09-30-2021: Velo3D debuted on the NYSE, a day after its SPAC merger with Jaws Spitfire Acquisition Corp

A good start to a bad ending

On September 30, 2021, Velo3D, an American company specializing in the production of innovative metal 3D printers, debuted on the NYSE through a merger with the special purpose acquisition company (SPAC) Jaws Spitfire Acquisition Corp. This type of market entry, known as a SPAC merger, allows a company to list its shares without a traditional initial public offering (IPO).

As a result of the merger, Velo3D's valuation reached $1.6 billion, and the company raised approximately $274 million through the transaction. These funds were intended for technology development, scaling production operations, and international expansion. In the first few days after the debut, the stock price hovered around $10 per share, which is typical for many SPAC mergers, as shares of such companies initially trade close to this baseline price.

Yes, even though only three years have passed since those moments, we might have simply forgotten that Velo3D and Shapeways debuted on the same exchange on the exact same day.

It was a very optimistic time for the AM industry – full of hope and bold plans for the future. Billion-dollar valuations, billion-dollar expectations. Five years earlier, consumer 3D printers were expected to be in every home; by the fall of 2021, they were supposed to start appearing in every factory, gradually replacing outdated manufacturing technologies.

None of that happened. Neither before nor after. Not in the way it was promised.

In this short anniversary post, I don't intend to repeat everything that was recently discussed in great detail. Shapeways died on July 3, 2024, and Velo3D is barely hanging on... It was recently delisted from the NYSE and is now drifting with a embarrassing valuation of $5 million on the OTCQX market. To survive, it sold its technology to its biggest client – SpaceX – for $8 million.

For Velo3D, the dream of power lasted just over a year – after that, it was just a downward spiral. Freefall.

Source: www.velo3d.com