Small Empires: Shapeways and the business of 3D printing
Small Empires: Shapeways and the business of 3D printing
2013-08-29
I'm Alexis Ohanian I started startups
invested in them and met amazing people
using the internet to change the world
our generation has an opportunity unlike
any other we can create small empires
without anyone's permission the Internet
is a global platform a company that
started in the Netherlands is now
headquartered here on Park Avenue now
this is not a street where you'd expect
to find a start-up revolutionising
manufacturing and that's exactly what
shapeways is doing hello I'm Alexis
welcome Shapeways is a 3d printing
community and marketplace so anyone can
go to our website you can look at the
crazy designs the beautiful designs that
our community has created over six
hundred thousand of them you can
customize lots of them by just clicking
putting in your initials you know
changing the shape a little bit really
easy and then if you are into 3d
software or you want to learn 3d
software and there's plenty of that even
for free these days you can design your
own thing and then upload it to our site
and you can see what I would cost you
can have it made by us in all kinds of
different materials from plastics to
metal to silver gold-plated brass now
you know all kinds of materials and then
you get it at home you get your special
product made just for you and like a few
weeks later now so just to be clear I
could have a sad Keanu in gold-plated
brass yes you could
Wow I couldn't get out of my head the
sad Keanu mean I was going around and
and I don't know if you've seen this
backing right there I had to bring this
what's this
that's you that's your sad Keanu me oh
my god this this is a like happy period
for all of us we were I know on cloud
nine but anyway finally I have him in
the palm of my hand
we originally started in the Netherlands
in Eindhoven to give it some perspective
and tone actually was a very small town
that grew really quickly because Philip
still big factories there and then they
built a city with with workers and then
everything moves out to to Asia and
Eastern Europe when we spun out of
Philips which actually was our starting
ground we went into an office that had
some place to do some manufacturing and
at the same time we opened our our main
office here in Manhattan so here we
build a great team of like marketers
product people and engineers and back in
- we had a supply chain team and we had
a customer support team and the world
we're really eager to learn more about
3d printing because at that time we were
we outsource everything so we bought our
first 3d printer there this was in late
2010 and so we started to learn about it
and pretty pretty soon if we figured out
that we could do this really well all
right so this is the entrance yes am I
allowed to just go in absolutely you
lead the way now we're pretty pretty
open here and so I noticed you can't go
too far without seeing some what are
presumably shapeways yes pretty much
everything it's safe to assume we made
so this is I believe st. Basil's
Cathedral in Moscow yes in full color
sandstone roughly how long does entire
manufacturing process takes you have any
sense yeah so we print actually in a
large print tray so we don't print one
thing at a time we put many things in a
large tray at a given time
and so we say for those trays to be
printed and then for the breakout and
for all the powder to be slept away it's
typically about nine hours yeah perfect
Wow that's amazing it feels like
sandstone I don't know it's it's
definitely heavy this is substantial I
kind of want to flip it over and look
underneath
can we see what that looks like on the
inside oh it's a little game of Tetris
so moving in here see our fabulous
management team as you can tell they sit
in the middle of it with all of us which
is the medium and you have the brass
knuckles so you clearly the enforcer now
I actually have the breast pizza cutter
that's genius the Mario mobius and a
bacon Mobius that's amazing how bacon
that how do people come up with this
stuff like that's imagine cut a little
better a better customers that's a magic
of our mind let me throw this at you now
3d printing can be done with a lot of
materials why not Mobius bacon made out
of bacon we are there with 3d food
printing technology or not no we're not
there yet yeah people are learning
burger yes emerita me yes
yeah little makers not me why are they
going to burritos when you could just
have bacon you got a baby stepper you
can't that's our Minimum Viable Product
bacon is minimum viable product
you guys were inside this massive Dutch
company and your startup life it wasn't
you quitting your job it wasn't you you
know graduated from college this was you
like taking this thing out of a massive
company and starting something how did
that come about
I've always been part of startups the
first one actually was a company that
published the first free 3d software
called blender so that was one of the
reasons why I got really excited about
3d printing but when I got the idea I
mean where do you get money in eindhoven
there is not a big angel investor scene
there are no VCS
other banks but hey banks don't take
risks they give you money when you don't
need it typically yeah um so yeah how do
you get money and the friend who
introduced me to 3d printing he was
actually working on in Phillips as a
manager on the lifestyle incubator board
and he said why don't you pitch to us so
actually what I did is I quit a startup
I was CTO it pitched for them and joined
Phillips to start a company which is
kind of talking within a company yes
because Phillips at the time had three
incubators focused on their core domains
one of them was the lifestyle incubator
