Mach Industries Secures $100M Funding for Defense Tech Innovation

Mach Industries Secures $100 Million in New Funding

Defense technology firm Mach Industries has recently announced a new funding round totaling $100 million, resulting in a company valuation of $470 million. This development was initially reported by TechCrunch last month.

Investment Details

Leading this investment round are Keith Rabois, representing Khosla Ventures, and Geoff Lewis from Bedrock Capital, alongside participation from existing investor Sequoia. This latest infusion of capital brings the total funding raised by the startup to approximately $185 million.

The current valuation signifies a moderate increase compared to the company’s previous funding stage. Mach Industries’ Series A funding, announced in October 2023, established a $335 million post-money valuation. Consequently, the recent $470 million valuation represents a relatively stable growth trajectory, adding $35 million in value over the past year and a half.

Rapid Growth and Innovation

Mach Industries has experienced remarkably swift expansion within the defense technology sector, although the latest funding suggests a measured approach from investors. The company was established in 2023 by Ethan Thornton, who, at the age of 19, paused his studies at MIT to dedicate himself fully to the venture.

In June 2023, Thornton secured a $5.7 million seed round led by Stephanie Zhan and Shaun Maguire of Sequoia. Subsequently, Geoff Lewis, founder of Bedrock Capital, spearheaded a $79 million Series A funding round a few months later.

Expanding Team and Product Portfolio

Over the past year, Mach Industries has significantly increased its workforce, growing from an initial team of 20 to a current headcount of 140 employees, as stated by Thornton. The startup has engineered three distinct weapons systems:

• Viper: A super lightweight, jet-powered unmanned aerial vehicle capable of vertical takeoff and landing, eliminating the need for runways.
• Glide: A high-altitude glider plane designed to engage targets from considerable distances, operating near the atmosphere’s edge.
• Stratos: An in-air satellite equipped with sensors and communication systems, functioning at extreme altitudes.

Contracts and Infrastructure

The company has also successfully obtained substantial contracts and made significant investments in infrastructure. Earlier this year, Mach was chosen by the Army Applications Laboratory to develop a vertical takeoff precision cruise missile. Furthermore, plans were announced for the construction of its first manufacturing facility – a 115,000-square-foot complex in Huntington Beach, California.

Thornton articulated that Mach’s primary objective is to develop weaponry with “the capability to execute strikes over very long distances.” He acknowledged that the rapid expansion of his company has been a dynamic experience. He recalled the early days, when the team, including Ashton Bennett, constructed office furniture from materials purchased at Home Depot due to budgetary constraints.

Navigating a Complex Landscape

“We built all the furniture ourselves,” Thornton shared during a video conference, contrasting their current office environment with commercial furnishings. “I would say we’re still equally resourceful, but now it’s incredibly exciting to have a fully equipped factory and a team comprised of both seasoned industry professionals and newcomers to the defense sector.”

The founder also expressed awareness of the ethical considerations inherent in weapons development, particularly in light of rapid advancements in artificial intelligence and global geopolitical instability. He cited Ukraine’s drone attack on Russian bombers as an illustration of the emerging landscape of AI-driven warfare.

Thornton believes that Mach Industries, alongside other emerging defense tech companies, is creating weapons systems that are more cost-effective than those offered by traditional defense contractors. He underscored that their work is conducted in close collaboration with key national defense stakeholders.

Future Plans

“The work we do is done in direct contact with the State Department, with the Department of Defense, with congressional members,” he stated. Looking ahead, Mach Industries intends to utilize the new funding to enhance its manufacturing capabilities and to invest in research and development for several undisclosed new products, including a novel propulsion engine.