Frank Herzog: Venture capital fund for the 3D printing industry

Munich The corona pandemic highlighted the possibilities of 3D printing in two ways: At the beginning of the crisis, ventilators and face shields were manufactured using the technology. When the supply chains were interrupted, companies produced urgently needed spare parts with the 3D printer.

“In many executive floors, people will now consider how to reduce dependencies,” says industry pioneer Frank Herzog. With the help of additive manufacturing, it is not only possible to react quickly in times of crisis. “3D printing will prevail and find its permanent place in the industry.”

Experts forecast double-digit growth rates for the industry. According to a study by Learnbonds, the 3D printing market could grow from a good 16 to 40.8 billion dollars by 2024. German companies such as Eos, Concept Laser and Trumpf play a leading role in the industry.

Herzog wants to ensure that they can maintain this good starting position. The founder of Concept Laser has set up a venture capital fund together with his wife Kerstin. He wants to invest 50 million euros in young start-ups in the scene.

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The investment focus should be on all areas of 3D printing, from machines and services to robotics, automation and applications with artificial intelligence. The first commitments have already been made. He and his wife have already provided half of the capital through the HZG Group, the rest should come from family offices and individual investors. A new development center and the start-up incubator Naddcon are also part of the initiative.

Frank Herzog

The founder of Concept Laser has set up a venture capital fund together with his wife Kerstin.

Copyright: Sebastian Buff

Investment companies, but also other start-ups can work here with the latest technology, and the Herzogs are there to help and advise. “We are returning to our entrepreneurial roots,” says Herzog.

Sale of the company to General Electric

The entrepreneur and his wife founded the market leader Concept Laser back in 2000. He sold his company to General Electric five years ago for a sum in the mid three-digit million range. Even during the corporate crisis, GE held on to the division – which is also important for its own aviation plants. In Prague, for example, the Americans are producing a turbo-propeller engine that consists of just twelve parts. With classic production processes it was 950.

But now 3D printing could also increasingly establish itself in other industries. The global shortage of parts has triggered a rethink in many companies. “Digital spare parts are becoming a major growth topic for the industry,” said Lutz Feldmann, European head of the 3D printing specialist Markforged.

General Electric can also make good use of these impulses. The US group had put together the additives division with major acquisitions such as the purchase of Herzogs Concept Laser and the Swedish company Arcam. Two years ago, GE opened a 40,000 square meter plant in Lichtenfels, Upper Franconia. However, last year the US group announced a job reduction at the location with reference to Corona.

Trumpf also has many years of experience in 3D printing. The German group presented its new generation of TruPrint3000 machines a few days ago. This can process all weldable materials, from steel to titanium to aluminum. A second laser doubles productivity.

In addition, the German printer manufacturer Eos, which once dueled with Concept Laser for world market leadership, continues to play a leading role. “Additive, decentralized manufacturing enables flexible, data-based on-demand production where it is needed,” said Eos boss Marie Lange to Handelsblatt. Pre-financing of products, minimum production quantities or overproduction could be avoided and storage and logistics costs could be reduced. There are also many start-ups that deal with the technology.

After the hype came the disillusionment

A few years ago there was a real hype around 3D printing – the industry prefers to speak of additive manufacturing in the industrial sector. Pizzas were printed as well as houses to show the possibilities of the new technology.

The usual period of disillusionment followed. “The systems have to become even more robust and reliable,” said Herzog on the occasion of the AMTC trade fair. Progress is being made here, thanks in part to the work of German mechanical engineers. In addition, the lack of standardization is holding back: “For example, every machine manufacturer has its own powder system.” Industry must work more closely together here.

Above all, Herzog believes, politicians must promote the technology more. In China, additive manufacturing is part of the five-year plan. In Germany, the foundations for the technology have been created. But the application must be financially supported, especially in medium-sized companies. “We need a massive wave of funding.”

In a position paper before the federal elections, the Berlin 3D Printing Association also called for the right course to be set now. “After successful testing, there are opportunities for the disruptive development of new and superior application solutions for the German and European economy.”

Many companies shied away from the high investments

The association called for more support for 3D printing research activities. “Small and medium-sized enterprises in particular need impetus to develop tailor-made business models.” Many companies still shied away from high investments. In addition, the association advocated including 3D printing content in curricula and study plans and installing 3D printers in schools.

Pioneer Herzog has long been on the way with the next generation to promote 3D printing. He plans to print chocolate in schools over the next few weeks. He has been offering digital training for children and adults in the region for a long time, and a master’s course has been launched.

With the new fund, according to information from the Handelsblatt, he has already invested, among other things, in the Rostock-based company AIM3D, which has developed a multi-material printer that is supposed to work significantly more cost-effectively than previous machines. “We can certainly help such companies to accelerate development,” says Herzog. In this way, he can provide business and technological support and establish contacts with potential customers and cooperation partners.

He has recently been able to make contacts on the soccer field: The bustling entrepreneur was elected President of FC Lichtenfels.

More: These are Germany’s 100 fastest growing medium-sized companies.

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