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Stratasys Invests In Direct 3D Metal Printing Startup

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The most common 3D printers we currently read or hear about print with plastic in some form. Due to its less-durable reputation, compared to metal, the perception exists that the outcome, the printed part, is cheap or useless for anything other than a trinket, keepsake, or prototype model. While that perception is untrue, or inaccurate, many people believe 3D printing will not achieve real market penetration until a metal printer becomes affordable like the popular thermoplastic printers today.

There are many metal 3D printers on the market today; most at a price point that reaches into the six figures. Printing with metal is done every day, around the world, with high end systems from companies, such as, Arcam, ExOne, EOS, and Renishaw. You can see a longer list of the variety of 3D printers in production today at the Wohlers Associates page: Manufacturers and Developers of Additive Systems and Materials.

Stratasys (SSYS) announced last week that they would invest in a seed-stage startup, Desktop Metal, which is working on a metal inkjet 3D printer. Stratasys is known for its fused deposition modeling (FDM) method of 3D printing with thermoplastics primarily. Having worked with them on a limited basis during the 3DRV project, I have seen them actively fostering innovation in the industry – and this includes investing in and collaborating with startups developing promising, potentially disruptive, technologies. The company reports their ownership stake is small and it was not the lead investor in this investment round.

According to Xconomy, "Desktop Metal’s Series A round was led by NEA, Kleiner Perkins Caufield Byers, and Lux Capital, with participation from 3D printing giant Stratasys, Boston hardware investor and prototype shop Bolt, Founder Collective, Data Collective, and angel investors."

“We are looking forward to collaborating with Desktop Metal’s world-class team and helping to drive innovation in our industry,” said Alon Elie, vice president corporate development and ventures, for Stratasys. “Although Desktop Metal is just beginning development, and it is a long way from a commercial product, we believe the technology is very promising.”

Lest you believe that metal 3D printing is in its infancy that would not be the case. One only has only to look at companies, such as, GE, with its LEAP engine nozzle.

Or, if you have a dental crown or bridge in your mouth, there is chance that the coping was 3D printed, in metal. Terry Wohlers told me that millions of copings have been made by additive manufacturing. The metal coping is the main body and structure of a crown. Take a look at 3D Systems Direct Metal system called ProX 100. Stratasys also has a dental 3D printer line, although not a metal printer.

In that same conversation, Wohlers explained that tens of thousands of acetabular hip cups (titanium implants) had been produced. According to Michele Pressacco of Lima Corporate, one of the leading makers of shoulder and hip implants, they have produced well over 40,000 of them. Adler Ortho produces hip and knee implants.

Stratasys is no stranger to metal 3D printing; their Stratasys Direct division acquired Solid Concepts in 2014, a custom manufacturing service bureau, with expertise in using some of the above-mentioned machines. The investment in Desktop Metal is just one more step in diversifying beyond FDM and thermoplastics into other market segments and technologies.

What the market seems to want is a desktop metal printer under $5,000, but so far, none have come close. In 2014, a company called Aurora Labs tried a Kickstarter campaign, only to cancel the effort. Others have tried, with homegrown systems, but the results are often rough or not very detailed. David Hartkop, creator of the Mini Metal Maker, ran an unsuccessful Indiegogo campaign earlier this year with his metal clay machine.

I’m not sure of the price point that Desktop Metal is targeting as the new startup does not even have a website up yet. We will have to keep close tabs on this startup.