Nothing, the consumer electronics startup shaking up the market, has combined savvy marketing and smart business moves to do something most hardware companies still hesitate to try, openly involve their users in its ownership through crowdfunding. With its latest $5 million community funding round, the company is cementing its reputation as a brand that bets on people-first growth. At the same time, Carl Pei, Nothing's founder, says the company has its sights firmly set on preparing for an initial public offering (IPO) within the next three years. Let’s dive into what this means for the space and why businesses should take note of this bold strategy.
Community-Based Growth Backed by Hard Numbers
For hardware startups, cash flow can often be an uphill battle. Development costs skyrocket, manufacturing requires scale, and competition from giants like Apple or Samsung can feel insurmountable. But Nothing approaches these challenges differently: less secrecy, more inclusion.
The $5 million crowdfunding round, which began on December 10, allows users to buy equity in the company. This isn’t Nothing’s first foray into crowdfunding. Back in 2021, the company raised $1.5 million in minutes through its first campaign. In total, it has engaged nearly 8,000 smaller investors alongside the large institutional players like Tiger Global and GV.
In the last round, the company was valued at $1.3 billion, and it has raised over $450 million so far, with $200 million of that coming earlier this year. Sales numbers are equally encouraging: in 2025 alone, Nothing crossed $1 billion in sales. This trajectory is one most consumer startups can only dream of.
Why Invite Investors From Your Community?
This kind of funding isn’t just about financial capital; it’s about psychological capital. I’ve always been fascinated by why community-based funding creates strong brand advocates. When you let your users become shareholders, you’re transforming them from customers into believers. Crowdfunding platforms like Wefunder and Crowdcube make this easier by providing startups an infrastructure to reach everyday investors while handling the regulatory complexities in the background.
This approach also aligns well with scaling companies wanting more than just a one-time transaction with customers. The community stays loyal because their stakes rise alongside the company's growth, creating free ambassadors for the brand. For Nothing, it’s both a marketing tactic and a funding strategy.
The Bigger Picture: IPO Readiness
Here’s where the longer-term vision comes into play. By stating that Nothing plans to go public within three years, Carl Pei isn’t just giving industry-watchers something to buzz about. He’s signaling that Nothing is serious about governance, transparency, and disciplined growth, all traits investors look for in publicly traded companies.
Becoming IPO-ready is no small feat. It requires putting rigorous systems in place, such as audited financial controls, clear reporting systems, and operational efficiency. Pei’s statement also acknowledges the timing flexibility. Markets fluctuate, and IPO-ready companies don’t jump at the first window, they strategically align their timing for both internal strength and favorable market conditions.
How Startups Can Learn
If you run a startup, whether you're hardware-focused or not, there are lessons to draw from Nothing’s playbook. Here's a step-by-step guide to leveraging crowdfunding for growth while keeping the IPO idea in the pipeline:
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Validate Your Brand Before Ambitious Expansions
Take Nothing’s example. The team used its initial crowdfunding round to test how much market momentum they had. They then scaled that early validation into repeat sales and bigger funding sources. -
Combine Crowdfunding With Traditional VC Support
VCs like EQT and Google Ventures bring credibility. But community funding adds loyalty, creating synergies that larger competitors often can’t replicate. Diversifying funding sources also reduces risks during growth stages. -
Announce IPO Plans Carefully
Being “IPO-ready” doesn’t mean rushing. Publicly sharing this ambition demonstrates confidence to stakeholders, from small equity purchasers to larger firms, but only when backed by strong governance preparations, as Pei has implied. -
Balance Transparency With Strategy
Too much secrecy alienates consumers. Nothing actively shares select milestones like product sales and future strategies while maintaining discretion on competitive advantages. It’s a winning mix that can apply across industries.
