The consumer market for 3D printing isn't what it used to be. The stock for the two largest 3D printing companies, 3D Systems and Stratasys, have seen huge drops over the last two years. And while 3D Systems has given up on the consumer market altogether, MakerBot, which Stratasys acquired in 2013, is a shell of its former self.
"Professional 3D printing has had unabated demand, with Formlabs emerging as the leader in desktop 3D printing."
But Brad Feld, co-founder of Foundry Group, sees a lot more potential for 3D printers in the professional market, which is why his venture capital firm is leading the $35 million Series B round for Somerville-based Formlabs. It's also why Feld, a much sought-after VC who has also backed Fitbit and large number of other startups, is joining Formlabs' board.
Formlabs announced its Series B financing on Thursday, which also includes Autodesk as a new and strategic investor that will allow it to create new software integrations and work on joint marketing initiatives with the software giant.
“From the moment of its founding, Formlabs saw the opportunity in making professional desktop 3D printing accessible and was a key pioneer in the category,” Feld, who also co-founded startup accelerator Techstars, said in a statement. "While the excitement and hype around consumer 3D printing has waned, the professional 3D printing category has had unabated demand, with Formlabs emerging as the leader in desktop 3D printing."
Max Lobovsky, Formlabs' co-founder and CEO, told BostInno that he plans to use the funding to bring new products to market, grow worldwide and add about 100 employees to its current headcount of 190, mostly based in Somerville.
After it was founded in 2011, Formlabs has released three 3D printers: the Form 1, the Form 1+ and the Form 2, with the first having been supported through a nearly $3 million Kickstarter campaign. Lobovsky said Formlabs is now shipping 1,000 printers a month, with the startup now achieving 100 percent annual sales growth for three straight years.
Lobovsky declined to discuss revenue or how close Formlabs is to becoming profitable, but said strong sales has made the startup favorable in the eyes of venture capitalists, who have begun to put more value on a strong bottom line over growth.
"We’ve had that in our DNA from the beginning," Lobovsky said. "We like the traditional model of making something that people value and sell it. I think there has been some change in the VC market, but if anything, it’s worked to our favor."
One of the ways Formlabs stands out from other 3D printing companies, Lobovsky said, is that it has been completely focused on professional users from the beginning, which has played a big role in how it designs products and runs customer service. What makes Formlabs printers stand out are their ability to produce high-resolution parts with intricate details, allowing them to be used for a wide range of applications, from dentistry and jewelry to research and art.
