Velo3D's fully integrated metal AM solution enables performance-optimized parts in aerospace, defense, energy, and automotive industries.
Looking at Velo3D from the outside, someone might assume the company has hit a wall, especially given the market cap. How do you see the next chapter unfolding?
It is a fair observation, but the story of Velo3D is really a mix of what is happened internally and what has been going on in the larger additive manufacturing industry, particularly in the metal space. Over the past three or four years, we have seen dramatic growth—doubling and tripling revenue year after year—largely driven by the space sector. Our technology was a perfect match for companies like SpaceX, and their demand accelerated our innovation cycle. But honestly, we grew too fast, and that speed exposed issues, especially with the XE platform. We were moving quickly to meet demand, and some of the reliability challenges caught up with us just as capital markets tightened and the broader market started to temper its expectations for additive manufacturing.
Toward the end of 2023, we began addressing these challenges head-on. We focused heavily on product reliability, adjusted our R&D efforts, and right-sized the business to align with the realities of our market. By early 2024, the results started to show: customers were coming back, repeat orders were driving a $20 million backlog, and over half of that came from existing customers. We’re now laser-focused on being not just a technology provider but a solutions provider—helping our customers use our technology to solve real, complex problems efficiently and effectively.
Does your SpaceX deal represent a turning point for Velo3D?
The SpaceX licensing deal was a critical step in the right direction. It was not just a big win for the company; it showed how we could align our unique capabilities with what customers truly need. SpaceX’s requirements fit perfectly with what we offer: unmatched scalability and the ability to deliver high-volume, high-quality parts reliably.
More broadly, the deal signaled a shift in how we operate. Historically, we were a capital equipment manufacturer—selling printers and letting customers figure out the rest. Now, we are taking on more of the workload, helping customers go from a CAD drawing to production-ready solutions. The SpaceX deal is a great example of how we can tailor our approach to meet specific needs, and it’s a blueprint for how we’ll work with other industries moving forward.
Shifting to a solutions provider model makes sense, but what do your customers need most? Why do they rely on external expertise now?
It really comes down to three things: geometry, scalability, and speed. First, our technology enables geometries that no one else can match. This is critical for industries like aerospace and hypersonics, where traditional methods just can’t deliver. Second, customers want scalability with consistent quality. Our platform allows them to take a design and reliably produce identical parts across machines, whether internally or through contract manufacturers. For example, SpaceX can send a file to one of their partners and know the part will meet spec without requalification. The third—and this has become increasingly important—is speed. Companies want to go from prototype to full production as quickly as possible. Because we understand the technology, the applications, and the challenges better than anyone else, we can help them get there faster. That is a big shift from just selling tools to solving problems, and it’s where we’re focusing our efforts.
There’s long been excitement about 3D printing, and now I hear talk of manufacturing in space. Is that realistic, and how does it connect to Velo3D’s work?
It is not just realistic; it is becoming practical. One of the core benefits of additive manufacturing is reducing complexity. With traditional methods, you need casting, machining, assembly—it’s a long chain. Additive lets you create a single part directly, eliminating those extra steps. In space, where setting up complex manufacturing processes isn’t feasible, that’s a game-changer.
For Velo3D, the value lies in enabling parts that can’t be made any other way. Take rocket engines: even a small efficiency gain can translate to significant cost savings or increased payload capacity. Additive manufacturing also excels in material efficiency, which is crucial when you’re talking about the cost of transporting materials into space.
Instead of machining away 80% of your material, additive only uses what’s needed, and leftover powder can be reused. It is this kind of practicality that makes additive manufacturing so compelling for space applications.
In the context of everything you’ve been through this past year, what’s keeping you up at night?
Honestly, we’re at a critical turning point. As we look to 2025, we are preparing for significant growth, especially in aerospace and defense. What worries me is how we handle that growth responsibly. In the past, we scaled too quickly, and it caught up with us. This time, it is about building the right foundation: lean manufacturing, robust quality systems, and a sustainable cost structure. The days of growing at all costs are behind us. We have to ensure that as we expand, we remain profitable and efficient. It’s not just about hitting growth numbers; it is about doing it in a way that positions us for long-term success. That is what keeps me focused.
Where do you see the future of additive manufacturing, especially in metals?
Disruption is always messy, and additive manufacturing is no exception. Early on, people saw it as the solution to everything, but the reality is that it is hard—it requires new skill sets, processes, and ways of thinking. We’re now at the industrialization phase, where the focus is on reproducibility, scalability, and reliability. It’s like the evolution of 2D printing: at first, every printer was different. Now, you send a PDF, and it works perfectly every time. That’s where additive manufacturing is heading. For metals, the potential is transformative. It is going to redefine supply chains and enable localized production, which is crucial for reshoring manufacturing in the U.S. What drew me to Velo3D is how far ahead we are in this journey. Our platform already delivers the kind of reproducibility and scalability that’s essential for industrialization. That is why I believe we are positioned to lead the next wave of growth in this industry.
