Recently, Nuburu, a high-power industrial blue laser company in United States, announced that it has agreed to a new financing arrangement worth up to US$65 million (about 458.9 million yuan).
The agreement was reached between Nuburu and United States-based Delaware hedge fund liquous LP, which claims to provide "customized liquidity solutions". Under the terms of the agreement, Nuburu will receive initial funding of US$3 million from liquous, followed by US$1.25 million in weekly instalments, for a total of US$10 million.
Nuburu's fiber-optic delivery "BL-F" series of industrial blue lasers deliver up to 1 kilowatt of output power and are claimed to be able to produce deeper welds at high speeds on copper or aluminum foil and busbars, ranging in thickness from a few microns to one millimeter. (Source: Nuburu)
In addition, the agreement contains a unique "equity credit line" arrangement, which provides Nuburu with an additional $50 million in funding and comes with pre-financed warrants.
Provide financial support to accelerate the commercialization process
Over the past year, Nuburu has been actively seeking ways to raise funds in the face of a lack of funds. In November 2023, the company successfully secured a $5.5 million bridge loan. In April of this year, another $3 million was raised through a combination of strategic investments and customer purchase orders.
Nuburu's 2023 annual report shows that its sales revenue is just over $2 million, while its operating loss is as high as nearly $22 million. The company's quarterly report for the quarter ended June 30 showed that the company's total cash and equivalents were just over $100,000.
The liquous capital raising is seen as a "pivotal moment" for Nuburu, providing the company with predictable access to capital to accelerate its commercialisation journey.
Nuburu's chief executive, Brian · Nelli, who succeeded co-founder Mark · Zedik last year, said in a statement that the deal was a "significant step forward".
He highlighted that the financing not only demonstrates the company's commitment to strengthening its balance sheet and financial position, but also demonstrates liquous' confidence in Nuburu's breakthrough technology and its ability to transform key industries. At the same time, he noted that the terms of the financing were favorable and the dilution was limited, which is a testament to the mutual recognition of the company's long-term potential.
The technical advantages are significant, and the market share is rising
For its part, Liquous said the agreement reached between the two parties mitigates the issue of equity dilution by way of pre-financing warrants, which will be executed at the market price at the time of investment, and allows for potential price appreciation and flexibility on a per-part basis.
Liquous also noted that Nuburu's recent contract United States with NASA, as well as its groundbreaking blue laser technology and key customers, including the United States Air Force, are indicative of the company's growing market presence in industries that require precision and high-speed machining, such as space exploration and aerospace.
(Source: Nuburu)
Nuburu pioneered the development of diode-based blue industrial lasers that take advantage of the characteristics of shorter wavelengths and have extremely high absorption rates for metals, especially non-ferrous metals such as copper. This technology is expected to be of great use in several industrial applications, such as electric vehicle battery welding and additive manufacturing.
The market potential for blue laser semiconductors is huge
According to a report released by market research company Technavio, the global blue laser semiconductor market size will increase by $334.9 million by 2028, with a compound annual growth rate of 15.2% between 2023 and 2028.
In recent years, blue laser semiconductors have been widely used in material processing equipment, 3D printers, and optical fiber communication networks. Lidar systems are also one of the significant areas driving the growth of the market, with blue laser diodes being used to create 3D maps due to their superior brightness and high reliability. At the same time, blue laser diodes are also widely used in cameras, such as distance measurement, target selection, and illumination.
At present, the blue laser semiconductor market is still expanding. They are widely used in medical equipment, broadband communication systems for data centers in the telecommunications industry, and industrial processes such as precision cutting, welding, heat treatment, cladding, and more. At the same time, with the emergence of new fields such as autonomous vehicles and radar systems, the application prospects of blue laser diodes are broader.
However, to achieve key properties such as high output power, monochromaticity, coherence and directivity, continuous technological innovation and breakthroughs are still required. At present, companies such as Hamamatsu Optoelectronics are leading the market, but the competition is becoming increasingly fierce, and other semiconductor equipment manufacturers are also actively investing in R&D and market expansion.
From: ofweek
Reprinted by Chen Changjun of the Yangtze River Delta G60 Laser Alliance