A source close to the deal has informed TechCrunch that Mach Industries, a defense technology company founded by 21-year-old Ethan Thornton, is nearing the completion of a $100 million financing round co-led by new investor Khosla and existing investor Bedrock Capital.

According to the source, this new funding round will result in a company valuation of approximately $470 million. However, it’s worth noting that the deal has not yet been finalized and terms are still subject to change. Keith Rabois, a prominent investor at Khosla, is leading the investment.

Mach Industries has garnered significant attention in the defense tech industry, largely due to its unique founding story and connection to Sequoia. At just a teenager, Thornton dropped out of MIT to establish Mach Industries, which marked Sequoia’s inaugural investment in the defense tech sector.

The company is currently developing innovative vertical liftoff vehicles and space-based weaponry. Additionally, Mach Industries is working on designing compact, easily deployable factories that can be rapidly set up to meet increased production demands.

In March, Mach Industries announced its selection by the Army Applications Laboratory to develop a precision cruise missile, dubbed “Strategic Strike,” capable of vertical takeoff. The company also revealed plans for its first factory, a 115,000-square-foot facility located in Huntington Beach, California.

This latest funding round is expected to bring the total amount of funding raised by Mach Industries to approximately $185 million. The company’s funding history includes a $5.7 million seed round led by Sequoia, announced in June 2023, and a $79 million Series A round led by Geoff Lewis, founder of Bedrock Capital, a few months later.