Divergent Technologies, Torrance, California, USA, a developer of Additive Manufacturing technology for the automotive industry leveraged by Czinger Vehicles, has announced that it has closed a new $60 million venture loan facility led by Horizon Technology Finance Corporation and a further $20 million revolving line of credit provided by Bridge Bank, a division of Western Alliance Bank. This total of $80 million in finance follows Divergent’s successful $160 million Series C funding earlier this year.
Under the terms of the venture loan agreement, Horizon funded $15 million of the initial draw from the venture loan facility, and a private investment vehicle managed by Horizon Technology Finance Management LLC, Horizon’s adviser, funded $5 million. The venture loan facility is said to provide up to an additional $40 million of funding to Divergent upon meeting specific milestones. Under the terms of the line of credit, Bridge Bank established a $20 million line of credit with Divergent who will use the funds for growth and working capital purposes.
Divergent Technologies aims to make the vehicle manufacturing process more efficient and less wasteful using Additive Manufacturing. Through the company’s Divergent Adaptive Production System (DAPS®), it replaces the conventional structure design and production process, which is reliant on legacy software, vehicle architectures, tooling and related factory assets with a proprietary, patented, end-to-end system for vehicle design and engineering, volume manufacturing and assembly.
“We are pleased to receive support from Horizon and Bridge Bank as we continue to revolutionise complex industrial manufacturing, initially with automobiles and over time with aerospace and defence,” commented Kevin Czinger, lead inventor, founder and Chief Executive Officer of Divergent. “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 utilise 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.”
Gerald A Michaud, president of Horizon, stated, “Divergent is changing the game for manufacturing vehicles, with their DAPS end-to-end platform providing manufacturers with unmatched cost savings and flexibility. 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.”
Mike Lederman, Senior Managing Director in Bridge Bank’s Technology Banking Group, added, “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. Divergent is rethinking the manufacturing process for the auto industry and we are pleased to help support the company’s evolution.”
Discover more about how Czinger Vehicles is using Divergent’s technology in our article: How the Czinger 21C is redefining next-generation car manufacturing