US blue laser company Nuburu plans to raise nearly $65 million in funding

Recently, Nuburu, a high-power industrial blue light laser company in the United States, announced that the company has agreed to a new financing arrangement worth up to $65 million.

This agreement was reached between Nuburu and the Delaware hedge fund Liquous LP, which claims to provide a "customized liquidity solution". According to the terms of the agreement, Nuburu will first receive an initial funding of $3 million from Liquous, followed by weekly installments of $1.25 million, for a total of $10 million.

Nuburu's fiber optic transmission "BL-F" series industrial blue light lasers can provide up to 1 kW of output power and are said to be able to produce deeper welds at high speed on copper or aluminum foil and busbars, with thicknesses ranging from a few micrometers to one millimeter. (Image source: Nuburu)

In addition, the agreement also includes a unique "equity credit line" arrangement that provides Nuburu with an additional $50 million in funding, accompanied by pre financed warrants.

Provide financial support to accelerate the commercialization process
In the past year, facing the dilemma of funding shortage, Nuburu has been actively seeking financing channels. In November 2023, the company successfully obtained a bridge loan of $5.5 million. In April of this year, another $3 million was raised through a combination of strategic investments and customer purchase orders.

Nuburu's 2023 annual report shows that its sales revenue is only over $2 million, while its operating loss is as high as nearly $22 million. The quarterly report as of June 30th this year showed that the company's total cash and equivalents were only slightly over $100000.

The financing of Liquous is seen as a "critical moment" for Nuburu, providing the company with a predictable funding channel to accelerate its commercialization process.

Nuburu's CEO Brian Nali (who took over from co-founder Mark Zedick last year) stated in a statement that this transaction is an "important step forward".
He emphasized that this financing not only reflects the company's commitment to strengthening its balance sheet and financial condition, but also demonstrates Liquous' confidence in Nuburu's breakthrough technology and its ability to change key industries. At the same time, he also pointed out that the terms of this financing are favorable and the dilution is limited, which proves the mutual recognition of the company's long-term potential by both parties.

Significant technological advantages and continuously increasing market share
Liquous stated that the agreement reached by both parties has alleviated the issue of stock dilution through pre financing warrants, which will be executed at the market price at the time of investment and allow for potential price appreciation and flexibility for each component.

Liquous also pointed out that Nuburu's recent contract with NASA, as well as its groundbreaking blue light laser technology and key customers including the US Air Force, indicate that the company's market share is constantly growing in industries that require precision and high-speed machining, such as space exploration and aerospace.

(Image source: Nuburu)

Nuburu was the first to develop a diode based blue industrial laser, which utilizes the characteristics of shorter wavelengths and has extremely high absorption rates for metals, especially non-ferrous metals such as copper. This technology is expected to have significant advantages in various industrial applications such as electric vehicle battery welding and additive manufacturing.

The blue light laser semiconductor market has enormous potential
According to a report released by market research firm Technavio, it is predicted that the global blue light laser semiconductor market will increase by $334.9 million by 2028, with a compound annual growth rate of 15.2% between 2023 and 2028.

In recent years, blue light laser semiconductors have been widely used in material processing equipment, 3D printers, and fiber optic communication networks. Lidar systems are also one of the important areas driving market growth, and blue laser diodes are used to create 3D maps due to their excellent brightness and high reliability. Meanwhile, in cameras, blue laser diodes are also widely used for ranging, target selection, and illumination.

At present, the blue light laser semiconductor market is still expanding. They are widely used in medical equipment, broadband communication systems in telecommunications industry data centers, and industrial processes such as precision cutting, welding, heat treatment, and cladding. At the same time, with the emergence of new fields such as autonomous vehicle and radar systems, the application prospects of blue laser diodes are broader.

However, to achieve key performance such as high output power, monochromaticity, coherence, and directionality, continuous technological innovation and breakthroughs are still needed. At present, companies such as Hamamatsu Optoelectronics are in a leading position in the market, but competition is becoming increasingly fierce, and other semiconductor equipment manufacturers are also actively investing in research and development and market expansion.

Source: Yangtze River Delta Laser Alliance