NZXT Raises $103.5 Million to Help Users Game the Chip Shortage

Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

NZXT Raises $103.5 Million to Help Users Game the Chip Shortage
As gamers struggle to get their hands on key components including graphics chips, a PC company that’s offering a workaround of sorts just raised $103.5 million, according to a recent regulatory filing.

NZXT sells PC cases and accessories, as well as custom and pre-built gaming machines. The 17-year-old company closed the nine-figure deal within the last month, and it estimated that $35 million would be used to repurchase stock from co-founder Johnny Hou, who also co-founded L.A.-based coffee accessories maker Acaia.

Headquartered in the City of Industry, about 20 miles east of Downtown Los Angeles, NZXT did not respond to requests for comment on the deal.

Supply-chain issues triggered by the pandemic, as well as rising demand and scalpers, have inflated the price of many PC components and made them harder to come by in recent years. It’s a massive headache for players and streamers, who need the right hardware to run graphically demanding games such as “Grand Theft Auto V,” as well as less intensive titles such as “Fortnight.”

The phenomenon led NZXT to ditch the dedicated graphics card entirely in its new $800 Foundation PC. Instead, the budget-minded machine offers a general-purpose Ryzen 5600G processor. The CPU includes a built-in GPU and is less appealing to scalpers, but it apparently can still handle popular online games like “League of Legends.”

The offering reflects how supply-chain troubles have forced companies to get creative so they can continue shipping out new products.

In addition to supply-chain woes, NZXT recalled tens of thousands of PC cases earlier this year. The company’s H1 mini-ITX model posed a fire hazard, the U.S. Consumer Product Safety Commission said.

Subscribe to our newsletter to catch every headline.

Cadence

NASA’s Newest Robotic Arm is Capable of Functioning in Minus 356 Degrees

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

NASA’s Newest Robotic Arm is Capable of Functioning in Minus 356 Degrees

NASA’s Jet Propulsion Laboratory churns out no shortage of neat science – from the Ingenuity Mars helicopter to the Perseverance Rover and ARTEMIS, but a new project could be their most innovative to date.

Read moreShow less

LA’s Newest E-Scooter Startup Was Founded and Funded By a City Native. Can It Compete with Its Deep-Pocketed Rivals?

Maylin Tu
Maylin Tu is a freelance writer who lives in L.A. She writes about scooters, bikes and micro-mobility. Find her hovering by the cheese at your next local tech mixer.
Yahya Dabbagh
Image by Maylin Tu

Yahya Dabbagh isn’t your typical micromobility startup CEO.

For one, he takes a personal approach to customer service. When he feels a rider is trying to game the system by reporting a scooter broken, in order to earn a free unlock (valued at $1), Dabbagh sometimes will call them up.

Read moreShow less

Robot Bartenders, Space Construction and a Weight Loss App: Highlights From Techstars’ LA Demo Day

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Robot Bartenders, Space Construction and a Weight Loss App: Highlights From Techstars’ LA Demo Day
Andria Moore

On Wednesday, Techstars’ fall 2022 class gathered in Downtown Los Angeles to pitch their products to potential investors in hopes of securing their next big funding round. dot.LA co-sponsored the demo day presentation alongside Venice-based space news website Payload.

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending