A new round of funding has seen Nothing, the hardware startup from OnePlus co-founder Carl Pei, raise $96 million from investors. This new capital is meant to facilitate an expansion of the company's operations in the U.S., as well as the launch of its upcoming Phone 2. Set to be released on July 11, the device will feature a chipset from renowned U.S. semiconductor giant Qualcomm.
Between investors GV, EQT Ventures, and C Capital, London-based Nothing, the hardware startup from OnePlus co-founder Carl Pei, recently obtained $96 million in a round of funding. This fresh capital, led by European venture capital firm Highland Europe and supported by house music supergroup Swedish House Mafia, will go towards an expansion into the U.S., launch of the Phone 2, and increased production of its 1.5 million existing products. Tony Zappala, a Highland Europe partner, will join the board. The Phone 2, releasing July 11th, will feature a Qualcomm processor. Specifically targeting the U.S. market, this endeavor could put Nothing in competition with Apple. Pei first mentioned the American expansion in December 2022 on CNBC.
In March, Pei stated to CNBC that the firm's expansion was off to a good start. With a team already on the ground and confidence in launching its first phone in the U.S. market, he noted that the product was progressing well. Despite this, the company had to cut costs in order to survive the current economic climate. On a case-by-case basis, individuals who failed to live up to expectations were let go. He acknowledged that hardware and the industry as a whole is hard, and that the company is not for people looking for "cool company perks". With venture capitalists tightening their wallets in response to rising inflation, investment has become more difficult for startups. Moreover, Counterpoint state that smartphone sales have been under pressure, with global shipments dropping 14% year-on-year in the first quarter of 2023.
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