A blueprint for success? Exploring business models of additive manufacturing ventures

Additive Manufacturing (AM) was expected to be the next great technological revolution, yet the predicted market growth has fallen short by 40%. Using a proprietary, cross-sectional data set of 350 ventures in the AM field founded between 2000 and 2017, this study analyses AM companies from a business model perspective. Specifically, we explore which value delivery and value capture mechanisms are decisive for AM venture success, measured via their operational and ownership state. We reveal that targeting the B2B market and selling via partner networks significantly increases firm survival likelihood. Further, applying a recurring revenue model increases the likelihood of an IPO. Our main contributions are two-fold: first, our research complements the business model literature by evaluating value delivery and capture in the AM entrepreneurial space, revealing that customer segments, sales channels, and revenue models are key to venture success. Second, we provide business model design guidelines to entrepreneurs as well venture capitalists in the AM field. • Targeting the B2B market positively influences the likelihood of Additive Manufacturing ventures to succeed in the market • Selling indirectly via partners also positively influences the likelihood of AM ventures to survive • Contrary to our expectations applying a recurring revenue model has no effect on venture survival. • Analysis is based on observational data of 350 from three different data sources, namely a proprietary dataset from a venture capital fund that exclusively focuses on the AM field, as well as Pitchbook and Crunchbase.