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Andy Rubin's Essential gets ready for battle with $300 million investment
Andy Rubin’s Essential startup has recently received a $300 million investment, which could go a long way to helping it establish itself in the hyper-competitive market. According to an analysis by Equidate, this means that the company is currently valued at between $900 million and $1 billion, despite the fact its products aren’t even available on the market yet.
Bloomberg reports that the investment paperwork was submitted in late May, only a few days before the company took the wraps off its first two products. In case you’ve missed it, the startup announced the Essential Home, which is an alternative to the Amazon Echo and Google Home, and the gorgeous Essential Phone that goes head to head with flagship devices like the Samsung Galaxy S8 and LG G6, among others.
It looks like investors have plenty faith in Essential and its founder Andy Rubin. And why wouldn’t they, the man created Android, the most popular operating system for mobile devices in the world. On paper, the Essential Phone has a lot of potential, although it’s still too early to talk about how successful (or not) it will be among consumers.
The device has a beautiful modular design with small bezels around the screen and high-end specs. Unfortunately, it also has a high price tag, as it retails for $699. Essential has decided to opt for a different strategy than other smaller companies in the industry, like OnePlus, for example, that are sparking consumer attention with affordable prices. The company clearly thinks that people are willing to spend big to get the Essential Phone, despite the fact that the brand is new to the market.
The recent $300 million investment isn’t the only one Essential has received so far. The company also raised $30 million from Rubin’s Playground Global and Redpoint Ventures last year. Other investors include venture firm Altimeter Capital, Tencent Holdings, and Hon Hai Technology Group (Foxconn).