Mach Industries Surges to $1.8 Billion Valuation, Quadrupling Growth in Just One Year

Mach Industries, a defense tech startup launched three years ago by 22-year-old Ethan Thornton, has successfully raised $300 million in a Series C funding round, resulting in a valuation of $1.8 billion, as announced on Monday.

This funding round nearly quadruples the company’s valuation in just a year. In June 2025, Mach secured $100 million at a $470 million valuation. Key investors in this round include Bedrock Capital, Sequoia Capital, and Khosla Ventures.

The round was led by deep tech investors Infinite Capital and Ribbit Capital, which has garnered attention for its engagements in fintech and high-profile deals, ranging from AI coding firms like Cognition to neocloud initiatives like Crusoe.

Considering the capital-intensive nature of autonomous weapons development, Thornton began fundraising a few months ago, sharing with TechCrunch that investor interest was robust.

“We initially aimed to raise $200 million but ended up oversubscribed, leading us to increase it to $300 million, which also became oversubscribed,” Thornton noted about the fundraising journey.

Founded in 2023, Mach has seen rapid growth under Thornton, who notably left MIT to start the company at 19. The current investor enthusiasm is driven by various factors, particularly the increasing demand for innovation in defense technology, as autonomous weapons and drone defense systems have proven effective in Ukraine.

In its short time in operation, Mach has made significant advancements, with five autonomous vehicles in various development stages: Viper, a jet-powered vertical takeoff aircraft; Glide, a high-altitude weapon-launching glider; Stratos, a surveillance platform; Dart, a cost-effective counter-drone interceptor; and Pike, engineered for long-range munitions. The company intends to start production on at least three of these systems next year.

Moreover, this week, it secured a Department of Defense contract for a sixth vehicle, details of which have not been disclosed. This contract, through the Defense Innovation Unit (DIU), focuses on creating a “runway-independent strike aircraft” for the Navy, according to the startup.

Thornton indicated that this aircraft will be substantial, with potential commercial uses.

From about a dozen employees in its inaugural year, the company has grown to around 350 staff, operating a 115,000-square-foot manufacturing facility in Huntington Beach, alongside design and production sites in multiple locations.

“By the end of 2026, we will have inaugurated four new production facilities,” Thornton announced.

In addition, last month, Mach completed a strategic acquisition of solid rocket motor (SRM) startup Exquadrum in a $50 million cash-and-equity deal, outpacing over eight competitors for the acquisition, as reported by TechCrunch.

With the surging demand for drones leading to a significant SRM shortage, Mach’s acquisition enables it to control production and also launch a new commercial endeavor, Mach Energetics, focused on selling these engines. While specific revenue figures were not disclosed, Thornton mentioned a balanced sales mix between government contracts and commercial clients.

Thornton reflected on a defining moment last year when he truly appreciated the company’s explosive growth. “Two years ago, we had all-hands meetings with just 12 people. By our two-year anniversary, we required over 200 chairs, with many attendees standing,” he recalled.

Despite the company’s achievements, he emphasized his pride in the rapid pace of product development. This aligns with the firm’s mission and the broader objectives of the defense tech industry, which seeks to deliver faster, more cost-effective solutions for military and related commercial markets, as opposed to the custom solutions from established defense contractors.

“Traditionally, developing a jet engine takes about four years at best. We transitioned from having no team to firing a jet engine in approximately eight months,” Thornton stated.