Tech Startup Nothing has secured $96M in funding for its US expansion before the launch of Phone (2).

London-based tech startup Nothing has successfully closed its recent fundraising round with $96 million secured from both new and existing partners. The company was founded in 2020 by Carl Pei, the former co-founder of the smartphone maker OnePlus.

In an announcement on Twitter, Nothing revealed that the investment round was led by the European venture capital company Highland Europe with participation from GV, EQT Ventures, and C Capital, along with strategic stakeholder Swedish House Mafia. Due to the investment, Tony Zappala, a partner at Highland Europe, will join the company’s board.

We’re excited to share that we’ve recently closed a $96M financing round, led by Highland Europe, with participation from @GVteam , @EQTVentures , C Capital and @swedishousemfia alongside others.

As we’ve just crossed 1.5M products sold, this marks a new milestone on our journey…

— Nothing (@nothing) June 28, 2023

Nothing Plans to Explore the US Tech Market for Its Phone (2) Launch

The funds will be used to develop and introduce new products, as well as to boost sales and facilitate the company’s expansion into the United States market. Additionally, the new capital will be utilized to support the launch of its upcoming smartphone, the Phone (2). The highly anticipated Phone (2) is scheduled for release on July 11 and will feature a Qualcomm processor. With its sights set on the US market, Nothing aims to compete directly with tech giant Apple.

The London-based startup, which has factories in India and China, has already made a mark in the tech industry with its product lineup, which includes wireless earbuds such as Ear 1, Ear 2, and Ear Stick, as well as the Nothing Phone, its inaugural smartphone.

Armed with the recent funding injection, Nothing aims to strengthen its talent base and continue delivering innovative and fun consumer tech products. The company currently employs 450 individuals and is expanding its software engineering team alongside its hardware specialists. The team’s dedication and execution will play a crucial role in solidifying the company’s position as a prominent challenger in the consumer tech industry.

Nothing Records 1.5 Million Product Sales to Date

Despite the challenging landscape of the smartphone consumer market and the economic climate, Nothing has achieved significant milestones and is poised for further growth. The company reported $200 million in revenues in 2022 and is on track to exceed that figure this year. The firm said it had sold 1.5 million devices, with 800,000 phones sold to date.

“In just over two years, we’ve assembled one of the strongest teams in the industry and sold over 1.5 million devices worldwide. It’s clear that there’s a real demand for an innovative challenger in the consumer tech industry. With this new round of financing, we’ve never been better positioned to realize our vision to make tech fun again,” the company’s CEO, Carl Pei, said in a statement.

The successful fundraising round demonstrates investor confidence in the company’s product offerings, business model, and potential. The upcoming Phone (2) launch, which will also be made available to American consumers, marks a pivotal moment for the company’s expansion plans. While the Phone (1) had a limited release due to radio band support, the upcoming Phone (2) has been designed to address this issue and target the lucrative US market.

Looking ahead, the company’s future product roadmap remains exciting. With a vibrant community of nearly 46,000 members on Discord, the firm actively engages with its user base to gather insights and ideas for future products.

While a smartwatch production has been hinted at, Nothing’s focus extends beyond hardware. The company’s CEO has also expressed interest in improving software experiences and exploring areas where privacy-focused apps and services can thrive.