Observed Signal · Mar 5, 2026 · Funding · Source: TechCrunch · Impact: 3/5 · Sentiment: Positive
Nominal Hits $1B Valuation, Expands into New Markets
Nominal, a 3.5-year-old Los Angeles-based startup that provides software for hardware engineers to test designs, announced an $80M Series B extension at a $1 billion valuation led by Founders Fund on March 5, 2026. The extension follows a $75M Series B led by Sequoia in September. Nominal began serving the defense sector and says it secured four of the five largest defense contractors as customers in the past 10 months; Anduril is cited as a marquee customer. CEO and co-founder Cameron McCord, a former U.S. Navy submarine officer and Anduril alumnus, said the deal was led by Founders Fund partner Trae Stephens. Other participants in the financing include Sequoia, General Catalyst, Lux Capital, Red Glass, and Lightspeed. Nominal plans to expand into industrial markets such as automotive and robotics.
A startup in hardware-testing software reached unicorn status with participation from major venture firms and plans to expand from defense into industrial sectors; notable but not a platform-level policy or technical change.
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Key Takeaways & Evidence Grounding
- Nominal raised an $80M Series B extension at a $1 billion valuation, led by Founders Fund.
- Nominal previously raised a $75M Series B led by Sequoia in September.
- Nominal is a 3.5-year-old, Los Angeles-based company that provides software to help hardware engineers test designs and began focused on defense.
- In the last 10 months Nominal landed four of the five largest defense contractors as customers; Anduril is a named marquee customer.
- Investors in the round included Founders Fund, Sequoia, General Catalyst, Lux Capital, Red Glass, and Lightspeed.
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Anduril Eyes $60 Billion Valuation in New Funding Round
Anduril is pursuing a new multibillion-dollar funding round that would value the defense-technology company at about $60 billion, according to reports. The round is reportedly being led by Thrive Capital and Andreessen Horowitz, with Lux Capital and Founders Fund expected to participate. The company closed a Series G in June for $2.5 billion at a $30 billion valuation, and Bloomberg has reported the new round could bring in up to $8 billion of fresh capital. The fundraising occurs amid broader defense-industry tensions: the U.S. government is canceling contracts with Anthropic following a contract dispute, and Secretary of Defense Hegseth has threatened to label Anthropic a supply-chain risk. Palmer Luckey has publicly supported the government’s stance on reducing reliance on external technology suppliers.
Defense Tech Startup Mach Industries Doubles Valuation to $3.7B
Defense technology startup Mach Industries announced a $600 million Series C extension round, doubling its valuation to $3.7 billion just three months after its initial Series C. Investors include Ribbit Capital, Infinite Capital, Bedrock Capital, and Sequoia. The company manufactures unmanned military vehicles and weapons, including drones and counter-drone systems. It recently acquired solid rocket motor (SRM) startup Exquadrum for $50 million to address supply bottlenecks. The funding will support expansion of its manufacturing facilities in California and the growth of new business units Mach Energetics and Mach Propulsion. Founder Ethan Thornton, a 22-year-old MIT dropout, has attracted significant venture capital interest, positioning Mach as a key player in the defense tech space.
Modal Labs Eyes $2.5B Valuation Amid Funding Talks
Modal Labs, an AI inference infrastructure startup, is in early talks with venture capital firms to raise a financing round valuing the company at about $2.5 billion, according to multiple sources. If completed at those terms, the round would more than double Modal’s valuation from the $1.1 billion announced under an $87 million Series B less than five months earlier. General Catalyst is reported to be in discussions to lead the round. Sources told TechCrunch Modal has an approximate $50 million annualized revenue run rate (ARR). CEO and co-founder Erik Bernhardsson denied an active fundraising process, calling recent VC contact general conversations. The story situates Modal among several inference-focused companies drawing large rounds and valuations, citing competitor financings from Baseten, Fireworks AI, Inferact (vLLM creators) and RadixArk. Modal’s earlier investors include Lux Capital and Redpoint Ventures.
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