Hype hasnt been an issue for Andy Rubins new hardware startup, Essential. Supposition has been circling the Android founders next move since he unceremoniously parted styles with Google.
Funding, it seems, hasnt truly been a problem, either. Bloomberg is reporting that the nascent smartphone maker has raised $300 million to bringing its technology to the masses.
A spokesperson for the company declined to offer TechCrunch a comment on the matter, though research reports does seem to jibe with Rubinsrecent appearance onstage at the Code meeting several days after the filing, where he told the crowd, Weve created a substantial millions of dollars. Rubin then appeared to hold up three fingers, recurring with a smile, Hundreds of millions of dollars that I cant talk about.
If true, the Series B, filed last month, sets the companys value at a few hairs shy of a unicorn, at $993 million. That number comes from Equidate, a new firm that offers up valuations of private startups for investment firms. It tells TechCrunch that its own numbers were sourced from public filings.
This marks the second major round of funding for Essential, following a $30 million raise last year, led by Redpoint Ventures and Playground Global, Rubins own investment firm, which also helped incubate the startup.
Rubin had earlier reached out to SoftBank group as a potential source of outside fund. Its financing would have valued Essential at$ 1 billion, but the $100 million investment ultimately fell through, reportedly due in part to the Japanese firms investment with Apple.
The problem: Essential will be going head to head against the new iPhone with its own premium Android handset. And while Apple apparently didnt block the bargain, SoftBank is said to have backed away due to the nature of the competitor.
Essentials second product, a smart home hub, will also be a direct competitor to Apples newly announced HomePod speaker.
While its clear that investors ranging from firms like Tencent to manufacturers like Foxconn have faith in Essentials future, the companys got a tough road ahead of it as it attempts to win over public interest in a pair of highly competitive spaces. Essential COO Niccolo de Masi acknowledged as much in a recent TechCrunch interview, outlining a 10 -year plan filled with modest growth in marketings and consumer loyalty and telling us, Well delay maximizing profitability until the company is more mature because were constructing a brand here.
Rubins name was enough to build up the hype cycle ahead of the phones launch. It remains to be seen how long that and the financing will hold out.
