Mach Industries raises $100M at $470M valuation to scale next-gen weapons

Rising defense tech startup Mach Industries has raised $100 million in a new funding round, bringing its valuation to $470 million. The announcement follows a period of rapid growth and technological development for the company, which was founded just two years ago by Ethan Thornton, who dropped out of MIT at 19 to build Mach full time.

The round was co-led by Keith Rabois of Khosla Ventures and Geoff Lewis of Bedrock Capital, with participation from Sequoia Capital. The latest infusion of capital brings Mach’s total raised to approximately $185 million. While the $470 million valuation marks a modest increase from its $335 million post-money valuation in October 2023, it reflects sustained investor interest amid a cautious funding environment.

From Dorm Room Desks to High-Altitude Weapons Systems

Mach’s ascent in the defense sector has been striking. What began with scrappy, homemade office furniture in a rented Cambridge workspace has grown into a 140-person operation with a soon-to-open 115,000-square-foot factory in Huntington Beach, California. The startup’s headcount has ballooned from just 20 employees a year ago, underscoring the pace of its development.

The company is focused on long-range, next-generation weapons platforms, including:

• Viper: A lightweight, jet-powered VTOL drone that requires no runway for takeoff or landing.
• Glide: A high-altitude glider capable of striking targets from the edge of the atmosphere.
• Stratos: An aerial satellite equipped with sensors and communications technology for extreme-altitude operations.

These systems represent Mach’s broader mission to modernize the defense industry with scalable, cost-effective alternatives to traditional military hardware.

Backed by Government and Shaped by Global Conflict

Mach’s technology and momentum have not gone unnoticed by the U.S. government. The Army Applications Laboratory selected the company to develop a vertical takeoff precision cruise missile earlier this year, further solidifying its credibility in the defense space.

Thornton is candid about the stakes involved in building weapons during a period of geopolitical instability and rapid advances in artificial intelligence. “The work we do is done in direct contact with the State Department, with the Department of Defense, with Congressional members,” he said in a recent interview. He sees Mach’s mission as not only technological, but also strategic — designing systems that reflect the changing nature of warfare, such as the AI-powered drone attacks seen in Ukraine.

Eyes on the Future

With fresh capital in hand, Mach plans to expand its manufacturing capacity and continue research into new technologies, including a propulsion engine that remains under wraps. Thornton describes the company’s evolution as a balancing act — maintaining startup scrappiness while scaling into a serious defense contractor.

Despite its youth, Mach Industries is positioning itself as a formidable player in the new era of defense innovation, where speed, affordability, and technological edge may define the battlefield as much as brute force.

As Thornton puts it, “It’s very, very exciting to have a full factory and a team that’s equal parts industry veterans and new talent. But we’re still just getting started.”