On March 24, 2021, unsupported metal 3D printer manufacturer VELO3D confirmed that it has merged with JAWS Spitfire Acquisition Corporation, a blank cheque company, to achieve a backdoor listing by way of SPAC. The transaction is expected to be completed in the second half of 2021. After the merger, the stock symbol on the New York Stock Exchange (NYSE) will be "VLD" and the value will be $1.6 billion. VELO3D will receive approximately US$500 million in funding. In 2020, its revenue scale has reached 20 million US dollars.
The print size of the unsupported metal 3D printer Sapphire XC is φ600mm x 550mm, which has been included in the global 3D printing product library
After listing, VELO3D's valuation of US$1.6 billion will enter the top 10 listed 3D printing companies in the world and become one of the fastest growing 3D printing companies in the world.
Benny Buller, founder and CEO of VELO3D, said: "VELO3D works with the most innovative companies in the world to lead the future of space travel, transportation and energy. "I am proud of these visionary partners, Purchase VELO3D's metal printer to manufacture parts of products that were impossible to manufacture before. By merging with JAWS Spitfire, we hope to promote the application of VELO3D technology and provide solutions to more customers around the world. "
The great potential of VELO3D
VELO's unsupported metal 3D printing technology can produce high-value metal parts, which is their core value. With high-volume Sapphire XC 3D printers scheduled to ship in the fourth quarter of 2021, they estimate that its total potential market will exceed $100 billion.
VELO expects to raise US$500 million, of which US$345 million will come from JAWS Spitfire’s trust cash income, and US$155 million will come from a private placement at a price of US$10 per share. The private placement will be led by strategic and institutional investors such as Baron Capital Group and Hedosophia. VELO said the funds will be used for technology development, sales, marketing and customer support.
"Benny and the VELO3D team have made technological innovation the core of the business model. We are very happy to work with them. They bring technology to a wider range of innovative customers around the world," said Barry Sternlicht, chairman of JAWS Spitfire. "Since commercialization, VELO3D attracted a group of top customers and demonstrated a welding-free, cost-competitive product that could not be achieved before."
VELO unsupported metal 3D printing technology
Velo3D has developed a laser powder bed fusion (PBF) technology that does not require support structures for 3D printing metal parts. This is achieved through a combination of simulation-based print preparation software, highly controlled print room atmosphere and closed-loop control.
The new SapphireXC system, Antarctic Bear is expected to have a considerable impact on the 3D printing industry. Velo3D has made great progress through rapid deployment worldwide. High productivity coupled with fewer support structures means that Velo3D's technology is very attractive for parts in some special areas. So far, the company has decided to focus on the aerospace sector and will further recommend it in the oil and gas industry.
Through analysis and monitoring, Velo3D has a molten pool and process control capabilities that far exceed those of other metal 3D printing manufacturers. As a Silicon Valley start-up, Velo3D believes that the best way to improve manufacturing is through better software and optimization.
Judging from the prepaid order for the new machine, the client company is willing to spend a lot of money to purchase and use this new technology. Velo3D has become a mainstream manufacturer of PBF (Powder Bed Metal 3D Printing).
In addition, the materials available for the new equipment are: F357 aluminum, titanium alloy, Inconel 718 and Hastelloy X. Inconel 718 is an aerospace material, especially suitable for gas turbine components. At the same time, Hastelloy X, like Inconel 718, is also a nickel-based super alloy used for oil and gas processing parts.
VELO3D claims that the company's full-stack 3D metal printing technology can produce mission-critical components for space rockets, jet engines, fuel delivery systems, and energy production, with faster performance and lower cost than traditional manufacturing methods. The VELO3D flagship sapphire metal printer does not require any geometric support below 45°, allowing engineers to achieve a design with a drape as low as 0° (horizontal) and a large inner diameter without support. With these technologies, customers can create complex metal designs that break through the limitations of traditional AM technology.
About the listing of Velo3D and SPAC
Velo3D was founded in 2015 and is headquartered in Silicon Valley. It entered commercial operations in 2018. Its customers include SpaceX, Honeywell, Boom Supersonic, Chromalloy and Lam Research. Velo3D, which is not yet profitable, has previously raised $138 million from investors such as venture capital firms Bessemer Venture Partners and Khosla Ventures.
VELO3D's 3D metal printing technology integrates software, hardware, and process control innovation end-to-end, providing unparalleled quality control for mass production and enhancing part performance. VELO3D provides Flow™ print preparation software, Sapphire® laser powder bed AM system and Assure™ quality assurance software to accelerate product innovation, respond more responsively to market demands and reduce costs. The company is the industry leader in launching SupportFree metal 3D printing technology, which can be used to create geometric shapes that were impossible before. VELO3D is located in Silicon Valley and is a privately funded company. VELO 3D has been selected by Fast Company as one of the world's most innovative companies in 2021.
Jaws Spitfire Acquisition Corp was founded by Starwood Capital Group Chairman Barry Sternlicht in 2020, and raised $300 million in an initial public offering in December.
SPAC (Special Purpose Acquisition Company) is an innovative financing method for overseas backdoor listings. Different from buying shell listings, SPAC builds the shell itself. That is to say, a special purpose company is first established in the United States. This company has only cash, no industries and assets. This company will invest in and acquire target companies that want to go public. The target company will quickly realize the purpose of listing and financing through mergers and acquisitions with the listed SPAC.