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Mach Industries Secures $100 Million in New Funding Round

Mach Industries, a cutting-edge defense technology startup, is poised to close a significant financing deal worth $100 million. This round is co-led by Khosla Ventures, a new and notable investor, along with existing backer Bedrock Capital, as reported by a source familiar with the proceedings.

Valuation and Financial Context

The new funding round is expected to value the company at approximately $470 million. However, it’s important to note that the deal has not been finalized, and the terms may still be subject to change. The lead investor from Khosla is Keith Rabois.

A Promising Startup Story

Founded by Ethan Thornton when he was just 21 years old, Mach Industries has gained notable attention in the defense tech sector. Thornton dropped out of MIT as a teenager to kickstart this venture, which marks Sequoia Capital’s first investment in defense technology.

Innovations in Defense Technology

Mach Industries is at the forefront of developing advanced vertical takeoff vehicles and precision weaponry designed to operate from the edge of space. Additionally, the company is working on modular factories that can be rapidly constructed and relocated to increase production capacity as needed.

Recent Contracts and Facility Plans

In March 2023, Mach Industries was awarded a contract by the Army Applications Laboratory to develop a vertical takeoff precision cruise missile, dubbed “Strategic Strike.” Furthermore, the company has announced plans for its first manufacturing facility—a 115,000-square-foot site located in Huntington Beach, California.

Total Funding to Date

With this new round of financing, Mach Industries will have attracted a total of approximately $185 million in funding since its inception. The company’s previous financial milestones include a $5.7 million seed round led by Sequoia Capital in June 2023, followed by a $79 million Series A round spearheaded by Bedrock Capital a few months later.

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