Transcript Document

FDM Innovation & Entrepreneurship
Scott Crump
BSME, Co-Founder & CEO Stratasys
Stratasys & UTEP Partnership
• 10 years of business & partnering
• UTEP has twelve Stratasys FDM Systems
• UTEP has been a Beta Site and they do joint
development in R&D including:
– research
– mechanical strength properties &
characteristics
– build parts for customers
FDM Innovation & Entrepreneurship
CO-FOUNDERS
Scott & Lisa Crump set out to automate the
gap between the CAD blueprint and the
final manufactured product ….
now called Rapid Prototyping
The “Start Up”
• Built “Toy Froggy” with 2 yr. old daughter - 1988
 Realized layered beads could build a part
with a glue gun
• Added glue gun to a 2D Pen Plotter = 3D
Plotter
For Proof of Concept
 In our garage
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Vision
• Offer Engineers a 3D Printer for desktop 3D
CAD:
 Easy to use - one “build button” from CAD
 Automatic build of prototype
 Use in the design office
 $12,000 Price
 Real production grade plastic parts
• We kept with the vision
3D Plotter - Vision
Operating 3D Plotter prototype
The “Start Up”
• “3D Plotter” for AutoCAD run on IBM PC
 Tested Proof of Feasibility & it worked
• We had spent $10,000 so far - the big question:
Do we take the risk of a start up
 Quit my job with good income - for no income
 Or just forget the idea
 Looked easy - but it wasn’t an easy decision

• Started up Stratasys on 2nd shift – working 1st shift
Lessons Learned for Engineers
• Follow your dreams
• Clear vision is more valuable than a detailed
plan & have faith in your vision
• Take as high of a risk as you can stomach
and control
Emerging History - FDM Technology
• I filed for a FDM Technology Patent
• It was granted in 1992
• FDM - Fused Deposition Modeling:
 Lower acquisition price vs. competition
 Production grade plastic parts
 Office friendly environment
Emerging History - Patented FDM Technology
Support Material
Modeling Material
FDM Filament Spools
Lessons Learned
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Get Patents to protect global proprietary position
Start ups are a lot about survival and persistence
The entrepreneur is persistent
Cash is KING - you’re in business as long as you
have cash
Lessons Learned
• Keep focused on what value you add to your customer
• Price your service and product to the market - not cost
• Work with a seasoned Mentor that has done it
• Try to have variable cost & low fixed cost
Funding - Sold equity as needed - to grow
• Lisa & I invested in 1989
• My family invested in 1990
• Talked with 74 Venture groups & we found one
• Battery Ventures (VC) invested $1.2M in 1990
• Lisa & I invested again 1992
Funding - Sold equity as needed - to grow
• Serious problem funding high growth!!
 We were growing at 125% per year
Unsuccessful getting $5M private offering
 Difficult decision - do IPO or shut the doors
• We contacted 23 IPO underwriters nationally
• Successful $7M IPO in 1994
East Coast Underwriter
We had Sales of about $3 million
Stratasys publicly traded on NASDAQ
Lessons Learned
• Stock options help employees focus & gain
• Don’t be afraid to sell equity - 100% of nothing is
nothing
• Don’t fund long term risk - with debt
• We thought we could grow Stratasys with $90,000,
it actually required $20M
- Hey not all plans work
FDM can build working assemblies
3D Printer – Stratasys First to Market
$25,000
IPO funded
3D Printer
development
Enormous Growth Potential
Global Engineering
Population
28.5 Million
Engineers
5 Million
MCAD
Users
Source: Stratasys, CADigest, engineeringtalk.com, Deskeng.com
3D Printer Opportunity
AF Systems Today
37,000
5 Million
CAD
Workstations
Worldwide
3D Printer Opportunity
>500k Systems
at the right price!
3D Printing Vision
SSYS
• Currently shipping 2,000 Units per year
• We have a plan for 5,000 per year
• My vision is 10,000 per year
3D Printing
SSYS
– The question is, how to do 10,000 per year?
– For this expansion, we need to:
1. Improve system quality & our culture
2. Growth of sales channel
Lessons Learned
• It’s really all about your team of employees
• Hire the right employees the first time
– If you don’t know how to hire, use a head hunter
• Don’t be cheap with employee salaries
• Measure and share critical business metrics
Traditional Technology “S” Curve
The 3D Printer fits a
Traditional Technology “S” Curve
Stratasys Sales Growth (in Millions)
$80
$60
$40
$20
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
$0
Industry Overview
1600
1400
RP Products & Services Revenue
($ in millions,worldwide)
$1,190
1200
$926
1000
$705
800
600
400
200
0
1993
1995
1997
Source: Wohlers Report, 2004
1999
2001
2003
2005E
Industry Overview
1600
RP Products & Services Revenue
($ in millions,worldwide)
1400
$100
$1,190
1200
$80
$926
1000
$60
800
$705
600
$40
400
$20
200
$0 0
2005E
20
05
2003
20
03
2001
20
01
1999
19
99
19
97
19
95
19
93
1993
1995
1997
Source: Wohlers Report, 2004
Cross the Chasm
with a Whole Product
Whole Product Criteria
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Correct price
Correct ongoing operating cost
Product reliability
Ease of use
Correct sales channel
Product speed
Part quality
Correct market application
Competitive positioning
Whole Product Criteria - FDM-3000
Scale: 10 = High to 0 = Low
Correct street price for current application
Proper user operating cost
Acceptable product reliability
Acceptable product manufacturibility
Acceptable product servicability
Acceptable ease of use
Efficient sales channel
Acceptable product thru put
Acceptable RP part quality
Acceptable modeling material
Correct application
Correct competitive position
Acceptable manufacturing capacity
Acceptable AE & Machine Capacity
Proper Launch Budget
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HP Agreement
Stratasys and HP Agreement:
Taking 3D Printing Mainstream
HP Agreement
• HP will sell our 3D printers as HP brand.
• Stratasys will develop and manufacture for HP based on
proprietary Stratasys FDM technology.
• Part of $24 billion HP’s Graphic Solutions Business
• HP’s goal is worldwide distribution of 3D printers.
3D Printing Opportunity
+
Right Solution
+
Right Channel
Millions of Potential Users
FDM Medical
Application Success Story
For Medical Tools, Functional Prototypes Improve Design
– Ratchet for Spinal surgical procedures
“At Medtronic – Sofamor Danek, cutting edge medical
technology takes new shape, thanks in part to FDM
prototyping technology, forward-looking companies seek
forward-looking partners.”
says RP designer, David Freeman.
FDM Future
So how will FDM expand in the future?
Futuristic FDM
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Architectural models
FDM for the home hobbyist
Metal FDM parts
Nano and composite build materials
FDM fabricated semi-conductor chips
Direct Digital Manufacturing
• Fully automatic touch-less labor products
• Production of end use parts
• Hydro forming sheet metal fixtures
Sheet Metal Hydro Forming
FDM Hydro-form Example
• Male mold with intensifier
• FDM trim tools for sheet metal
blanks or formed sheet part
• Coordinated structure removal
and installation tooling
3D Production Systems
Direct Digital Manufacturing
200mc™
360mc™
End Use Parts
(EUP)
400mc™
900mc™
$100,000 tool savings using
DDM process for one part
Questions