Defense Tech Startup Mach Industries Raises $79M Series A to Revolutionize Military Systems
Defense tech startup Mach Industries has closed a $79 million Series A funding round, led by Bedrock Capital, in a deal that has propelled their post-money valuation to $335 million, according to multiple sources. Head of growth at Mach Industries, Koko Xu, confirmed the investment figures, highlighting that it came from Bedrock and other top-tier investors.
This latest round of funding comes just four months after Mach Industries announced its initial seed round, which raised $5.7 million and was led by Sequoia Capital. The company’s first investments were from Champion Hill Ventures and the 1517 Fund.
Mach Industries is currently working on developing a range of military systems, including unmanned aerial vehicles and hydrogen generation platforms, all powered by hydrogen. While the exact technical details are kept under wraps, typical for defense startups, the company’s core belief is that utilizing field-sourced hydrogen will provide the military with a crucial advantage on the battlefield.
The approach taken by Mach Industries, along with numerous other startups working with the Pentagon, represents a paradigm shift in defense system procurement. Instead of investing billions of dollars in highly sophisticated systems with lengthy development cycles, these emerging companies aim to offer more affordable systems in higher volumes. This model of iterative development programs has become a trademark of Silicon Valley.
Bedrock Capital’s entry into defense tech is not a first for the firm. With an increasing number of investors entering the field over the past eighteen months, driven by the success of multi-unicorns like Anduril, the defense tech sector has seen a surge in government contracts and significant capital raises. Bedrock’s defense investments encompass Anduril, AI company Modern Intelligence based in Austin, and defense systems startup Epirus.
The recent injection of funding for Mach Industries will undoubtedly provide the startup with the necessary resources to advance their hydrogen-powered military systems and solidify their position as a key player in the defense tech industry. As the demand for innovative defense solutions continues to grow, fueled by the need for cost-effectiveness and agility, startups like Mach Industries are poised to redefine the landscape of military systems.
