The California-based defense tech company Mach Industries is reportedly finalizing a $100 million deal co-led by new investor Khosla and existing investor Bedrock Capital. This deal is expected to raise the company’s value to around $470 million, expanding its resources to invest in vertical take-off precision cruise missiles.
Although the startup has not disclosed the clauses and inner proceedings of the deal, it is expected that the startup is looking for more investment for its upcoming factory project and the vertical take-off cruise missile.
Mach Industries is the first defense tech investment of Sequoia, a leading investment company that helps startups build through Initial Public Offering (IPO) and beyond. The startup was initiated in 2023 by Ethan Thornton, and since then, it has gained total funding of about $185 million. The company develops next-generation defense products, including vertical liftoff vehicles and weapons that can work from space’s edge.
Mach Industries-Army Applications Laboratory Collaboration
In March, Mach Industries won the US Army Applications Laboratory’s contract to develop a vertical takeoff cruise missile, named ‘Viper’, and dubbed Strategic Strike. This missile is expected to have a range of 180 miles and carry a warhead exceeding 22 pounds. It will provide the US military with a High Mobility Artillery Rocket System, a cruise missile and a Hellfire munition. The company’s CEO, Ethon Thornton, said in an interview,
“Our goal is to field ready capability as efficiently as possible, working closely with the Army Applications Laboratory to ensure we meet all performance and safety criteria along the way.”
The startup is also looking for investment to initiate its first factory, 115,000 square foot facility in Huntington Beach, California.
