Core Viewpoint - The bankruptcy of Desktop Metal, a leading player in the 3D printing industry, signals potential decline in the sector, reflecting not only the company's issues but also broader industry challenges [2][15]. Company Overview - Desktop Metal was founded in 2015 in Massachusetts, USA, by a team with strong technical backgrounds, including founders from A123Systems and several MIT professors [4][5]. - The company initially focused on developing metal binder jetting technology, which allowed for compact equipment and fast printing speeds, appealing to diverse environments [5][6]. Capital and Market Dynamics - Desktop Metal experienced a surge in capital investment, raising $438 million by 2020 and achieving a valuation of $2.5 billion [6]. - The company went public via a SPAC merger in December 2020, reaching a peak valuation of nearly $60 billion despite minimal revenue [6][8]. Aggressive Expansion and Challenges - Following its IPO, Desktop Metal engaged in aggressive acquisitions, spending $370 million on six acquisitions between 2022 and 2024 to expand its market presence [8][9]. - However, the integration of acquired technologies proved problematic, with only 32% of patents translating into production technologies, leading to operational inefficiencies [9][10]. Financial Struggles - The company's financial health deteriorated significantly, with cumulative losses exceeding $1 billion from 2021 to 2023, and a 217% increase in management expenses due to failed integrations [10][12]. - By 2024, Desktop Metal faced severe cash flow issues, reporting a free cash flow of -$48 million and only $110 million in cash reserves [10][12]. Bankruptcy and Industry Implications - In April 2024, Desktop Metal agreed to be acquired by Nano Dimension for $179.3 million, a fraction of its peak valuation [12][13]. - Following the acquisition, Desktop Metal filed for Chapter 11 bankruptcy in July 2025, highlighting the financial strain from previous management decisions [12][13]. - The situation serves as a cautionary tale for the 3D printing industry, emphasizing the need for effective commercialization of technology and prudent financial management [15].