Sequoia makes the first defence tech investment in Mach Industries. Defence startup Mach Industries has raised $5.7 million in a seed round led by Sequoia Capital.
This is the first-ever defence tech investment in the venture capital giant’s history.
Such an investment is breaking the pattern as Silicon Valley investors have been reluctant to invest in defence technology. This is largely due to profitability and reputation concerns over how the technology will be used during the global conflict in which the military gets involved.
Sequoia’s funding in defence technology projects the latest interest from Silicon Valley investors in defence and aerospace.
Mach Industries was founded by MIT dropout and Thiel Fellow Ethan Thornton in 2022, which focuses on building a hardware solution using field-sourced hydrogen creation and combustion techniques.
It is working to develop a weapon system that uses the chemical reaction of oxygen and hydrogen to create a powerful explosion that could fuel unmanned aerial vehicles and aerial protection devices.
Headquartered in Austin, Texas, Mach said the funding will be used for product development, hiring talent, and building out facilities.
“We’ve built out facilities in Boston and Austin and are now moving towards production. We are looking to have deployed systems within the next year,” Ethan Thornton told Reuters.
He also clarified that the company already works with the Pentagon on research.
The defence tech market is expected to surge to $184.7 billion by 2027.
The defence sector is largely driven by the U.S. government’s growing demand for innovative technologies to meet its national security goals.