Nominal, a Los Angeles-based provider of software for hardware testing, has raised $80M in a Series B extension led by Founders Fund. The funding values Nominal at $1B following a prior $75M Series B from Sequoia Capital, bringing total capital to $155M in 10 months. Nominal's Core and Connect platforms enable engineering teams to manage telemetry data, automate tests, and analyze hardware performance in real time. The capital will fuel international expansion and product development.
Defense Funding Surge Accelerates
The round closes amid record defense tech investments, with startups raising $49B in 2025. Customer Anduril pursues $4B at $60B valuation after doubling revenue to $4B. Epsilon3 raised $45M Series A led by Lux Capital for AI testing workflows. Nominal's unified edge-to-cloud stack differentiates by handling 25M data points per second across test lifecycles.
Spreadsheets Stall Mission-Critical Tests
Hardware teams at aerospace and defense firms rely on 1990s-era tools like scripts and spreadsheets, delaying iterations from days to months. Complex systems like hypersonics and autonomous vehicles generate terabytes of telemetry, logs, and video daily. Current solutions create data silos, slowing analysis for thousands of engineers across 60+ organizations. DoD's $179B FY26 RDT&E budget demands faster validation amid rising complexity.
Edge Compute Unifies Test Stacks
Nominal Connect deploys Python-based apps on edge devices for real-time instrument control and automation. Nominal Core processes high-rate data in the cloud for trend analysis, collaboration, and automated reporting. Unlike legacy players like dSPACE or National Instruments focused on hardware or simulations, Nominal integrates telemetry from LiDAR, CAN, and video into a single platform. Anduril cut test loops from 5 hours to real-time using Nominal.
As Sequoia Partner Alfred Lin noted:
“Engineers building complex systems shouldn’t have to work around their tools. Nominal removes that friction to give teams both speed and reliability.”
Founders Fund Validates Unicorn Path
Founders Fund led with participation from Sequoia Capital, Lux Capital, General Catalyst, Lightspeed, and Red Glass Ventures. Founders Fund's defense portfolio including Anduril and SpaceX signals conviction in hardware software infrastructure. The preemptive extension reflects 7x YoY revenue growth and team doubling to 100+ since the initial Series B. Investors back Nominal's shift from defense primes to automotive and robotics.
Test Market Scales to Billions
The test and measurement equipment market stands at $36B in 2026 with 4-5% CAGR through 2030. Aerospace and defense segments drive growth from $9.58B in 2026 to $14.87B by 2034 at 5.66% CAGR. Competitors like Jama Software ($100M+ raised) focus on requirements, while Averna builds custom hardware. Nominal captures share via open APIs and security for classified networks.
Navy Vets Lead Hardware Revolution
CEO Cameron McCord, a Navy veteran and Anduril alum, co-founded Nominal with Bryce Strauss and Jason Hoch from Palantir. The team draws from SpaceX, Palantir, and Anduril, enabling deployments with HII (50% faster tests) and Shield AI. Recent hires include ex-Space Force ops leads, scaling telemetry from 150K to 2M+ points per second.
London Office Targets Global Growth
Nominal plans a London office for international expansion and potential acquisitions. Revenue momentum supports 10x engineering hires in AI and mission ops. Partnerships like HII's multi-year UUV deal and US Navy CCA tests position Nominal for DoD program wins.