Mach Industries, the high-profile defense technology startup founded by 21-year-old MIT dropout Ethan Thornton, is reportedly on the verge of closing a new $100 million funding round. According to sources familiar with the deal, the round is being co-led by new backer Khosla Ventures—represented by tech investor Keith Rabois—and existing investor Bedrock Capital.
The round is expected to value the startup at approximately $470 million, though sources caution that terms may still shift before the deal closes. If finalized, this would bring Mach Industries’ total capital raised to about $185 million, a striking figure for a company that emerged less than two years ago.
Mach Industries quickly garnered attention not just for its ambitious mission—redefining the future of defense tech—but also for its compelling origin story. Thornton founded the company after dropping out of MIT and attracted early backing from Silicon Valley heavyweight Sequoia Capital, marking the firm’s first foray into the defense sector.
The startup is developing advanced military systems, including vertical liftoff vehicles and weapons capable of operating near the edge of space. Another key innovation is its modular factory approach—small, scalable production sites that can be rapidly deployed as needed to meet increased demand.
Earlier this year, Mach was selected by the Army Applications Laboratory to develop a vertical takeoff precision cruise missile, known as “Strategic Strike.” The company also unveiled plans to build its first major manufacturing facility—a 115,000-square-foot factory in Huntington Beach, California.
Thornton’s vision and Mach’s momentum continue to attract top-tier investor interest, with funding rounds led by major players like Sequoia, Bedrock Capital, and now Khosla. As geopolitical tensions and technological innovation push defense startups into the spotlight, Mach Industries is positioning itself as one of the most closely watched companies in the space.
