Nothing looks to its community to raise $5M, wants to be ‘IPO-ready’ in 3 years

The innovative hardware company Nothing is launching a new community investment initiative, allowing its users to purchase shares as part of a $5 million funding round. Set to commence on December 10, this opportunity lets consumers buy into the company at its Series C valuation of $1.3 billion. To date, Nothing has successfully raised $8 million through previous community funding events, attracting more than 8,000 investors. The first of these initiatives was held in 2021, aiming to gather $1.5 million. As a spokesperson for Nothing explained to TechCrunch, "This isn’t just about raising capital; it’s about providing our community and fans the chance to invest while we’re still private and join us on our journey." Investors from the community round will have a rotating position on the company's board, although further benefits associated with such investments remain unclear. Previously, Nothing raised $200 million in its Series C funding round in September, with contributions from notable investors such as Tiger Global, GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, bringing its total capital raised to $450 million. This community funding initiative coincides with strategic changes within the company as it seeks to strengthen its position in a smartphone market dominated by major players like Apple and Samsung. Notably, Nothing is planning to spin off its budget CMF brand and explore the development of AI-focused devices while continuing to enhance its lineup of smartphones and audio products. This year, the company reported crossing $1 billion in cumulative revenue, reflecting a 150% increase from 2024. CEO Carl Pei has expressed ambitions for the company to be “IPO-ready” within three years, stating that timing will hinge on market conditions and the needs of the business at that time. Pei emphasized the importance of building robust systems, governance, and financial discipline akin to those of a public company to ensure sustainable growth. While it remains uncertain if Nothing plans to pursue another funding round prior to its IPO, a company spokesperson noted that there are currently no immediate plans for fundraising, though they are open to discussions. Interested investors can participate in the community round via platforms such as Wefunder and Crowdcube.