Divergent Technologies, a company that developed a digital production system for industrial-scale manufacturing, closed a new $60 million venture loan facility led by Horizon Technology Finance and a new $20 million revolving line of credit provided by Bridge Bank, a division of Western Alliance Bank. The new facilities follow Divergent’s $160 million Series C funding earlier this year.
Horizon Technology Finance, a specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in the technology, life science, healthcare information and services and sustainability industries, funded $15 million of the initial draw from the venture loan facility, and a private investment vehicle managed by Horizon Technology Finance Management, Horizon Technology Finance’s adviser, funded $5 million. The venture loan facility provides up to an additional $40 million of funding to Divergent upon meeting certain milestones.
Bridge Bank, whose technology banking group provides financing solutions to venture capital-backed technology companies, established a $20 million line of credit with Divergent, which will use the funds for growth and working capital purposes.
Divergent is building a global manufacturing infrastructure platform for the next generation industrial economy, with a current focus on the automotive industry. Its Divergent Adaptive Production System (DAPS) simultaneously aids in automating design, 3-D printing and assembling complex vehicle structures.
“We are pleased to receive support from Horizon and Bridge Bank as we continue to revolutionize complex industrial manufacturing, initially with automobiles and over time with aerospace and defense,” Kevin Czinger, lead inventor, founder and CEO of Divergent Technologies, said. “DAPS makes it possible for the first time for manufacturers to forego the capital-intensive static design system they have been accustomed to for over a century and utilize a variable cost flexible design system that is significantly more efficient. Through this added efficiency, DAPS radically reduces the impact of manufacturing on the environment, thereby making a meaningful contribution to global sustainability.”
“Divergent is changing the game for manufacturing vehicles, with their DAPS end-to-end platform providing manufacturers with unmatched cost savings and flexibility,” Gerald A. Michaud, president of Horizon Technology Finance, said. “With over 500 patent filings, DAPS is a cutting-edge approach that enables Divergent customers to create new product models much more quickly and efficiently. We are excited to support Divergent’s growth and expansion.”
“Divergent is radically transforming auto manufacturing economics and environmental impact, and it is exciting to see Divergent deliver a solution that addresses system level challenges,” Mike Lederman, senior managing director of the technology banking group at Bridge Bank, said. “Divergent is rethinking the manufacturing process for the auto industry and we are pleased to help support the company’s evolution.”