Nominal, an Austin-based startup that sells AI software for testing complex hardware such as aircraft and factory systems, has raised US$240 million in a series C led by Lightspeed Venture Partners and co-led by Insight Partners, valuing the company at US$3 billion.

The round follows a March series B extension that raised US$155 million at a US$1 billion valuation. Nominal said it serves 80 commercial and government customers, including defense company Anduril, where CEO and co-founder Cameron McCord previously worked.

The US Air Force selected Nominal in October for a US$71.2 million Strategic Funding Increase (STRATFI) award, which needs matching funds from outside the Air Force.

AFWERX said STRATFI is designed to bridge the gap between earlier Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) work and larger-scale adoption, including transitions into programs of record or broader acquisition.

The Department of the Air Force has also published matching-funds guidance for the program.

🔗 Source: TechCrunch