Desktop Metal: From MIT Unicorn to $7 Million Liquidation

Desktop Metal, Inc., described as the fastest-growing "unicorn" in United States history after reaching a $1 billion valuation 21 months from founding, entered chapter 11 liquidation on July 28, 2025—117 days after Nano Dimension completed a court-ordered $179.3 million acquisition. The Burlington, Massachusetts-based 3D printing company—founded in 2015 by entrepreneur Ric Fulop and four MIT professors with backing from Google Ventures, BMW, and Ford Motor Company—never turned a profit and raised $580 million through a 2020 SPAC transaction at a $2.5 billion valuation. Desktop Metal entered bankruptcy with over $138 million in debt including $29 million owed to lawyers who obtained a Delaware Court of Chancery order requiring Nano Dimension to complete the merger, according to the Cash Collateral Motion.

When a potential stalking horse bidder withdrew four days before filing—citing the company's high cash burn and DIP financing requirements—Desktop Metal faced what court filings described as an imminent "liquidity cliff" that left it unable to pay employees or prevent foreign subsidiaries from insolvency, as detailed in the First Day Declaration. The 64-day chapter 11 case covered 15 affiliated debtors and asset sales across multiple transactions: foreign subsidiaries in Germany, Italy, and Japan to Anzu Partners for $10 million on day one; dental businesses sold separately; and remaining assets including binder-jet intellectual property, the Production System platform, and Adaptive3D's elastomer technology sold to Arc Impact Acquisition Corporation for $7 million. From a peak market capitalization exceeding $9 billion in early 2021, the asset sales totaled under $20 million—a sequence that industry observers called "the definitive end of the third era of additive manufacturing."

From MIT Spinout to Fastest-Growing Unicorn

Desktop Metal was founded in October 2015 in Cambridge, Massachusetts, by seven co-founders with ties to MIT and the advanced materials industry. The founding team included Ric Fulop, an entrepreneur who had previously founded A123 Systems in 2001 to commercialize MIT materials science technology—a company that reached a $1.5 billion market cap and represented Boston's largest IPO in the prior decade. Fulop brought operational experience and venture capital connections from his five years as General Partner at North Bridge Venture Partners ($3 billion under management), where he had led Series A investments in Onshape, Markforged, Salsify, and Dyn. Joining Fulop were Jonah Myerberg (also from A123), Rick Chin (a SolidWorks veteran), and MIT professors Yet-Ming Chiang, Ely Sachs, Christopher Schuh, and A. John Hart.

The company focused on developing 3D metal printing technology for complex metal parts and industrial production applications. Desktop Metal attracted strategic and financial investors including Google Ventures, BMW, and Ford Motor Company. By early 2019, the company had raised $438 million in venture funding. Desktop Metal reached a $1.2 billion valuation by May 2018 and was described as the fastest-growing "unicorn" in United States history after surpassing a $1 billion valuation 21 months from founding.

The 2020 SPAC transaction. At the height of the special purpose acquisition company boom, Desktop Metal announced a reverse merger with Trine Acquisition Corp. in August 2020, valuing the combined company at $2.5 billion. The transaction provided up to $575 million in gross proceeds: $300 million from Trine's cash held in trust and $275 million from a PIPE investment priced at $10 per share. PIPE investors included Chamath Palihapitiya, Baron Capital, Miller Value Partners, XN, JB Straubel (Tesla co-founder), and HPS Investment Partners. The merger closed on December 10, 2020, with the combined company listing on the NYSE under ticker symbol "DM" and gaining $580 million in funding from Trine's trust account. Desktop Metal's market capitalization briefly exceeded $9 billion in early 2021.

Acquisition strategy. In 2021, Desktop Metal completed a series of acquisitions, assembling an additive manufacturing platform across multiple technologies and end markets:

The acquisitions expanded the corporate structure to 15 U.S. entities and foreign subsidiaries in Germany, Italy, and Japan. The company never turned a profit.

The 15-Debtor Enterprise

The chapter 11 filing encompassed 15 affiliated debtors, reflecting the corporate structure that Desktop Metal had assembled through acquisitions:

The debtors also operated foreign subsidiaries that were sold outside the bankruptcy process: ExOne GmbH (Germany), EnvisionTEC GmbH (Germany), A.I.D.R.O. Srl (Italy), and ExOne KK (Japan). These international operations represented acquired businesses that had been integrated into the Desktop Metal platform following the 2021 acquisitions.

