I’ve been thinking about the news of BCN3D’s bankruptcy.
The Barcelona-based company is one of the older operations producing 3D printers. I first saw them years ago with their initial desktop FFF devices. Since then, they have progressively advanced their technology and eventually produced professional and industrial-grade 3D printers.
Along the way, they invented a new resin 3D print process called “VLM”, which they almost immediately spun off into a new venture, Supernova. Supernova was created as a completely separate business because of the radically different products involved. The two companies were left to travel their own trajectories, independent from each other.
Then, late last week, there was a report of financial difficulties for the company in the Spanish publication Cronica, as well as a report in the 3D Printing Journal. No press releases or other official information seem to have been published by the company on this development.
The reports say that BCN3D has filed for bankruptcy in a Spanish court. The Cronica report suggests that although they have raised €17M (US$19.3M) in investment and subsidies, they now find themselves with €10M assets and €7M in liabilities. We do not know the dilution ratio in ownership, as the firm is privately held.
Normally, bankruptcies occur when liabilities exceed assets, so there must be something more going on here. Cronica writes (translated):
”Continuous Losses: BCN3D’s printers enjoy prestige in the market, but growth forecasts have not been met, and sales remain stagnant at around 5 million euros. Results have not been optimal either.”
It sounds to me as if the investors had expected huge growth, but don’t see a path where that can happen in the future. The company’s sales apparently have stalled, and that’s never a good sign for a company that accepted investment with the expectation of growth.
However, it’s not surprising: there has been incredibly heavy competition from Asian manufacturers, which have developed very powerful equipment available at low prices. While BCN3D’s gear may have offered advantages in some aspects, many buyers might acquire low-cost equipment instead because they are “good enough” for their applications.
There are rumours of an acquisition, according to the 3D Printing Journal:
“In BCN3D’s case, the fact that the filing was accompanied by an acquisition offer for its production unit suggests that there may be a chance to preserve part of its operations. However, the key question will be whether the potential new investor can provide sufficient funding and whether creditors accept the proposed terms.”
That provides some positivity for the future of BCN3D, but also there are no guarantees. A company like BCN3D fails because of reasons. If those reasons are not removed or reduced by the acquiring company, then the same result is likely: bankruptcy and shutdown.
If the issue is about the products and pricing, then it’s difficult to see what an acquirer could achieve. If the issue is with marketing, reseller networks or input costs, then perhaps a buyer with advantages in those areas could offer some positive change.
We’ll have to wait and see what happens.
Via Cronica and 3D Printing Journal
