Nothing secures £6m community backing to deploy AI-native OS using smartphone context
This article covers Nothing, a London-based consumer tech startup, which has closed a community investment round that raised more than £6m from over 5,000 backers. The funding is intended to deepen user ownership and retail participation and to support the rollout of its AI-native operating system across smartphones, audio products and watches, with implications for startups and investors in the UK hardware ecosystem.
Nothing, the London-based consumer tech company best known for its phones, has closed a community investment round that raised more than £6 million from over 5,000 backers. The move — billed as a way for users to buy shares at the going rate — comes as the firm continues to push an AI-native operating system across multiple device categories and follows a $200 million Series C in September that valued the company at $1.3 billion.
Why it matters
The raise highlights two intersecting trends in European hardware: capital-heavy product roadmaps increasingly rely on mixed funding strategies, and founders are turning to community investment as a way to deepen customer engagement while accessing retail capital. Nothing’s fundraising also sits alongside larger institutional support, underlined by last autumn’s $200 million Series C, signalling that both retail and professional money are flowing into device-led AI plays.
For the UK ecosystem, a high-profile community round from a London-based hardware company serves as a reminder that making consumer devices remains possible at scale in Europe — but it is costly and often requires a blend of backers and sizable institutional rounds.
Inside the product
Nothing describes itself as having built an end-to-end value chain for consumer hardware, aimed at delivering products quickly and consistently. The company says the smartphone will remain a central device in the AI era because of its scale and access to contextual information. Its stated product roadmap centres on an AI-native operating system that is hyper-personalised, adaptive to user context, and capable of executing tasks through intelligent agents.
Planned device form factors include smartphones, audio products, and smart watches, with longer-term ambitions to expand into smart glasses, robots, and electric vehicles. Existing product lines—smartphones and audio hardware—act as the foundation for testing software-driven user experiences; audio products provide lower-cost windows into user interaction, while watches and phones anchor continuous presence and context awareness.
### Who's backing the round
Who are the investors?
The community round brought in more than £6 million from over 5,000 backers, described by the company as angels and community investors. The offer was made at the same per-share price used in the previously announced round, allowing retail participants to buy equity on equal terms.
Nothing’s September Series C — a separate institutional round totalling $200 million at a $1.3 billion valuation — remains the company’s largest recent capital event and demonstrates continuing institutional appetite alongside retail interest. The company did not name lead venture capital firms or other institutional participants in the community announcement.
If you're researching potential backers in this space:
- Explore our list of hardware venture capital firms in the UK
- Browse our directory of hardware angel investors in the UK
Founder perspective
Carl Pei, Founder and CEO, framed the round as as much about community as about capital. In the announcement he said:
From the very beginning, we set out to build a global tech company rooted in openness, creativity, and collaboration. This investment round wasn’t just about raising money, it was driven by our commitment to our community and bringing them on this journey with us. The new members this investment round has drawn in is testament to how deeply our fans believe in what we’re building, and the momentum behind Nothing right now. Together, we’re reaching new milestones and shaping the future of AI-native consumer tech.
Pei’s emphasis on community ownership mirrors a wider tactic among device makers to convert enthusiastic users into long-term supporters, potentially smoothing product launches and boosting word-of-mouth.
The bigger picture
Nothing’s mix of community capital and large institutional funding underscores a broader reality for European hardware ventures: device development remains capital intensive, and founders are experimenting with hybrid funding models to bridge development cycles. The story also adds to evidence that consumer device companies can still attract both retail and professional capital in the UK and Europe, even as investors weigh the technical and market risks of competing with incumbent ecosystems.
For policymakers and funders focused on keeping hardware innovation local, the example highlights the ongoing need for patient capital and supportive supply chain infrastructure if European device makers are to scale. For founders, it illustrates one route — combining community backing with institutional rounds — to sustain an ambitious, product-led growth strategy.
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