The Nano Dimension Merger and Lead-Up to Bankruptcy

The bankruptcy followed a merger with Nano Dimension Ltd., an Israeli-American additive manufacturing company, that closed under a Delaware Court of Chancery order in April 2025.

Contested merger and Delaware litigation. In December 2024, Desktop Metal sued Nano Dimension in Delaware Court of Chancery, alleging that Nano had failed to obtain required regulatory approvals to close the previously agreed merger transaction. The legal battle that followed accumulated an estimated $90 million in disputed legal fees as Desktop Metal fought to compel merger completion. The Delaware Court of Chancery ordered Nano Dimension to consummate the acquisition.

April 2, 2025: Merger closes and funding stops. Nano Dimension completed the acquisition on April 2, 2025, paying $179.3 million or $5.295 per share—below Desktop Metal's peak valuation. According to subsequent reports, the following events occurred on the same day the merger closed:

• Nano Dimension provided a $12 million bridge loan to Desktop Metal
• Nano Dimension informed Desktop Metal that it would not provide any further funding
• Nano Dimension installed a new independent board of directors at Desktop Metal
• Nano Dimension hired restructuring advisors

Nano immediately began discussing plans to sell Desktop Metal in pieces following the merger, according to industry reports. Desktop Metal stock was removed from the NYSE on April 14, 2025, completing its transition from publicly traded company to a wholly owned subsidiary.

Merger triggers note default. The merger with Nano Dimension constituted an event of default under Desktop Metal's Convertible Senior Notes Indenture. The company had already missed required interest payments on these 2022 convertible notes, and the change of control accelerated the default. The Delaware litigation generated legal fees, including approximately $29 million owed to Quinn Emanuel Urquhart & Sullivan LLP for forcing Nano to complete the merger.

The July liquidity cliff. In July 2025, a stalking horse bidder came forward to potentially acquire Desktop Metal's assets and provide financing through the bankruptcy process. Then, on July 24, 2025—four days before the bankruptcy filing—the bidder withdrew. The bidder cited the DIP financing that would be required to support Desktop Metal's high cash burn rate as the reason for withdrawal.

The withdrawal left Desktop Metal on what court filings described as an "imminent liquidity cliff." The company was days from running out of cash entirely, facing inability to pay employees and the potential insolvency of foreign subsidiaries. In response, management arranged a private sale of the foreign subsidiaries to Anzu Partners to generate liquidity. Chapter 11 petitions followed four days later.

64-Day Liquidation Timeline

The Desktop Metal chapter 11 case confirmed a plan of liquidation 64 days after the petition date. The 15-debtor enterprise reported $100-500 million in scheduled assets and liabilities.

Cash Collateral—No DIP Financing.

The debtors did not obtain debtor-in-possession financing. Instead, the case was funded through cash collateral arrangements with prepetition secured lenders:

The capital structure reflected the multiple layers of debt that had accumulated during Desktop Metal's final years:

The absence of DIP financing meant that the debtors operated under a cash collateral budget and sale proceeds governed by the cash collateral orders.

Sale Process: Multiple Transactions Across 64 Days.

The Desktop Metal assets were monetized through a series of transactions that yielded less than $20 million in total proceeds for a company once valued at $2.5 billion.

Day-one private sale to Anzu Partners. On the same day the bankruptcy petitions were filed, the debtors closed the first tranche of a private sale to Anzu Special Acquisition Corp II, an affiliate of Anzu Partners. The court entered the Private Sale Order on July 31:

Anzu Partners manages approximately $1 billion in assets with a team of over fifty professionals across Atlanta, Boston, San Diego, Tampa, and Washington DC. The firm focuses on clean tech, industrial, and life science technology companies. Anzu indicated that its priority was to ensure stability for the acquired businesses and honor existing commitments to customers and employees.

The private sale was approved on an expedited basis without objection. The first lien paydown provisions in the cash collateral order allocated $1.5 million from the first closing and $4 million from the second closing to satisfy first lien obligations.

