So, Robo 3D has been sold. I can’t help but cringe and think that this was not related to actually wanting to sell, but rather being “forced” to sell.
Apparently, Falcon Minerals already had 51% control of RoBo 3D since March and that allowed them to expand to Staples. They have plans for other large retailers like BestBuy, Costco and so on. So, maybe it’s not that bad, as it appears… The news article title intentionally tries to make it sensational 
@Shai_Schechter If founders managed successful financial exit for their original investors, they should have no problem to secure seed funding for whatever idea they might have now.
@Branden_Coates they’ve had rough start mostly due to being understaffed coming from a very successful Kickstarter campaign (severely underestimated the demand), but technically they are quite solid and their printers are one of the best in their class, plus everything is open and hackable…
Sounds like a reverse merger deal… If you know anything about those, it’s usually sketchy… Hope the founders are ok. I run for the hills when I have been approached for these deals.
@Brook_Drumm I agree, but I get the feeling that they saw it as their only option going forward.
And on top of that, they have a new kickstarter coming out soon. Doesn’t make sense when they just raised over $1 mil in funding. Only reason I can think of is publicity.
It doesn’t take long to burn a few million bucks in funding on salaries, facilities, tooling…
Braydon Moreno posted on FB :
“I just want you to know this is more of a public offering on the Australian Stock Exchange than anything close to a takeover. Robo is still Robo. This will give us access to public funds that will help us to grow this business but our mission, values, and ideals within the company will stay the same.”
@Ryan_Carlyle Turns out you were right. They ran out of cash multiple times and had to recall their machines.
I like these guys, they have been good company every time I’ve seen them at a show. So nothing against them personally. I like to be on good relations with all (ok, most) competition.
From a business perspective, by definition, when the founders loose majority position, the leadership changes. For successful companies, changing leadership is bad. For failing or underperforming companies due to a lack of good leadership, a change of leadership can be good. Not having any first hand knowledge of the company’s leadership, I don’t know what the companies performance has been.
One thing I do know, you can’t listen to the press to find out if a company is healthy. Period. Of the CEO, in many cases… And I’m a CEO of a 3D printing company. 
One other unknown. The cash a company has on hand can either save a company or, if cash is short, ruin it. So a cash infusion, or new access to cash reserves, can really be a good thing for some companies. I buyer would certainly believe this to be true. Oddly, a company without enough cash can actually be killed by good sales that they don’t have enough cash to manufacture.
We don’t have enough info to determine what the deal is here. Time will tell.
But (almost) all reverse mergers are very bad for founders. And there are obscure enough to raise eyebrows with my CFO- a guy with extensive startup experience in Silicon Valley. The phrase itself brought an instant negative reaction.
I really do wish Robo3D well. But I personally will never be a part of a transaction like this. I’m not saying I’d never sell, but I just don’t see it. If I can’t lead my company to continued success, I guess I would entertain a fire sale. But I’ll never work for someone else leading my company. I’d go do something else. I’m a bad follower. And a sale means they have other leaders in the mix.
I’ve talked to very successful companies who recently have taken on millions. They brag about who invested. I roll my eyes and ask how much equity they had to give up. After hearing they have a small slice of the pie, they asked me what I own. 100% (although I have given some options to my sr. People). Their response was “you win”. I don’t tell the story to be a self-congratulatory jerk. I tell it to say investors bring some very real realities the are painful. You give up total control when you take $1. For some, it’s still a good choice especially if it’s a strategic partner. For me it’s a lifestyle decision. I’d rather have control over my company than loads of cash.
Brook
Printrbot
100% brook. Braydon is a cool dude, we’ve spoken a few times at shows. But I also hate to see someone give up their baby (don’t know if that’s the case here, but seems so).
Here’s his statement: https://www.facebook.com/braydonmoreno