Value of Huntington Beach defense tech startup balloons to $1.8 billion

California defense tech startup Mach Industries said Tuesday it raised $300 million, nearly quadrupling the company’s valuation to $1.8 billion within a year.

The Huntington Beach startup’s soaring valuation underscores how defense tech funding is booming as armed conflicts such as the Iran war and the Russian-Ukrainian war continue. Infinite Capital and Rabbit Capital led Mach Industries’ Series C funding round.

“We’re delivering advanced unmanned systems at the pace the threat environment demands, and we’re grateful to our investors for believing in our ability to strengthen American and allied superiority on the battlefield,” Mach Industries Chief Executive Ethan Thornton said in a statement.

Thornton, 22, launched the Huntington Beach defense tech startup in 2023 after dropping out of the Massachusetts Institute of Technology, where he studied aerospace engineering.

The startup builds drones and other defense systems, developing products such as Viper, its vertical-takeoff strike vehicle; Glide, its high-altitude glider capable of launching weapons; and Stratos, its airborne satellite platform for surveillance.

Well-known venture capital firms such as Sequoia Capital, Khosla Ventures and Bedrock Capital have backed the defense tech startup.

The funding will help Mach Industries expand its manufacturing, advance its technology and deepen its partnerships with customers that include the U.S. Army and Air Force, according to a news release about the funding round. The startup has been growing its business, acquiring rocket-maker Exquadrum for $50 million in April.

As the Trump administration pushes to modernize and expand the U.S. military by partnering with major technology companies, some tech workers at companies such as Google, Amazon, Anthropic and OpenAI are raising concerns about the use of artificial intelligence in autonomous weapons and mass surveillance.

Despite these worries, some of the world’s largest tech companies are increasing their work with the U.S. military. In April, eight technology companies, including Google, Nvidia and SpaceX, struck a deal with the Pentagon to strengthen the U.S. military and establish an “AI-first fighting force.”

The effort has also benefited defense tech startups and AI companies that work with the military. Southern California has been a hub for aerospace and defense tech companies, including Costa Mesa-based Anduril Industries, which reached a $61-billion valuation this year.