Carl Pei, co-founder of smartphone and hardware startup Nothing.
Nothing
Nothing, the hardware startup founded by Carl Pei, co-founder of OnePlus, has secured $96 million in a new funding round to expand its operations in the U.S. market and launch its upcoming smartphone.
In this investment round, led by European venture capital firm Highland Europe, Nothing attracted investments from existing backers including GV, EQT Ventures, and C Capital, as well as Swedish House Mafia, a prominent house music supergroup. Highland Europe’s partner, Tony Zappala, will join Nothing’s board.
With this funding, Nothing plans to scale its operations and increase its product range, having already launched over 1.5 million products. The company has introduced three products so far: the Ear 1, Ear 2, and Ear Stick wireless earbuds, as well as its inaugural smartphone, the Nothing Phone. A new smartphone, the Phone 2, equipped with a Qualcomm processor, is set to launch on July 11.
The funds will also facilitate Nothing’s expansion into the highly competitive U.S. market, where it will face direct competition from tech giant Apple. Carl Pei revealed the company’s plans to enter the U.S. market in December 2022 during an exclusive interview with CNBC.
The Nothing Phone (1).
Nothing
In March, Carl Pei expressed confidence in Nothing’s U.S. expansion, stating that the company already has a team in place and believes it will successfully launch its first phone in the U.S. market this year. He acknowledged the challenges faced in the early stages of the company, emphasizing the limited engineering resources and reliance on external manufacturing.
While expanding, Nothing has also taken measures to optimize costs and ensure its sustainability in the current economic landscape. Carl Pei mentioned the performance review of employees and the selective termination of individuals who did not meet the company’s expectations.
Startups have faced challenges in raising capital as venture capitalists have become more cautious amidst rising inflation and a less optimistic outlook on technology. Additionally, the tech market has experienced a reevaluation in valuations due to factors such as inflation, higher interest rates, and a softer global economy. Smartphone sales have also been affected, with a 14% year-over-year decline in global shipments during Q1 2023, according to Counterpoint Research.
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