Great news from Axial3D, which has raised an $18.2 million investment round.Increasing their investment were Techstart, Clarendon, and Innovation Ulster Limited, while new investors included 57 Stars, Whiterock, and Innovate UK.The company aims to use the funding to scale its product offering globally.I’m a fan of Axial3D.
The Belfast-based firm has successfully combined the power of AI with a solution that simplifies the process of converting DICOM files into 3D-printed models.Their straightforward approach enables staff to effortlessly obtain files or parts, making it a specific, time-saving, and user-friendly option for hospital administrators.This method effectively addresses market needs.With the new collaboration, customers can upload medical files to a secure cloud-based service where Axial3D’s AI powered software automatically converts medical scans into 3D printable filesAxial3D CEO Roger Johnston,“We are delighted to have completed this investment round, which will enable us to accelerate our mission of making patient-specific surgery routine globally.
Our market-fundamental patented technology platform empowers medical device companies, medical imaging companies, and hospitals to standardize the use of incredibly precise, patient specific 3D data that transforms their offerings for patients.Our AI technology has the power to impact millions of patients globally across patient specific applications in robotics, planning and patient specific device workflows.”Neil McCabe, Director of Whiterock, who put in $10 million said,“Axial3D’s technology addresses a critical need in healthcare—enabling scalability in personalized care.We’re proud to join this journey, supporting a company that is paving the way for more accessible and precise surgical solutions worldwide.”Axial3D recently partnered with GE Healthcare, expanded into training, opened a new facility, secured a $10 million investment from Stratasys, and began collaborating with researchers in the Netherlands and Switzerland.
The company’s collaborative approach has been instrumental to its growth.Offering a comprehensive, easy-to-oversee solution has been a key development, setting it apart by providing an entire DICOM, segmentation, and 3D model printing solution.This approach minimizes risk for hospitals, which can outsource the process rather than invest in printers, hire staff, and dedicate space to in-house printing.This model requires significantly less upfront investment.
If the arrangement proves unsuitable, hospitals can simply let the contract lapse without additional complications such as layoffs.Such ease of implementation is highly appealing in the already complex environment of healthcare.Administrators likely see this as a low-risk, convenient option, knowing they can always invest in printers down the line if needed.For Axial3D, delivering consistent quality and maintaining cost competitiveness will be critical.
If successful, the firm can grow hospital by hospital, gradually conquering the personalized model market.However, there is a potential risk of being perceived as an entry-level solution, analogous to AOL’s CD-ROM promotion—a starting point that might eventually be replaced by more sophisticated in-house alternatives.(Image credit: Axial3D)It was AOL that brought the internet to tens of millions, and similarly, Axial3D’s ease of use and consistent performance could enable it to dominate in specific geographic areas for years to come.The geographical aspect of its strategy is crucial: once Axial secures a hospital, expanding the user base within that institution will be essential, as it directly drives model revenue.
Without offering the full solution, including model production, there’s no recurring model revenue and no inherent drive to simplify the process for widespread adoption.Making the system intuitive enough for anyone to order a model with just a few clicks could significantly enhance Axial’s presence within hospitals, making it harder for competitors to displace them.This strategy mirrors Starbucks’ approach, where dense clustering of outlets creates market dominance.Even if individual store revenues are diluted locally, system-wide revenues grow, and competitors are deterred from entering the market.
Axial could apply this method, not to raise prices later, but to secure a long-term hold on the market in targeted regions.Focusing on areas with high hospital density, where machine utilization rates can remain high, would maximize profitability.While global expansion is attractive, prioritizing cities like New York, Taipei, and Seoul could yield far greater strategic value, establishing a stronghold in these healthcare hubs and ensuring sustained dominance in those regions.Subscribe to Our Email NewsletterStay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.
