California defense technology startup Mach Industries said Tuesday it raised $300 million, nearly quadrupling the company's valuation to $1.8 billion in a year.
The Huntington Beach startup's rising valuation underscores how defense technology funding is booming as armed conflicts like the Iran War and the Russo-Ukrainian War continue. Infinite Capital and Rabbit Capital led Mach Industries' Series C funding round.
“We are delivering advanced unmanned systems at the pace the threat environment demands and are grateful to our investors for believing in our ability to strengthen American and allied superiority on the battlefield,” Mach Industries CEO Ethan Thornton said in a statement.
Thornton, 22, launched the Huntington Beach defense technology startup in 2023 after dropping out of the Massachusetts Institute of Technology, where he studied aerospace engineering.
The startup builds drones and other defense systems, and develops products such as Viper, its vertical takeoff attack vehicle; Glide, its high-altitude glider capable of launching weapons; and Stratos, its aerial surveillance satellite platform.
Well-known venture capital firms such as Sequoia Capital, Khosla Ventures and Bedrock Capital have backed the defense technology startup.
The financing will help Mach Industries expand its manufacturing, advance its technology and deepen its partnerships with customers including the U.S. Army and Air Force, according to a news release about the financing round. The startup has been growing its business, acquiring rocket maker Exquadrum for $50 million in April.
As the Trump administration pushes to modernize and expand the U.S. military by partnering with major tech companies, some tech workers at companies like Google, Amazon, Anthropic and OpenAI are raising concerns about the use of artificial intelligence in autonomous weapons and mass surveillance.
Despite these concerns, some of the world's largest technology companies are increasing their work with the US military. In April, eight technology companies, including Google, Nvidia and SpaceX, reached a deal with the Pentagon to strengthen the US military and establish an “AI-focused fighting force.”
The effort has also benefited defense technology startups and artificial intelligence companies working with the military. Southern California has been a hub for aerospace and defense technology companies, including Costa Mesa-based Anduril Industries, which reached a valuation of $61 billion this year.