Dental business sales. The debtors separately marketed their dental laboratory operations, which had been assembled through multiple acquisitions:

The dental businesses were sold during the case.

Remaining assets auction. For the core Desktop Metal technology and intellectual property—the assets that represented the company's founding mission and $2.5 billion SPAC valuation—the debtors conducted a compressed auction under the Bidding Procedures Order:

Arc Impact acquisition. Arc Impact Acquisition Corporation emerged as the successful bidder, acquiring the remaining Desktop Metal assets for $7 million. The Sale Order was entered on September 4:

Arc Impact appointed Tom Nogueira as CEO of "Desktop Metal—an Arc Company" and announced plans to relaunch as an AI-driven advanced manufacturing platform. Bryan Wisk, CEO of Arc Impact (a public benefit corporation), stated that the acquisition aligned with Arc's focus on onshoring critical U.S. production capacity.

The acquired Desktop Metal technology is already deployed in government contracts:

Third Amended Plan of Liquidation.

The debtors filed a Combined Disclosure Statement and Plan on August 14, 2025—17 days after the petition date. After amendments and a confirmation objection from Nano Dimension, the Third Amended Plan of Liquidation was confirmed on September 30, 2025 by Confirmation Order.

Plan structure. The plan established two trusts to manage remaining assets and litigation:

Province Fiduciary Services, LLC serves as Plan Administrator, responsible for winding down the estates and making distributions in accordance with the confirmed plan.

Key plan provisions:

• Limited substantive consolidation for voting and distribution purposes only
• Limited debtor releases for Independent Directors, Committee, CRO, and CTO
• No third-party releases

Claim treatment. The plan established the following treatment for creditor classes:

Priority and secured classes receive payment in full, while Classes 4-7 receive pro rata trust distributions and equity interests are cancelled.

Contested Matters: Nano Dimension's Confirmation Objection

Nano Dimension Ltd., as both the acquirer that had completed the $179.3 million merger in April 2025 and a secured lender holding second lien claims, filed an Objection to Confirmation on September 5, 2025.

Nano Dimension had been required to complete the acquisition by the Delaware Court of Chancery after Desktop Metal sued over merger delays. Upon closing, Nano installed a new independent board, hired restructuring advisors, and provided a $12 million bridge loan before declining further funding. The bankruptcy cancelled Nano Dimension's equity investment while also subjecting its secured debt to recovery from the Administration Trust.

Despite the objection, the Bankruptcy Court confirmed the plan on September 30, 2025. Nano Dimension's claims were treated as Class 4 impaired claims, receiving pro rata distributions from Trust proceeds after satisfaction of senior claims, with any deficiency treated as a general unsecured claim in Class 7.

The Litigation Trust established under the plan is authorized to investigate and prosecute estate causes of action, and recoveries flow to the Administration Trust for distribution to creditors.

Professional Retentions and Fees

The following professionals were retained:

Andrew Hinkelman of FTI Consulting served as Chief Restructuring Officer, bringing financial consulting expertise to manage the liquidation process. Final fee applications were filed on October 21, 2025, with professional fee orders entered on November 17, 2025 and UCC counsel fee orders on December 10, 2025.

Industry Context: 3D Printing Sector in 2025

Desktop Metal's bankruptcy occurred during broader distress across the 3D printing industry. Industry reporting described 2025 as a year of mergers, acquisitions, restructurings, and company exits.

Market fundamentals. Despite the company-level distress, the underlying 3D printing market remains projected for significant growth:

Some industry analysts have characterized the Desktop Metal bankruptcy as marking "the definitive end of the third era of additive manufacturing"—a period defined by SPAC-fueled expansion, M&A activity, and growth-at-all-costs mentalities.

Key Timeline

Frequently Asked Questions

What was Desktop Metal and why did it file for chapter 11?

Desktop Metal was a 3D printing company founded in 2015 by MIT professors and entrepreneur Ric Fulop, focused on metal additive manufacturing technology. The company raised over $1 billion through venture capital and a 2020 SPAC transaction at a $2.5 billion valuation but never achieved profitability. The bankruptcy followed a court-ordered acquisition by Nano Dimension in April 2025, which triggered convertible note defaults and limited funding to a $12 million bridge loan. When a potential stalking horse bidder withdrew four days before filing, the company faced a liquidity crisis and filed for chapter 11 liquidation.

