In the spring, Oxide hit a notable milestone: the company paid income tax. The payment was not the result of an unusual transaction or one-time event. Instead, ordinary operations, selling computers, generated taxable income after accounting for the costs of components, manufacturing, salaries, and running the business. Most startups do not reach this point, since they typically spend years on costs before generating revenue, let alone profit.
The company also reports a very large order backlog. Demand far exceeds supply, so significant cash is needed to secure inventory and fulfill orders. Hardware companies must commit substantial cash to components and manufacturing well before systems reach customers. Oxide felt confident it could satisfy the current backlog using its Series B and Series C funding, its debt facilities, and cash from operations. However, the scale of new demand required caution in accepting additional orders.
To expand capacity, Oxide raised a $445M Series D. Eclipse led the round. Existing investors USIT, Riot Ventures, and Jane Street made large commitments, and Friends and Family Capital and Counterpart also joined. Atreides Management, which had been following the company for nearly two years, was added as a new investor. AMD also became a strategic investor, reflecting a partnership that began with AMD's support for Oxide's platform enablement software and Oxide's early bet on AMD EPYC.
The company says the round builds on its $200M Series C, which was meant to de-risk the business financially and secure its independence. The Series D will help Oxide meet its backlog, keep accepting new demand, and expand manufacturing capacity.
Source: Hacker News · Summarized by HeadlinesBriefing