Is Stratasys Looking to Diversify?

Financial news surrounding additive manufacturing (AM) hasn’t been exactly uplifting in 2015. For all of its promise, AM seems to be falling victim to the hyped expectations surrounding it over the last few years, at least if you go by the metrics of share price. Not every company has taken a hit, but none of the big names in 3D printing are exactly raking in investor cash at the moment, either.

One potential method of ensuring a steady business model is through diversification. 3D Systems has certainly followed the path of “expansion through acquisition,” though it just saw its CEO step down. Stratasys may be attempting a similar strategy, albeit at a much, much more cautious pace.

Ric Fulop is co-founder and CEO of startup Desktop Metal. Courtesy of North Bridge.

Even following its merger with Objet, Stratasys is largely known for its Fused Deposition Modeling (FDM) process, and even acquisitions such as MakerBot haven’t really gone outside that model. It could be, though, with the current leery attitude of investors, that the company is exploring options for branching out into other manufacturing processes.

Stratasys was recently part of a group of investors backing a new startup called Desktop Metal. Don’t bother Googling. At the time of writing, the company didn’t even have a website yet, and was still in the early phases of hiring employees. What Desktop Metal does have is $14 million in funding and the stated goal of producing a desktop metal AM system that can run in an office space with no muss or fuss.

Desktop Metal is led by CEO and co-founder Ric Fulop, who has been involved with a number of other companies, including MarkForged, developer of a 3D printer fueled by carbon fiber. Fulop has said he believes AM is still in its infancy, and that metal AM is one area lacking serious progress that would allow for a wider scale adoption.

With this investment, it certainly appears as though Stratasys is at least open to the idea of adding different processes to its portfolio, even if it isn’t keen on developing those processes in-house. Desktop Metal offers the company the potential option of acquiring a working desktop metal AM system later, assuming Fulop and company are able to deliver on the promise.

Below you’ll find a video about MatterFab, another startup that is in the process of developing metal 3D printers.

Source: Xconomy