Nothing, Carl Pei’s Startup, Raises $96 Million for U.S. Expansion
Hardware startup Nothing, co-founded by Carl Pei of OnePlus, has successfully raised $96 million in a recent funding round. The London-based company plans to utilize the investment to expand its operations into the U.S. market and launch its upcoming smartphone.
Investment Round Led by Highland Europe and Key Investors
Highland Europe, a European venture capital firm, spearheaded the investment round, with participation from existing investors including GV, EQT Ventures, C Capital, and Swedish House Mafia. Tony Zappala, a partner at Highland Europe, will join Nothing’s board of directors, as announced by the company.
Nothing’s Product Launches and Expansion Plans
Having already introduced over 1.5 million products, including the Ear 1, Ear 2, Ear Stick wireless earbuds, and the Nothing Phone, the company aims to further scale its operations. With the additional funding, Nothing plans to increase production capacity and enhance sales efforts.
Upcoming Smartphone Launch and U.S. Market Expansion
Nothing is preparing to unveil its second smartphone, the Phone 2, on July 11. This new device will feature a processor from U.S. chip company Qualcomm. The funds secured will support Nothing’s expansion into the competitive U.S. market, putting the company in direct competition with tech giant Apple.
Progress and Challenges in Nothing’s Expansion
Carl Pei expressed confidence in Nothing’s progress, highlighting the establishment of a dedicated team in the U.S. and the positive outlook for launching their first phone in the American market this year. However, the company has also faced challenges, including the need to make cost-cutting decisions to ensure survival in the current economic climate.
Startups and Tech Valuations in a Challenging Environment
Nothing’s successful funding round comes at a time when startups face difficulties raising capital due to tighter investment conditions, rising inflation, and a cautious investor outlook toward technology.
Furthermore, Counterpoint Research reports a significant drop in global smartphone sales during the initial quarter of 2023, as shipments recorded a 14% decrease compared to the previous year. This data indicates a downward trend in the smartphone market.