Mach Industries, the fast-rising defense tech startup founded by 21-year-old Ethan Thornton, is set to close a fresh $100 million funding round. According to a source familiar with the deal, the round is being co-led by new investor Khosla Ventures and existing backer Bedrock Capital. If finalized, the new raise would value the company at around $470 million.
The deal isn’t yet closed, so terms may still shift. Keith Rabois, a well-known partner at Khosla Ventures, is reportedly leading the firm’s investment. This latest injection of capital signals continued confidence in Mach’s bold ambitions to modernize national defense with cutting-edge technology.
A Defense Tech Startup Making Waves
Mach Industries has captured industry attention not just for its product roadmap but also for its origin story. Founder Ethan Thornton was a teenage prodigy when he dropped out of MIT to start the company. Mach became Sequoia Capital’s first-ever investment in the defense tech space when it led the startup’s $5.7 million seed round in June 2023.
Since then, Mach has rapidly scaled. Bedrock Capital, led by founder Geoff Lewis, followed up with a $79 million Series A later that year. The upcoming $100 million round would bring Mach’s total raised capital to roughly $185 million in just over a year.
The company’s tech portfolio is just as bold as its fundraising. Mach is building vertical liftoff vehicles and advanced weapon systems designed to operate from the edge of space. It’s also developing compact, scalable manufacturing plants that can be quickly built and deployed to ramp up production as needed.
Earlier this year, Mach Industries announced a major milestone: selection by the U.S. Army Applications Laboratory to build a vertical takeoff precision cruise missile, dubbed “Strategic Strike.” The program underscores the Pentagon’s growing interest in startups like Mach to support next-gen defense capabilities.
In addition, Mach revealed plans to build its first factory—a 115,000-square-foot facility located in Huntington Beach, California. This facility is expected to boost its production capacity and accelerate prototype development.
Growing Investor Confidence in Military AI and Manufacturing
Mach Industries’ swift rise comes amid a broader trend of growing VC interest in defense and aerospace innovation. With increased geopolitical uncertainty and renewed focus on military modernization, investors see national security as an area ripe for disruption.
Khosla’s participation in the new Mach Industries funding round marks another vote of confidence from Silicon Valley. Known for backing bold bets in deep tech and AI, Khosla’s involvement signals that Mach’s ambitions align well with current investor sentiment around defense resilience and advanced manufacturing.
Despite its young founder and early stage, Mach is positioning itself as a serious player in a sector long dominated by legacy contractors. Its focus on scalable production and high-speed innovation could give it a significant edge as defense budgets evolve to favor flexibility and rapid deployment.
Though still in its early stages, Mach has already built a high-profile backer list, a significant government contract, and a promising product pipeline. If this round closes as expected, Mach will have the war chest it needs to expand operations, complete prototypes, and possibly win more military partnerships in the near future.
