09-29-2024: Shapeways completed its merger with Galileo Acquisition Corp. and made its debut on the NYSE

No one could have predicted that this would mark the beginning of its downfall...

On September 29, 2021, Shapeways—one of the leading companies offering 3D printing services—finalized its merger with SPAC company Galileo Acquisition Corp., allowing it to debut on the NYSE. The listing occurred on September 30, and Shapeways raised $103 million, which was intended for growth, market expansion, and further development of its offerings. Today, we know that these ambitious plans were short-lived—the company unexpectedly filed for bankruptcy on July 3, 2024.

At the time, Shapeways was seen as one of the fastest-growing companies in the 3D printing industry. Its CEO, Greg Kress, emphasized that the capital obtained from this transaction would accelerate the rollout of its SaaS (Software as a Service) offering and expand Shapeways’ reach to larger corporate clients, including Fortune 1000 companies. The company’s strategy focused on supporting industrial applications of 3D printing while still maintaining service for smaller customers.

Shapeways proudly reported solid financial results. In Q2 2021, the company saw a 26% increase in revenue, from $7.0 million in 2020 to $8.8 million in the same period in 2021. Additionally, gross margin grew by 39%, suggesting a strong financial position. Kress noted that these results were the outcome of years of investments in production optimization, software development, and operational efficiency.

Unfortunately, despite initial optimism, Shapeways' situation drastically deteriorated over the next two years. Following its promising stock market debut in 2021, the company struggled to maintain stable growth. Management made poor decisions regarding capital allocation and overemphasized acquiring larger clients, which led to the neglect of other segments of the business.

Shapeways is not the only 3D printing company that faced difficulties after going public. Other companies that went public via SPAC in 2021, such as Fathom, Fast Radius, Velo3D, Markforged, and Desktop Metal (which debuted in December 2020), have also experienced significant challenges and massive declines in their initial valuations. Fast Radius even declared bankruptcy, with its remnants acquired by SyBridge Technologies.

In hindsight, it is evident that SPAC mergers are not particularly "3D printing friendly"…

Source: www.3dprint.com