SPAC Wars: Desktop Metal Vs. Velo3D, Battle For 3D Printing

The hosts of Benzinga’s “SPACs Attack” held several SPAC Wars battles featuring companies that went public or are going public via SPAC that compete in similar industries.

A recent battle was Desktop Metal Inc DM versus Velo3D, a company merging with Jaws Spitfire Acquisition Corporation SPFR. Both companies compete in the high-growth 3D printing market.

Desktop Metal: 3D printing is a growth area that could help both companies, according to co-host Mitch Hoch, with additive manufacturing growing 11x over the next decade.

“They’re taking what used to be the strongest one and really kicking it out of the water,” Hoch said.

The company is taking on legacy players in the industry and having success.

As Desktop Metal increases its operations over time, its gross margins will improve, Hoch pointed out.

“Technology keeps getting cheaper and cheaper and cheaper.”

Hoch mentioned the big partnerships Desktop Metal has and said, “I think you’re going to see those partnerships take off.”

Related Link: SPAC Wars: DraftKings Vs. Rush Street Interactive

Velo3D: A partnership with SpaceX could be a key for growth for Velo3D, co-host Chris Katje argued.

“Not a lot of companies have this exposure to SpaceX,” Katje said.

Velo3D worked with SpaceX to print items the company had trouble with before and has manufactured items previously thought to be impossible.

Katje highlighted the head of additive manufacturing at SpaceX saying Velo3D was five years ahead of the competition.

“That’s strong support here for Velo3D.”

The customer base for Velo3D is strong and covers sectors like space, aerospace, defense and automotive.

Velo3D is projecting compounded annual growth of 92% for revenue from 2020 to 2026. The company will also provide parts and repair for customers and gain recurring revenue under this model.

“We love recurring revenue,” said Katje.

The Winner: Viewers of “SPACs Attack” picked Velo3D with the majority of votes.

“I want the win but didn’t expect a landslide here, these are two great companies,” Katje said.

The full episode featuring this battle and several others can be seen here.

Disclosure: The author is long shares SPFR.