Oxide raises $200M Series C

Source: Hacker News

Funding Announcement

We have raised a $200 M Series C, and yes, you are permitted a double take: didn’t we just raise a $100 M Series B? And aren’t we the ones that are especially candid about the perils of raising too much money?

Well, yes, on both fronts, so let us explain a little.

Why Raise Capital?

First, we have the luxury of having achieved real product‑market fit: we are making a product that people want to buy. This takes on additional dimensions when making something physical—manufacturing, inventory, cash conversion, and shifting supply chains. Product‑market fit implies getting the unit economics of the business right.

All of this is a long way of saying: we did not (and do not) need to raise capital to support the business.

So if we didn’t need to raise, why seek the capital?

Our investors, seeing the business take off, were eager to support it, and we were eager to have them. They joined us in taking a real leap when it felt like there was a lot more risk on the table. They understand our vision, share our love for customers, and trust us—as we trust them. Raising a Series C purely from existing investors presented a real opportunity.

Even with trusted investors and a quick close, if the business doesn’t need the money, does it make sense to raise? We have always believed that our biggest challenge at Oxide was time — and therefore capital. We spelled this out in our initial pitch deck from 2019:

Challenges slide from Oxide original pitch deck ca. 2019

Challenges and Progress

Six years later, we stand by this, which is not to minimize any of those challenges: the technical challenges were indeed hard; we feel fortunate to have attracted an extraordinary team; and we certainly caught some lucky breaks with respect to the market.

With this large Series C, we have entirely de‑risked capital going forward, which in turn assures our independence.

Independence and Acquisition Concerns

Any buyer of infrastructure has had their heart broken countless times by promising startups that succumbed to acquisition by established players they were seeking to disrupt. The serial disappointments leave a refreshing bluntness in their wake, and it’s not uncommon for us to be asked directly: “How do I know you won’t be bought?”

Our intent in starting Oxide was not to be an acquisition target but rather to build a generational company; this is our life’s work, not a means to an end. With our Series C, customers don’t have to merely take our word for it: we have the capital to assure our survival into the indefinite future.

Future Outlook

If our Series B left us with confidence in achieving our mission, our Series C leaves us with certainty: we’re going to kick butt, have fun, not cheat (of course!), love our customers — and change computing forever.