funding and Corporate Restructuring
In September, Nothing secured $200 million in its Series C funding round. Key investors included Tiger Global, GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. The total funding raised by the company now stands at $450 million.
This community round coincides with strategic changes to Nothing’s corporate structure. These adjustments are aimed at increasing the company’s market share within the highly competitive smartphone industry, dominated by major players like Samsung and Apple.
Future Plans and Growth
Nothing is in the process of spinning off its more affordable CMF brand. Simultaneously, the company intends to explore the development of devices focused on artificial intelligence, while continuing to innovate in smartphones and audio products.
The company reports exceeding $1 billion in cumulative revenue this year, marking a substantial 150% increase compared to 2023.
IPO Aspirations
CEO Carl Pei communicated via email to TechCrunch that Nothing is actively preparing for a potential Initial Public Offering (IPO) within the next three years. The precise timing will be contingent upon market conditions and the overall business strategy.
Pei emphasized the importance of operating with the discipline required of a public company. This includes establishing robust systems, governance structures, and financial controls to prioritize sustainable growth and long-term planning.
Fundraising Outlook
It is currently uncertain whether Nothing plans to pursue additional funding rounds prior to a potential IPO. A company spokesperson indicated that immediate capital raising is not a priority, but the possibility remains open for future consideration.
Participation Platforms
Individuals interested in participating in the community investment round can utilize platforms such as Wefunder and Crowdcube to facilitate their investment.