Mach Industries raises $600M, doubling valuation to $3.7B in three months
What's the deal? Defense tech startup Mach Industries has raised $600 million in a Series C extension, doubling its valuation to $3.7 billion, the company announced in September. Ribbit Capital, Infinite CapitalDealroom has a profile for this one. Try Dealroom →, Bedrock CapitalDealroom has a profile for this one. Try Dealroom →, and Sequoia backed the round.
Why now? The raise comes just three months after Mach's original $300 million Series C at a $1.8 billion valuation, announced in June. The same investors backed both tranches.
What's the endgame? Mach makes unmanned military vehicles and weapons, including vertical takeoff and landing drones, long-range strike systems, and counter-drone systems. Its pitch is that it builds highly integrated systems that cost less than those from incumbent defense contractors.
The company runs a 115,000-square-foot manufacturing facility at its Huntington Beach, California, headquarters, plus additional sites across the state. In May, it acquired solid rocket motor (SRM) startup ExquadrumDealroom has a profile for this one. Try Dealroom → in a $50 million cash-and-equity deal, beating at least eight other bidders.
That acquisition became the basis for a new business line, Mach EnergeticsDealroom has a profile for this one. Try Dealroom →, which produces SRMs, jet engines, and energetic systems for other buyers. The rise of drones has created an SRM shortage in a market controlled by two incumbents.
The investors: Mach is run by 22-year-old Ethan Thornton, who dropped out of MIT at 19. He landed Sequoia's Stephanie Zhan and Shaun Maguire, marking the firm's first defense tech investment.
After winning a US Army contract earlier this year, Mach also drew in Ribbit Capital, once known for fintech but more recently involved in AI deals from coding startup CognitionDealroom has a profile for this one. Try Dealroom → to neocloud Crusoe.
The signal: Mach's earlier round quadrupled its valuation from $470 million to $1.8 billion in June, so its latest doubling continues a steep climb. The company exemplifies the kind of defense tech startup classic Silicon Valley firms are now spending big on.
Read more: TechCrunch
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