Avoid These Common Pitfalls
If you’re flirting with new models of funding or IPO plans, watch out for common mistakes:
- Over-optimism Without Numbers: Announcing lofty valuations without meeting sales benchmarks damages trust. Nothing, on the other hand, pairs its $1.3 billion valuation with credible $1 billion sales. Match storytelling with data.
- Ignoring Community Investors Post-Funding: If you crowdfund, maintain communication with your investors. This keeps small shareholders interested even as you build your larger-scale business. Consider quarterly updates sent directly to backers.
- Neglecting Public Readiness: Many startups focus too heavily on growth and forget IPO necessities. Audits and compliance preparation need years of headway. Don’t tackle these late.
Where Consumer Hardware is Heading
As a serial entrepreneur, I can’t help but notice where Nothing fits into broader hardware trends. By removing friction from direct consumer engagement, toning down walled-garden approaches seen in legacy companies like Apple, it’s pioneering a more open culture. Is Nothing going to dethrone industry titans? It’s hard to say, but what’s clear is the hunger for competition among consumers.
Nothing’s sales success has proved two things: first, buyers still care about quality design, even when faced with an existing stronghold of competitors. Second, community-centric approaches resonate with younger, tech-savvy audiences who want their purchases to align with their values.
Ready to Challenge Your Space?
As exciting as Nothing’s story sounds, its model isn’t limited to tech or hardware industries. Today’s market, regardless of your field, values strong narratives and inclusive strategies. Whether you’re opening up equity, creating loyal user communities, or considering an IPO, the blueprint starts with confidence, data-backed boldness, and community alignment.
If you’re building something game-changing, engage people early. From my personal journey of merging tech and education at CADChain, I can tell you, people root for startups they feel personally connected to. Investors these days aren’t just buying chances at returns, they want shared stories, futures, and success.
How will you engage yours?
FAQ
1. What is Nothing’s new crowdfunding round all about?
Nothing launched a $5 million crowdfunding campaign to let its community members buy equity in the company, reinforcing its people-first growth strategy. Learn more about Nothing's crowdfunding round
2. How much has Nothing raised in total funding so far?
Nothing has raised over $450 million, with $200 million coming earlier this year and $8 million from nearly 8,000 community investors. Discover Nothing's funding journey
3. What is the significance of community-based funding for Nothing?
Community-based funding turns users into shareholders, enhancing loyalty as their stakes grow alongside the company, creating strong brand advocates. Understand the value of community funding
4. What platforms is Nothing using for its crowdfunding campaign?
Nothing is utilizing Wefunder and Crowdcube, two popular crowdfunding platforms, to manage equity purchases by everyday investors. Explore Wefunder | Discover Crowdcube
5. How does Nothing’s sales performance compare to its valuation?
Nothing was valued at $1.3 billion during its last funding round and crossed $1 billion in sales earlier in 2025, showcasing strong growth correlation. Learn more about Nothing's valuation and sales
6. Is Nothing planning to go public?
Yes, Carl Pei announced that Nothing is preparing for IPO readiness within the next three years, prioritizing governance and long-term growth strategies. Discover Nothing’s IPO ambitions
7. How has Nothing integrated venture capital with crowdfunding?
Nothing combines VC backing from firms like Tiger Global and GV with its community-based equity investors to diversify funding sources and reduce growth risks. Learn more about equity strategies
8. Why is Nothing considered a challenger to industry giants like Apple?
With its focus on inclusivity, openness, and Apple-like design quality, Nothing has positioned itself as a competitor to legacy companies in consumer hardware. Explore Nothing’s competitive edge
9. What lessons can startups learn from Nothing’s funding model?
Startups can use crowdfunding for market validation, balance it with VC funding for credibility, and maintain transparency while preparing for IPO readiness. Understand crowdfunding insights
10. What makes Nothing’s approach unique in consumer hardware?
Nothing uses inclusive strategies, combining design excellence with direct customer engagement, maintaining transparency and sharing progress with its community. Learn more about Nothing’s philosophy
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.