Mach Industries, a defense technology startup founded in 2023 by then 19-year-old Ethan Thornton, has announced a new $100 million funding round at a $470 million valuation. The investment, led by new investor Keith Rabois from Khosla Ventures and existing investor Geoff Lewis of Bedrock Capital, brings the company’s total funding to approximately $185 million.
The latest round represents a modest increase from Mach’s previous $335 million post-money valuation during its Series A funding in October 2023. This means the company’s valuation has effectively risen by only $35 million over the past year and a half. Despite this measured increase, Mach’s rise in the defense tech world has been rapid. The company has grown from about 20 employees to 140 within the last year.
Mach has developed three weapons systems: Viper, a lightweight jet-powered vertical takeoff and landing unmanned aerial vehicle; Glide, a high-altitude glider plane capable of striking targets from the edge of the atmosphere; and Stratos, an in-air satellite with sensors and communication capabilities operating at extreme altitudes. The startup has also secured significant contracts, including a project with the Army Applications Laboratory to develop a vertical takeoff precision cruise missile.
Thornton, who dropped out of MIT to focus on Mach, describes the company’s growth as a whirlwind experience. He recalls hand-building office furniture with founding team member Ashton Bennett due to financial constraints. Now, Mach is planning its first factory – a 115,000-square foot facility in Huntington Beach, California.
The company’s goal is to create weapons capable of carrying out long-range strikes. Thornton emphasizes that Mach’s work is done in conjunction with national defense decision-makers, including the State Department, Department of Defense, and congressional members. The new funding will be used to expand manufacturing capabilities and develop new products in R&D, including a new propulsion engine.
Thornton acknowledges the gravity of building weapons during a time of rapid AI advancements and global political unrest. He cites Ukraine’s ‘Spider Web’ drone attack on Russian bombers as an example of the new era of pinpointed, AI-powered warfare. Mach aims to build weapons for this new reality more affordably than traditional defense contractors.
