Investment
Sequoia makes first defense tech investment in Mach Industries
June 15 (Reuters) – Defense startup Mach Industries has raised $5.7 million in a seed round led by Sequoia Capital, the first-ever defense tech investment in the venture capital giant’s history, the two companies said.
Sequoia’s funding of a technology that aims to use hydrogen creation on the battlefield signals the latest interest from Silicon Valley investors in backing technologies that bolster U.S. national security and working with the Department of Defense.
“There is a technology transition happening, and recent events like the war in Ukraine have highlighted the gap in current defense systems,” Shaun Maguire, a partner at Sequoia who co-led the deal with partner Stephanie Zhan, told Reuters via email.
“There is a major modernization effort underway to advance the U.S. defense technology and build a new generation of military systems.”
Founded by MIT dropout and Thiel Fellow Ethan Thornton in 2022, Mach Industries 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 expanding 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,” Thornton said in a phone interview with Reuters, adding that the company already works with the Pentagon on research.
The defense tech market is expected to surge to $184.7 billion by 2027, driven by the U.S. government’s growing demand for innovative technologies to meet its national security goals, according to research from PitchBook.
Silicon Valley investors have for a while been reluctant to invest in defense technology, due to profitability and reputation concerns over how the technology will be used.
However, growing recognition of the importance of defense technology in protecting national security has prompted venture capital firms including Andreessen Horowitz and Founders Fund to become vocal about funding defense technology startups, including Anduril and Palantir (PLTR.N).
In 2022, venture capital firms invested $34.3 billion in defense technology startups, doubling the amount of investment in 2019, PitchBook data shows.
Sequoia Capital, which just announced it has cut ties with its China and India investment franchise to focus on investing in tech startups in the U.S. and Europe, is looking to back founders working on broader defense applications.
“The future of defense technology will be shaped by many of the advancements we’re seeing today in artificial intelligence, autonomous systems, and space-based capabilities, among other areas,” said Sequoia’s Maguire.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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