Nominal, a tiny Los Angeles-based startup, has hit an impressive milestone. With its concentration on the hardware testing solution space, it now proudly carries a valuation of $1 billion. This milestone comes only 10 months after the company raised $155 million in funding. Founded only three-and-a-half years ago, Nominal has rapidly established itself as a major player in the booming defense technology sector.
The young startup provides groundbreaking design automation software that helps hardware engineers more thoroughly and efficiently test their designs before manufacture. Nominal initially began life as a picks-and-shovels startup, serving the defense industry. Everyone has a hardware idea to pitch. It delivered the perfect ingredients for hardware development gold rush that followed. Its CEO and co-founder, Cameron McCord, who previously served as a U.S. Navy submarine officer and worked at Anduril, a notable defense technology company, has steered the company through its rapid growth.
Over the last 10 months, Nominal has secured contracts with four of the five largest defense contractors in the United States. This achievement cements its place at the top of the industry. This speedy customer growth has truly been the wind at the company’s back, helping to drive the company to its recent valuation.
In September, Nominal closed on $75 million in a Series B funding round, led by Sequoia Capital. Not long after, they went on to raise $80 million more in a Series B extension round led by Founders Fund. These investments are a clear vote of confidence by leading venture capital firms in Nominal’s vision and innovation in hardware testing.
Looking forward, Nominal wants to continue moving out of the defense space and into other industrial markets. The company’s industries of focus for growth are automotive, robotics, and complementary industries. This diversification is part of a plan to use Nominal’s existing technology and expertise to serve the needs of more supporters, backers, and investors.