2024-07-03 16:25:44
3D printing service company Shapeways has declared bankruptcy. Dutch BV, which has 25 employees, has been declared bankrupt by the East Brabant Provincial Court. The parent company has ceased operations in the United States. Meanwhile, Nano Dimension is acquiring Desktop Metal for $135 million in cash.
As I wrote recently, some companies in the additive manufacturing industry are struggling. The original Dutch company Shapeways was one of the pioneers in the field of additive manufacturing production, but it was the next victim to fail to live up to expectations and filed for bankruptcy.
There were already signs in May that
Recently, the now-US company defaulted on its first quarter results for not submitting them on time. Management added in mid-May Securities and Exchange Commission The company said it had insufficient liquid assets and might have to file for bankruptcy. The company took this step yesterday. The company has ceased all operational activities and filed for bankruptcy in the United States. At the same time, all senior management, including CEO Greg Kress, have resigned.
Sad times for the Netherlands branch
Plant manager Jules Witte informed employees at the Dutch branch on Monday.
“Earlier this week, I had to deliver the sad news to our dedicated team that Shapeways was filing for bankruptcy,” he wrote in a post on LinkedIn. “This is a somber moment in my nearly 12-year journey at Shapeways, where I have fostered talent, challenges, and opportunities to scale emerging technologies into mature fulfillment services for diverse and demanding industries. Over the years, we have been able to scale production in Eindhoven into an efficient production facility with deep expertise in SLS, MJF, SLA, MBJ, and MJP. We have been celebrating success locally and have an extremely economical, highly profitable facility generating significant revenue.”
Jules Witte said bankruptcy was a new shock that caused people to be skeptical and surprised.
The optimism at the beginning of the year, however…
At the beginning of this year, when announcing the annual figures for 2023, the management remained optimistic. It was stated that the company had signed a contract worth $1.5 million with a leading American car manufacturer. In 2023, the turnover of the top 25 companies increased by 29%. And at the end of 2023, Shapeways launched an instant quotation software for CNC parts. This is part of the strategy to further transform the company into a software company. At the same time, Shapeways has laid off 15% of its employees in the fourth quarter of 2023. It has been explained in the explanation of the numbers. Together with the consultant Seeking strategic alternatives. However, the figures paint a different picture from the optimistic growth: despite an increase in turnover to $34.5 million, the net loss in 2023 reached $43.9 million, compared with $20.2 million in the same period last year. At the end of 2023, the company still has $41,000 in cash
Software sold to management
In early May, Shapeways announced that it had sold its software business, excluding its InShape software package for end-to-end workflows, to OTTO dms, a company wholly owned by Greg Kress (then CEO) and Greg Rothman, who led the software division. Shapeways’ board of directors established an independent special committee to oversee the divestiture of the company’s software business. The special committee hired external advisors and engaged in a competitive process for the sale of the company’s software assets, which culminated in the company accepting management’s recommendation to acquire the software business. It was also stated at the time that the company continued to seek alternatives for its production activities and was in discussions with potential buyers.
IPO has high hopes
Three years ago, Shapeways went public with high expectations. Through a reverse initial public offering (SPAC), the company raised $195 million from investors, but this money has been completely burned. The company was valued at 410 million euros at the time of the IPO, which was lower than the valuations of other 3D printing companies such as Desktop Metal and Markforged at the time. Three years ago, Greg Kress expected Shapeways’ revenue to increase 15 times by 2025. Revenues in 2020 were $32.8 million. Therefore, the turnover of $34.5 achieved in 2023 is far lower than the more than $400 million he predicted in 2021.
photo: In 2015, the Shapeways 3D printing factory opened in Eindhoven (Photo courtesy of Shapeways)
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