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Sequoia Capital joins $60m round in US manufacturing firm Carbon
Carbon, a US-based additive manufacturing firm, has raised US$60 million in funding from existing investors including Sequoia Capital, Silver Lake, adidas, Baillie Gifford, Madrone, and Northgate.
The company, which develops hardware, materials, and software for large-scale 3D printing, said the funds will be used to expand production capacity.
Carbon was founded in 2013 and has launched several products targeting industries such as consumer goods, sports equipment, cycling, and dental health.
Its technology is used by brands including adidas for 3D-printed footwear, Riddell for football helmet padding, and various cycling and dental companies.
The firm reported rising production volumes, and plans to reach cash-flow positive operations.
Carbon claims its printers have been ranked the most reliable by the National Association of Dental Laboratories for six years, and that its products are used by top athletes and manufacturers worldwide.
The company did not disclose its current valuation.
🔗 Source: Carbon
🧠 Food for thought
Implications, context, and why it matters.
Carbon’s path to profitability hinges on unproven subscription economics
- Carbon rents its printers through subscriptions started in 2016 and offers Pay‑As‑You‑Print billing 12. Carbon reached cash‑flow positive only after 12 years and $692 million raised, which hints at thin hardware margins or heavy R&D spend 3.
- The company hit a $2.4 billion valuation in April 2019 during its Series E, and it has not shared a current figure 3. DeSimone is the cofounder and former CEO 1. He says about 80% of work goes to application development, with more application engineers than sales reps 1.
- The firm is moving from selling printers to delivering full solutions for set uses such as dental aligners, dentistry, and bicycle saddles 2. Bundles include hardware plus materials, software, and process guidance 2. The next three years will show if margins cover the subscription model’s complexity 2.
Equipment financing providers can capitalize on dental labs’ Carbon adoption
- Keystone Industries, a dental materials maker, reached 1 million printed dental parts 1. Carbon focuses on orthodontics and dentistry 2. Small and mid‑sized labs will want access yet may avoid long contracts that strain cash 12.
- Specialty lenders and lessors can offer leases or Buy Now, Pay Later plans common in 3D printing 4. The M2, M3, M3 Max and L1 each target different output levels 5. Financiers can tier offers to fit lab size and volume 5.
- Carbon leans on application engineering and keeps more application engineers than sales reps 1. That light sales motion opens room for financiers to market into regional dental lab networks 1.
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