London startup, Nothing, has closed a $96 million investment round led by Highland Europe, with participation from GV (Google Ventures), EQT Ventures, C Capital, and Swedish House Mafia. This brings the total raised by the company to $250 million, including two rounds of crowdfunding. Nothing plans to use the funding to further scale its business and expand its lineup of devices, starting with the launch of its next smartphone, the Phone (2), in the coming weeks.
Nothing’s success in raising this investment is notable in a declining smartphone market and challenging economic conditions. However, the company’s strong metrics have attracted investors. Sources confirm that Nothing made $200 million in revenues in 2022 and is on track to exceed that this year. It has sold 1.5 million devices overall, including 800,000 handsets.
The Phone (1) had a limited release and did not launch in the U.S. due to band support issues, but the Phone (2) will address this and be offered in the U.S. market. Initially, the launch will not be in partnership with any handset makers. Nothing’s CEO and co-founder, Carl Pei, has hinted at future hardware form factors and recently shared a concept for a smartwatch.
Nothing also has plans to expand its software offerings. The company has a community of nearly 46,000 people on Discord who suggest concepts for future products. With the new funding, Nothing will likely hire more talent, especially software engineers, to support its growth.
The success of Nothing’s focus and execution will be crucial moving forward. Investors believe there is room for a new player in the smartphone market alongside Apple and Samsung. Tony Zappalà, a partner at Highland, initially hesitated to invest in Nothing but was impressed with the company’s ability to launch and achieve success with its first phone. He praised Nothing’s connection between design, usability, and relationships with users.
Nothing’s CEO, Carl Pei, expressed excitement about the funding, stating that there is demand for an innovative challenger in the consumer tech industry, and with this investment, the company is well-positioned to make tech fun again.