Two-year-old defense tech Mach Industries confirms $100M raise led by Khosla, Bedrock

Mach Industries, a rapidly growing player in defense technology, has successfully raised $100 million in its latest funding round, achieving a valuation of $470 million. The funding was led by new investor Keith Rabois from Khosla Ventures, alongside existing investor Geoff Lewis of Bedrock Capital, with participation from Sequoia Capital. This brings the total funding raised by the startup to approximately $185 million to date. This funding round reflects a slight increase in valuation from the company’s previous Series A round in October 2023, where it was valued at $335 million post-money. The current round indicates cautious optimism among investors, as the increase represents just $35 million in additional value over the last year and a half. Founded in 2023 by then-19-year-old CEO Ethan Thornton, who left MIT to pursue his vision full-time, Mach Industries has experienced explosive growth. The company has expanded its workforce from around 20 employees to 140 in just a year. Mach has developed cutting-edge weapons systems, including the Viper, an innovative jet-powered vertical takeoff and landing UAV; Glide, a high-altitude glider capable of striking targets from great distances; and Stratos, an advanced in-air satellite with sophisticated sensors. Earlier this year, Mach secured a significant contract with the Army Applications Laboratory for the development of a precision vertical takeoff cruise missile and announced plans for its new manufacturing facility in Huntington Beach, California, spanning 115,000 square feet. Thornton expressed his commitment to creating advanced weaponry designed for long-range operations. Reflecting on the company’s rapid ascent, Thornton recalls the early days when they moved into their first office in Cambridge, Massachusetts. The startup faced financial constraints that led him and co-founder Ashton Bennett to construct their own furniture from plywood and 2x4s. Now, with a professional team and a dedicated factory, they are poised for further innovation. Thornton is acutely aware of the current global landscape, marked by advancements in AI and political tensions. He cites the Ukraine conflict as a reference point for the evolving nature of warfare, emphasizing that Mach Industries aims to create cost-effective solutions in this new era of defense technology. The company collaborates closely with national defense stakeholders, including the State Department and the Department of Defense, ensuring their innovations align with national security needs. With the new funding, Mach Industries plans to enhance its manufacturing capabilities and invest in research and development for upcoming products, including a new type of propulsion engine that remains under wraps for now.