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Company News: Good News! West Fountain Parallel Fund's Portfolio Companies, Desktop Metal and Bestechnic's Upcoming IPOs

2020.08.29

Image from Desktop Metal

This week, West Fountain China Parallel Fund’s portfolio company Bestechnic successfully held a meeting on the China Science and Technology Innovation Board. At the same time, West Fountain’s portfolio company Desktop Metal also announced that it will be listed on the New York Stock Exchange, and the two companies will enter the Chinese and American capital markets in the near future. In just three years, the companies invested by West Fountain Parallel Fund have successfully emerged in the capital markets of the United States and China.

On August 26, Desktop Metal, the world's top metal 3D printer manufacturer invested by the Parallel Fund, officially announced that it would go public on the New York Stock Exchange through SPAC. The company is expected to complete the NYSE listing in the fourth quarter of 2020. The stock code is "DM". After the listing, it will raise approximately US$575 million (approximately RMB 4 billion) will be valued at approximately US$2.5 billion or 17 billion yuan. Desktop Metal will use this financing to continue to increase investment in R&D and sales, and fully roll out its 3D printing solutions in various industries. According to the market value ranking of global 3D printing companies, the market value of DM will exceed the current market value of its competitor Materialise (valued at US$1.97 billion) world's largest current largest 3D printing company by market value.

Strong technological advantages lead "Additive Manufacturing 2.0": Desktop Metal was established in 2015 by experts in the field of advanced manufacturing and robotics, with the goal of making 3D printing an essential tool for engineers and manufacturers around the world. Desktop Metal currently serves markets in 60 countries, and its products are used in industries such as automotive, aerospace, consumer products, industrial automation, and medical equipment. DM's existing products include Fiber, Studio System, Shop System, and Production System, which can cover the 3D printing needs of composite materials (carbon fiber) and metal materials.

The technical advantages of Desktop Metal's 3D printing system are mainly reflected in speed, material flexibility, and microstructure flexibility. Speed is the most important factor for cost-effectiveness in mass production. DM's 3D printing system uses a "single pass jet" method to achieve a construction speed of 500 cubic feet per hour, which is 100 times faster than the current traditional metal 3D printing technology. Material flexibility is another advantage of DM. Its office-compatible DM Studio 3D printing system can use cassettes for rapid material conversion within 60 seconds, which is critical for the application of 3D printing technology in small mechanical workshops. DM's 3D printing system can also select the microstructure of materials through the control software, which provides more possibilities for controlling production and R&D.

Desktop Metal's independent research predicted the second wave of 3D printing innovation and called it "Additive Manufacturing 2.0". Additive Manufacturing 2.0 can set off a wave of a new generation of additive manufacturing technologies that can release output, reduce repeatability, and reduce the cost of competitive parts. These solutions are mainly reflected in the innovation of printers, materials, and software, making additive manufacturing more competitive than traditional processes.

On August 28, the Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Committee held the 67th deliberation meeting in 2020. According to the review results, Bestechnic had a successful IPO and will officially land on the Science and Technology Innovation Board in the near future.
Bestechnic is an internationally leading intelligent audio SoC chip design company. Its main business is the R&D, design, and sales of intelligent audio SoC chips, providing customers with edge intelligent master control platform chips with voice interaction capabilities in AIoT scenarios. The Parallel Fund’s investment in Bestechnic reflects the fund’s emphasis on the smart chip and semiconductor industries, as well as its recognition of the Bestechnic team, technology, and development prospects. With a deep understanding of the chip and semiconductor industries, the Parallel Fund aims to use capital to drive the chip industry, achieve industrial synergy, promote the rapid and sustainable development of invested companies, and promote the optimization and optimization of smart chips. .

Since Apple launched AirPods, it has detonated the market and the industry's enthusiasm for TWS earphones. In the past year, demand is estimated to have increased by 125% year-on-year reaching about 100 million pairs. Currently, in addition to Apple, established Chinese and foreign manufacturers such as Huawei, Xiaomi, Philip, and Lenovo have all adopted BES cooperation products. Bestechnic is the first in the industry to use 40nm and 28nm processes for the development of Bluetooth audio chips, and a new generation of products using 22nm processes is currently under development.
Bestechnic is committed to becoming the most innovative chip design company in the world. With forward-looking R&D and patent layout, continuous technology accumulation, rapid product iteration, flexible customer service, and continuous introduction of leading products and solutions. It has become The leader of AIoT master control platform chips.