Hardware-testing and engineering startup Nominal raises $240M at $3B valuation

Hardware-testing and engineering startup Nominal Inc. has secured $240 million in new funding, led by Lightspeed Venture Partners and Insight Partners. This investment triples the company’s valuation to $3 billion, from $1 billion in March following an $80 million Series B-2 round. Notable backers include Lux Capital, Sequoia, General Catalyst, Founders Fund, Avenir, Salesforce Ventures, M13, and Lockheed Martin Ventures.

Nominal's platform simplifies the hardware development process by consolidating testing data from various sources. Engineers often need to piece together data from disconnected testing systems to assess a machine's performance under real-world conditions and identify areas for improvement. The platform automates testing, employs AI to analyze results, and expedites the cycle between testing and design, enabling faster iterations.

The issue isn't collecting more data; it's analyzing the vast streams of sensor readings, logs, video, and simulation results to create a comprehensive picture of what occurred.

Nominal's AI agent, Nominal Analyst, examines the data and performs analyses based on the evidence. CEO Cameron McCord stated, "Hardware engineering is getting its AI moment, with real operational value that goes far beyond making existing workflows faster." The company's AI Intelligence Platform unifies all systems needed for testing and design assistance, featuring connections to engineering applications, agent infrastructure, data layers, and physical world sensors.

Customers such as defense technology company Anduril Industries Inc., military shipbuilder Huntington Ingalls Industries Inc., and high-speed aircraft developer Hermeus Corp. utilize Nominal's platform. The company's AI product works alongside engineers in various industries, including aircraft, rocket engines, autonomous vehicles, drones, and energy systems. Nominal helps engineering teams leverage their knowledge and tackle complex problems previously deemed impossible.