Divergent Applied sciences closes $80 million value of financing

Divergent Applied sciences Inc., the corporate that developed the world’s first end-to-end digital manufacturing system – revolutionizing industrial-scale manufacturing, has closed a brand new $60 million enterprise mortgage facility led by Horizon Expertise Finance Company, and a brand new $20 million revolving line of credit score supplied by Bridge Financial institution, a division of Western Alliance Financial institution. The brand new services comply with Divergent’s profitable $160 million Sequence C funding earlier this yr.

Beneath the phrases of the enterprise mortgage settlement, Horizon, a number one specialty finance firm that gives capital within the type of secured loans to enterprise capital-backed firms within the expertise, life science, healthcare info and companies, and sustainability industries, funded $15 million of the preliminary draw from the enterprise mortgage facility, and a personal funding automobile managed by Horizon Expertise Finance Administration LLC, Horizon’s adviser, funded the opposite $5 million. The enterprise mortgage facility gives as much as an extra $40 million of funding to Divergent upon assembly sure milestones.

Beneath the phrases of the road of credit score, Bridge Financial institution, whose Expertise Banking Group gives financing options to enterprise capital-backed expertise firms in any respect levels of their life cycle, established a $20 million line of credit score with Divergent – who will use the funds for development and dealing capital functions.

Divergent is constructing a world manufacturing infrastructure platform for the following era industrial economic system – with a present deal with the automotive trade. Its full-stack, state-of-the-art Divergent Adaptive Manufacturing System (DAPS) concurrently aids in automating design, additively manufacturing and assembling advanced automobile constructions. In consequence, the DAPS platform considerably reduces improvement and manufacturing timelines, and Divergent has established a world-class pipeline of OEM prospects.

“We’re happy to obtain assist from Horizon and Bridge Financial institution as we proceed to revolutionize advanced industrial manufacturing, initially with cars and over time with aerospace and protection,” mentioned Kevin Czinger, lead inventor, founder and Chief Government Officer of Divergent. “DAPS makes it doable for the primary time for producers to forego the capital-intensive static design system they’ve been accustomed to for over a century, and make the most of a variable price versatile design system that’s considerably extra environment friendly. Via this added effectivity, DAPS radically reduces the affect of producing on the atmosphere, thereby making a significant contribution to world sustainability.”

“Divergent is altering the sport for manufacturing autos, with their DAPS end-to-end platform offering producers with unmatched price financial savings and adaptability,” mentioned Gerald A. Michaud, President of Horizon. “With over 500 patent filings, DAPS is a cutting-edge strategy that permits Divergent prospects to create new product fashions far more rapidly and effectively. We’re excited to assist Divergent’s development and growth.”

“Divergent is radically reworking auto manufacturing economics and environmental affect, and it’s thrilling to see Divergent ship an answer that addresses system stage challenges,” mentioned Mike Lederman, Senior Managing Director in Bridge Financial institution’s Expertise Banking Group. “Divergent is rethinking the manufacturing course of for the auto trade and we’re happy to assist assist the corporate’s evolution.”

BayCross Capital Group acted as the location agent on the debt (the securities portion of which was carried out through StillPoint Capital, LLC Member FINRA/SIPC).