Crump utep feb 2010 final
- 1. FDM Innovation & Entrepreneurship Scott Crump BSME, Co-Founder & CEO Stratasys
- 2. 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
- 3. FDM Innovation & Entrepreneurship
- 4. Scott & Lisa Crump set out to automate the gap between the CAD blueprint and the final manufactured product …. now called Rapid Prototyping CO-FOUNDERS
- 5. 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
- 6. 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
- 7. 3D Plotter - Vision
- 8. Operating 3D Plotter prototype
- 9. 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
- 10. • 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 Lessons Learned for Engineers
- 11. • 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 - FDM Technology
- 12. Emerging History - Patented FDM Technology Support Material Modeling Material
- 14. • 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
- 15. • 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 Lessons Learned
- 16. 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
- 17. 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
- 18. • 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 Lessons Learned
- 19. FDM can build working assemblies
- 20. $25,000 3D Printer – Stratasys First to Market IPO funded 3D Printer development
- 21. Enormous Growth Potential Global Engineering Population 28.5 Million Engineers 5 Million MCAD Users Source: Stratasys, CADigest, engineeringtalk.com, Deskeng.com
- 22. AF Systems Today 37,000 5 Million CAD Workstations Worldwide 3D Printer Opportunity >500k Systems at the right price! 3D Printer Opportunity
- 23. 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 Vision
- 24. – 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 SSYS 3D Printing
- 25. • 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 Lessons Learned
- 26. The 3D Printer fits a Traditional Technology “S” Curve Traditional Technology “S” Curve
- 27. Stratasys Sales Growth (in Millions) $0 $20 $40 $60 $80 1990 1992 1994 1996 1998 2000 2002 2004
- 28. Industry Overview RP Products & Services Revenue ($ in millions,worldwide) $1,190 $926 $705 0 200 400 600 800 1000 1200 1400 1600 1993 1995 1997 1999 2001 2003 2005E Source: Wohlers Report, 2004
- 29. Industry Overview RP Products & Services Revenue ($ in millions,worldwide) $1,190 $926 $705 0 200 400 600 800 1000 1200 1400 1600 1993 1995 1997 1999 2001 2003 2005E Source: Wohlers Report, 2004 $0 $20 $40 $60 $80 $100 1993 1995 1997 1999 2001 2003 2005
- 30. Cross the Chasm with a Whole Product
- 32. Whole Product Criteria • Correct price • Correct ongoing operating cost • Product reliability • Ease of use • Correct sales channel • Product speed • Part quality • Correct market application • Competitive positioning
- 33. Correct street price for current application 8 Proper user operating cost 8 Acceptable product reliability 9 Acceptable product manufacturibility 8 Acceptable product servicability 8 Acceptable ease of use 9 Efficient sales channel 8 Acceptable product thru put 6 Acceptable RP part quality 8 Acceptable modeling material 10 Correct application 9 Correct competitive position 9 Acceptable manufacturing capacity 9 Acceptable AE & Machine Capacity 7 Proper Launch Budget 7 Whole Product Criteria - FDM-3000 Scale: 10 = High to 0 = Low
- 34. HP Agreement Stratasys and HP Agreement: Taking 3D Printing Mainstream
- 35. 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.
- 36. + Right Solution Right Channel Millions of Potential Users 3D Printing Opportunity +
- 37. FDM Medical
- 38. 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.
- 39. So how will FDM expand in the future? FDM Future
- 40. Futuristic FDM • Architectural models • FDM for the home hobbyist • Metal FDM parts • Nano and composite build materials • FDM fabricated semi-conductor chips
- 41. Direct Digital Manufacturing • Fully automatic touch-less labor products • Production of end use parts • Hydro forming sheet metal fixtures
- 42. 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
- 43. 3D Production Systems 200mc™ 360mc™ 400mc™ 900mc™ Direct Digital Manufacturing End Use Parts (EUP) $100,000 tool savings using DDM process for one part
- 44. Questions
Editor's Notes
- #2: This year we continue to be focused on increasing shareholder value thru profit, by growing expenses at a slower rate than our sales growth. The Management team and our Board are committed to this and the Stratasys employees are committed to this.
- #6: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #7: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #10: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #14: One of the most exciting parts of our business continues to be the Modeling Materials, the razor blade part of our business. This not only provides a competitive advantage, but also provide us with a dependable recurring revenue stream. We also have a strong recurring revenue stream in system maintenance contracts.
- #21: Our new Prodigy Office Modeler has been very well received in the market worldwide.
- #23: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #29: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #30: Let’s take a look back at last year, We’ll present a Financial summary of last year, Offer an update of the RP industry, look at the year 2001 And share our vision with you
- #45: This year we continue to be focused on increasing shareholder value thru profit, by growing expenses at a slower rate than our sales growth. The Management team and our Board are committed to this and the Stratasys employees are committed to this.