As Shapeways (Nasdaq: SHPW) headed towards chapter, there have been pink flags for observers. Along with the dropping inventory value, the corporate’s common monetary experiences confirmed quite a few indicators of a monetary collapse. In line with the corporate’s chapter submitting, Shapeways was on the lookout for potential consumers. Nevertheless, one supply, MyMiniFactory Co-CEO Alexander Ziff, claims that Shapeways administration basically laughed off Ziff’s bid to accumulate the agency.
Monetary Inconsistencies and Missed Alternatives
MyMiniFactory, a well-liked 3D printables web site, significantly for tabletop players and different hobbyists, has a great deal of overlap with customers of Shapeways’ on-line 3D printing market. Whereas Shapeways operated industrial tools to supply its items, MyMiniFactory subsidiary 3DC depends on decrease value 3D printers to take action. Although they handle a number of the similar market in several methods, there was sufficient synergy for Ziff and his agency to make a bid for the pioneering service bureau.
In an interview with 3DPrint.com, Ziff famous that MyMiniFactory recognized potential monetary points at Shapeways over a yr in the past. Noticing that Shapeways had extra cash than its valuation, his firm noticed a chance.
“We may inform a yr in the past that there was a difficulty with Shapeways. The share value of money within the financial institution didn’t make sense. We thought that it was a chance for us to succeed in out to try to purchase the enterprise,” Ziff defined.
To buy the Shapeways URL and market, MyMiniFactory provided the corporate roughly $5 million in money and shares. Nevertheless, the workforce’s preliminary supply was dismissed by Shapeways’ CEO Greg Kress. Ziff described the response: “We put a proposal in, Greg laughed at us—simply utterly seemed down at us as if we had been some small, irrelevant firm from England.”
Shapeways CEO Greg Kress in the course of the firm’s public itemizing on the NYSE. Picture courtesy of Shapeways.
As MyMiniFactory gained entry to Shapeways’ knowledge room, Ziff’s workforce uncovered a number of inconsistencies, in keeping with the manager. “We requested easy questions like, ‘why do your workers on two totally different sheets not match up? Why does your equipment not match up? It simply appeared fishier as we received alongside,” Ziff mentioned. These discrepancies raised suspicions about Shapeways’ monetary well being and administration practices.
The MyMiniFactory Co-CEO additionally instructed that the corporate’s technical operations had been questionable. Fairly than producing the products most related to Shapeways’ market, Ziff encountered extra grownup items.
“We sort of did get a tour and all we may see was intercourse toys being made, actually,” Ziff mentioned. “We received instructed by Greg that jewellery, miniatures, and trains, all the massive issues had been what Shapeways was doing. We didn’t see any of that after we had a chat. It was—I don’t know easy methods to put it—it’s unhappy as a result of Shapeways has been right here since 3D printing was extra for the creators and that’s what their ambition was.”
Desktop Steel printer. Picture courtesy of Desktop Steel.
In an effort to handle mounting monetary pressures, Shapeways introduced a big on-line public sale of Desktop Steel’s {hardware} valued at $5 million this April. The public sale, carried out by Heritage International Companions (HGP) on February 26-27, 2024, adopted a earlier $4 million public sale held in October 2023. Key objects within the public sale included Desktop Steel P1 Manufacturing System 3D printers, Store System binder jet 3D printers, BMD 3D printers, and varied supporting {hardware}, highlighting Shapeways’ try and liquidate non-essential property to enhance its monetary state of affairs.
Ziff expressed disappointment in Shapeways’ monetary choices, significantly their funding in tools that went unused. “They spent $30 million on Desktop Steel machines that by no means received touched after which they had been promoting them for nothing. Might you think about what they might have performed with that $30 million or what we may do with $1 million? It’s loopy,” Ziff remarked.
Trying Ahead
As Shapeways navigates its chapter, Ziff sees a chance for MyMiniFactory to step in and help the creator neighborhood that Shapeways as soon as served. Regardless of the challenges and the best way MyMiniFactory was handled, Ziff stays optimistic in regards to the future and dedicated to the corporate’s mission. “We simply needed the area title, we simply needed {the marketplace}… We didn’t want your amenities. After all, SLS is attention-grabbing for us. That’s the place Shapeways has performed properly,” he concluded.
Ziff emphasised MyMiniFactory’s dedication to empowering creators, contrasting it with Shapeways’ method. “The purpose is we’re right here to help the creators. We had been put down by Shapeways. We at all times mentioned in our message to them that we consider we’re right here as a steerage to assist creators. We wish to help the creator economic system,” he mentioned.
3DPrint.com reached out to Shapeways administration relating to the story and can replace the article per a response.
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