The conversation around capital in emerging technologiesis shifting. After a period defined by scarcity and uncertainty, investors and industry leaders are now looking toward a more optimistic future, one grounded in realistic valuations and strategic growth. Private capital is not returning to 2021 or 2022 levels, but the capital that is available is smarter, more targeted, and aligned with long-term trends like strategic manufacturing investment, supply chain resilience, and AI-driven innovation. As venture capital volume has slowed, AM companies are increasingly turning to alternative funding sources to scale and stay competitive. Convertible debt, structured financing, and private placements are becoming more common among companies that previously raised capital at high valuations, as they seek to avoid resetting valuation expectations by pushing out those discussions until markets stabilize. Some companies are also exploring strategic partnerships and joint ventures as ways to access growth capital without taking on traditional equity dilution. Together, these trends reflect a shifting capital landscape where alternative financing structures and strategic capital partnerships are becoming essential tools for growth and technological advancement. Meanwhile, M&A remains an important pathway for growth and scale in the advanced manufacturing space, with several high-profile deals highlighting renewed momentum. Synopsys’ acquisition of Ansys marks one of the largest software-focused transactions in the space, while Nidec’s surprise bid for Makino signals aggressive interest from established corporations seeking to expand manufacturing portfolios. “Nidec has been quite inquisitive,” noted Danny Piper, managing partner of NewCap Partners Inc., underscoring Nidec’s ambition to grow beyond its core markets. However, as deals grow larger, they also become more complex, with regulatory hurdles shaping how and where transactions get done. Alongside M&A and alternative forms of capital, reshoring and nearshoring reshape how and where manufacturing capital is deployed. Heightened geopolitical tensions and tariffs are pushing manufacturers to rethink global supply chains. “We have a dependence upon China for manufacturing, and that is becoming a systemic problem,” Piper emphasized. Investors are taking notice, aligning capital behind companies poised to support U.S.-based production – especially in critical sectors like aerospace, defense, and energy. This trend isn’t just about location; it’s also about capability. Companies that can localize production while maintaining high quality and efficiency will be in the best position to withstand supply chain and geopolitical uncertainty. Perhaps the most exciting shift in capital focus is toward artificial intelligence (AI). AI is not only driving increased automation but also improving production reliability, reducing costs, and enabling real-time process monitoring. “AI is a game changer for additive manufacturing,” said Arno Held, managing partner of AM Ventures. He emphasized how AI can optimize process parameters in real time to achieve desired mechanical properties, reduce post-processing, and dramatically improve consistency. AI-driven insights into machine health and optimization could even outpace traditional service engineers, leading to higher uptime and lower per-part costs. The investment community is already taking notice of AI’s promise. Backflip, an AI-enabled design software startup founded by former Markforged leaders, recently raised $30 million, highlighting AI's growing appeal in manufacturing applications. Capital is slowly returning to AM, flowing toward companies that are focused, disciplined, and aligned with key technologies and tech trends. Those that leverage strategic M&A, reshoring opportunities, and AI-driven innovation will define the next chapter in additive – one that moves toward sustainable and scalable growth. For ongoing insights and expert analysis, stay tuned for advanced manufacturing market coverage from AMT’s Research Services team. For questions about coverage areas and ways we can support companies, please send us a note at research@AMTonline.org.
The conversation around capital in emerging technologies is shifting. After a period defined by scarcity and uncertainty, investors and industry leaders are now looking toward a more optimistic future, one grounded in realistic valuations and strategic growth.
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