3D-printed supercar startup Divergent Technologies has announced that it has successfully closed two new funding deals, for a total of up to $80 million. This follows the Southern California-based company’s $160 million Series C investment round, announced in April of this year.
Funding comes from Horizon Technology Finance Corporation and Bridge Bank, which is a division of Western Alliance Bank. Horizon, along with its financial advisor, Horizon Technology Finance Management LLC, together loaned Divergent an initial sum of $20 million. The terms of Horizon’s agreement with Divergent stipulate that the latter may receive up to $40 million in additional loans, subject to it meeting specific performance milestones. Bridge Bank, through its Technology Banking Group division, will provide Divergent with a $20 million revolving line of credit.
In an article in which he interviewed Czinger in March, 3DPrint.com Editor-in-Chief Michael Molitch-Hou wrote – of DAPS, in particular – “…Divergent creates a microcosm of digital adoption. additives by the automotive world-wide market.” In that sense, now is an appropriate time to increase Divergent’s investment and funding.Additive manufacturing (AM) in the automotive sector seems to be finally hitting its stride, and this is further evidence of that trajectory.
Additionally, in a fiscal environment where credit lines generally appear to be tightening, we can take Divergent’s announcement as a sign of where the financial community sees realistic potential for return on investment. This is particularly exciting, given the complexity of the DAPS system. Built around a suite of six 12-laser metal 3D printers from SLM Solutions, the system’s signature is total end-to-end automation.
Thus, this signals that financial confidence is demonstrated not only in the AM sector, but, more broadly, in the technology’s ability to deliver fully automated production lines. This has significance far beyond its implications for a business, as this is precisely what AM will need to show it can achieve, so that the industry can evolve to the point where it is able to handle the mass production.
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