Value of Huntington Beach defense tech startup balloons to $1.8 billion
California defense technology startup Mach Industries said Tuesday it has raised $300 million, nearly quadrupling the company’s valuation to $1.8 billion in a year.
The Huntington Beach startup’s soaring valuation underscores how defense technology financing is rising as armed conflicts such as the Iran war and the Russia-Ukraine war continue. Infinite Capital and Rabbit Capital led Mach Industries’ Series C financing round.
“We are delivering advanced unmanned systems at the speed the threat environment demands, and we are grateful to our investors for believing in our ability to strengthen American and allied superiority on the battlefield,” Mach Industries Chief Executive Officer Ethan Thornton said in a statement.
Thornton, 22, founded the Huntington Beach defense technology startup in 2023 after leaving the Massachusetts Institute of Technology, where he studied aerospace engineering.
The startup produces drones and other defense systems and develops products such as the vertical take-off attack vehicle Viper; Glide, a high-altitude glider capable of launching weapons; and Stratos, an airborne satellite platform for surveillance.
Well-known venture capital firms such as Sequoia Capital, Khosla Ventures and Bedrock Capital backed the defense technology startup.
The funding will help Mach Industries expand its production, improve its technology and deepen partnerships with customers including the U.S. Army and Air Force, according to a news release about the funding round. The startup is expanding its business by purchasing rocket maker Exquadrum for $50 million in April.
As the Trump administration seeks to modernize and expand the US military by partnering with major technology companies, some tech workers at companies such as Google, Amazon, Anthropic and OpenAI are expressing 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 tech companies, including Google, Nvidia and SpaceX, struck a deal with the Pentagon to strengthen the US military and create an “AI-first combat 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 $61 billion valuation this year.