What triggered the bankruptcy filing?

The triggers were threefold: (1) the April 2025 merger with Nano Dimension triggered a default on convertible senior notes; (2) Nano Dimension provided only a $12 million bridge loan before declining further funding; and (3) a potential stalking horse bidder withdrew on July 24, 2025—four days before filing—citing the company's high cash burn and DIP financing requirements. The withdrawal left Desktop Metal on what court filings described as an imminent liquidity cliff, unable to pay employees or prevent foreign subsidiary insolvencies.

How quickly was the case resolved?

The chapter 11 plan of liquidation was confirmed on September 30, 2025—64 days after the July 28, 2025 petition date. The case relied on asset sales conducted during the 64-day period.

What happened to the foreign subsidiaries?

ExOne GmbH (Germany), ExOne KK (Japan), EnvisionTEC GmbH (Germany), and A.I.D.R.O. Srl (Italy) were sold to an affiliate of Anzu Partners for $10 million in a private sale that closed in two tranches—$4 million on July 28, 2025 (the petition date) and $6 million on August 8, 2025. The sale was approved on July 31, 2025 and proceeded without objection. Anzu Partners, which manages approximately $1 billion in assets, focuses on clean tech, industrial, and life science technology companies.

Who bought the remaining Desktop Metal assets?

Arc Impact Acquisition Corporation purchased the core remaining assets for $7 million, with the sale finalized on September 4, 2025. The acquired assets included binder-jet intellectual property, the Production System and X-Series platforms, Adaptive3D's DuraChain elastomers and FreeFoam expandable resins, and several operating entities. Arc Impact is a public benefit corporation relaunching Desktop Metal as an AI-driven advanced manufacturing platform with a focus on government and defense contracts.

How much did investors lose?

Desktop Metal's 2020 SPAC valued the company at $2.5 billion, with market capitalization exceeding $9 billion at its early 2021 peak. Nano Dimension acquired it for $179.3 million in April 2025. Total asset sales in bankruptcy yielded under $20 million ($10 million to Anzu Partners and $7 million to Arc Impact, plus dental business proceeds). Equity holders, including Nano Dimension as sole post-acquisition shareholder, received nothing under the confirmed plan.

Why did Nano Dimension seek to sell Desktop Metal?

Nano Dimension was required to complete the $179.3 million acquisition by the Delaware Court of Chancery after Desktop Metal sued over merger delays in December 2024. Industry reports indicate that Nano Dimension had already been discussing selling off Desktop Metal before the merger closed. On the day the acquisition completed, Nano installed a new independent board, hired restructuring advisors, and declined to provide funding beyond a $12 million bridge loan. The bankruptcy filing occurred 117 days after acquisition closing.

What was the Quinn Emanuel claim?

Desktop Metal owed approximately $29 million to Quinn Emanuel Urquhart & Sullivan LLP for legal work that successfully forced Nano Dimension to complete the merger through the Delaware Court of Chancery litigation. Quinn Emanuel held a pre-petition attachment on certain Desktop Metal assets, giving it secured creditor status treated as Class 6 under the plan—receiving pro rata distributions from Trust proceeds after senior claims, with any deficiency treated as a general unsecured claim.

How much debt did Desktop Metal have?

Total debt exceeded $138 million, including first lien secured notes held by AHG lenders, second lien secured notes held by Nano Dimension, third lien secured notes, convertible senior notes on which the company had missed interest payments, and the Quinn Emanuel legal fees claim. The capital structure reflected multiple layers of secured and unsecured obligations that had accumulated as the company burned through cash without achieving profitability.

What does this mean for the 3D printing industry?

Industry analysts characterized Desktop Metal's bankruptcy as marking "the definitive end of the third era of additive manufacturing"—a period defined by SPAC transactions, acquisition strategies, and growth-at-all-costs mentalities. The 3D printing market is projected to grow from $25 billion in 2024 to $74 billion by 2030, and industry reporting described 2025 as a year of mergers, acquisitions, restructurings, and company exits.

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