VELO3D goes public: we talk to CEO Benny Buller – 3DPrint.com
VELO3D (NYSE: VLD) went public today with the company listing on the New York Stock Exchange (NYSE) under the symbol “VLD”. The company merged with JAWS Spitfire Acquisition Corporation and now has $ 274 million to grow. We interviewed Benny Buller, CEO of VELO3D, to find out more. At first glance, Benny didn’t seem particularly pleased with this milestone. It turned out he was laser focused on the next steps.
“The only thing I’m thinking about right now is how we end the quarter, how we are going to grow in the next quarter, how we complement the products that we are working on. If the question is: is the glass half empty or half full, I can only see the empty glass. I am fully focused on this. I’m a bit of a party animal really. I had moments of joy when I saw that we had $ 300 million in the bank, but I was more to move the business forward.
The company now has substantial funds to address its concerns and move the business forward. Buller explained his plans for how it would be used.
“We’re not going to spend most of it. What we spend will be spent on increasing sales and marketing. Our strategy is not based on acquisitions. We can make an acquisition, if the right opportunity arises, but it’s not a priority area. Instead, we are looking for organic growth. We will therefore expand to a new manufacturing site and open new offices in Europe and Asia. We will open offices first in Germany and then in Singapore.
Buller suggested that Germany, especially Bavaria, was a true center of 3D printing largely due to the high quality of the local industry, which is particularly relevant for VELO3D. For this reason, the company will establish its European headquarters and technology center in Augsburg as the base for massive European expansion, with the German market to be important to the company. Likewise, Singapore will be VELO3D’s anchor point for its growth in Asia. The company is currently looking for qualified employees to fill sales, technical sales, application engineering, service engineering and marketing positions at its various sites.
However, anchoring its growth, according to Buller, means making parts costs as low as possible for VELO3D customers.
“The most important goal [of ours] is to reduce the cost of parts for the customer, ”Buller said. “This is my most important measure. We also need to be quality and drive more complex geometries so the customer can do more. The ability to produce new geometries is important, as well as the addition of new materials. We strive to increase quality, reduce error distribution and have fewer failure modes. We’ll also improve fault mitigation and fault reporting, as it’s important to know why you had a fault.
VELO3D will introduce universal material quality specifications for all of its systems. These criteria will be applied to all of the company’s material suppliers. These calibrated specifications are intended to provide customers with information on what to expect from a material.
“This will allow customers to get started faster and focus on costs and productivity. We are really anticipating this, [over the next few years], this will allow us to reduce costs and increase production, ”Benny said.
VELO3D is unique in that it focuses very narrowly on a few applications, where it aims to sell many machines to key customers. Concretely, this means areas where flows, whether fluids and / or heat, are managed, according to Buller. Think of thermodynamic engines, rocket engines, manifolds, pumps, heat exchangers and fuel tank valves. In turn, the most interesting industries are aviation, space and power generation. Interestingly, what VELO3D is not look are structural parts.
“We don’t focus on automotive, medical, or mass production. We don’t think structural parts for additives make sense. We think this is the wrong application for the additive. We don’t think there is a very deep value proposition there. CNC is a very powerful technology for this kind of application. What makes sense are parts with complex internal structures, which must be of high quality, without internal supports that you can consolidate into fewer parts. There we can see a deep value proposition for these coins.
In the “3D Printed Metals: Analysis of the 2019 Patent Landscape » report from SmarTech Analysis, the market research company suggested very clearly that, based on its analysis of the metal 3D printing patent landscape, VELO3D was a good company, otherwise the company, to watch in this area. The company’s public listing suggests that SmarTech may have been right with its projection.
Regarding the recent IPO news, the author of this report, 3D printing lawyer John Hornick, told us, “Based on PScores, which is an objective measure of The strength of a company’s patents, VELO3D seems to develop the most important technology in the field of 3D printing of metals. It is a business to watch.
I think the focus on such limited verticals and applications is almost the most interesting thing about VELO3D. This is a great way to approach the market and focus on the most valuable long term prospects that could be converted into lots of sales per customer. Once you convince them and enter the app, they can use multiple machines per customer. The first machine will take time, but the second wave will be very fast, which should accelerate the sales of VELO3D compared to other market players.
I love the flow as an app and think VELO3D has the best go-to-market. It also avoids the long lines of companies looking for the same deals in automotive and medical, which in my opinion is very smart. The IPO of VELO3D will definitely bring more competitiveness to our industry and that will be really good for all of us in the end.