and within the lifestyle incubator they
felt this make total sense and since the
amounts I was asking for for them were
reasonable maybe even small they said
well let's give sky shop so this is
product and design maintaining the front
end of everything and here are the
geniuses behind the back end of
everything so this is our whole glorious
team whom we love deeply yeah you guys
always development I presume this is the
most popular thing on shape boys right
now
you would've think so but evidently it's
not I don't want these people well
they're gonna after they see this
they're gonna know whoever created this
grumpy cat bust is going to be doing
very well after the show airs it's
fantastic
what why are you working here at J boys
we're gonna show you what we doing
before this before this I've had a ton
of different jobs I worked in them for
finance our contract day my and I worked
in other startups and I came to shape
days just over a year ago and I was
interviewing much different places and
it was just like it seemed to be the
most fun it seemed to be the most
motivated group of engineers working on
the coolest technology that I'd seen and
a completely emerging sector so like all
of those things just came together so
yeah this is kind of a no-brainer all
right so let's say and I've got a couple
of friends who have been and are in this
situation right now and they're they're
they're good at the work that they do
they just feel like government contract
work isn't exactly the most stimulating
what do you tell them we're watching
this right now and basically see where
you work right now see the folks you
work with and work for and and go like I
want your job and yeah I don't know it's
just we have more fun we have more fun
we do you get to work on a product that
you really believe and in a lot of folks
who are doing like the bigger businesses
do work on products they believe it but
it's you're so close to the end result
like if you work in a government
contract least in my experience you know
you're working on a huge aircraft
carrier or a big fighter planes like
well that's big but I don't I uh nav
Airy small piece of it here you're in
the whole process from start to finish
from complete ideation of ideas and
products to actually implementation
building them and then you get to hold
something like this in your hand the end
of a so it's like you have real tangible
results that come out of all the work
that you put into it so I think that for
me anyway that's breathe
we have our our marketing team is over
here these are the materials geniuses as
we refer to them hello
oh you're the guys have to talk to you
about the bacon mobius strips made out
of bacon okay do we have the technology
for that yet 3d printing land not quite
I mean people are printing on like human
organs for replacements like if you were
to lose it here they can do like sell
deposition row and print your near so
hypothetically you could it seems like
if they could make it for your belly fat
cells you could make bacon yeah you
should be able to you're really
expensive but but worth it maybe if I
opened a shape waist or and made bacon
mobius strips out of bacon would you buy
one yeah what what if it were a thousand
dollars why not yes so business
shapeways
peg the factory of the future so all of
this stuff came out of a printer yeah so
much of what you guys do is sort of a
typical for startups today when it came
to fund raising back in the day you all
were probably met with a lot of
skepticism because it's one thing to
build a marketplace it's another thing
that to sort of use 3d printing modeling
technologies develop to let people
create and share all that stuff out all
that stuff jives with what investors
expect as soon as you also mention hey
we're going to manufacture and ship this
stuff to it stops looking like a
traditional ones and zeros kind of
startup because you're dealing with
stuff now you clearly have great
investors on board now andreessen
horowitz Union Square Ventures how how
did that how do you sell that how did
you convince them to get on board
well you're right what stuff especially
in the beginning and it was even tougher
still because if it was the word
manufacturing maybe I didn't scare them
that much in the beginning but I wasn't
seeing manufacturing I was seeing 3d
printing and people went like what is
that most investors were underwear most
people I mean when I got in touch with
in 2006 with the technology I went like
what is this and I'm pretty tech savvy
there was really really unknown so we
were indeed billing this company and we
were saying well we manufacture the
physical stuff using 3d printers
and you know people just didn't get it
and they saw more risks than rewards
probably so there was a lot of
skepticism until I met Albert at Union
Square Ventures
and he said yo this is great he has a in
his early days I think some some
background in manufacturing so he said
this is great we should do this and one
led to the other and here we are hello
yes hi pleasure thank you very much
rabbit so this is where all the actual
magic happens you guys take random ideas
from people on the internet and make
them into real is it critical yes yes we
really make people's ideas complex so I
got this great idea I want to create a
mobius strip of bacon all right so I 5
I've uploaded the model I'm really proud
of it it's gonna be great now we go to
the first stage of the planning yes we
go to the planning of the machines there
we have a team of engineers they gather
all the models that come on every single
day they double-check them for prints
ability what they do is they basically
have a 3d version of the inside of the
printer and they try to put as many
products as they can try to fit it in
one to in one print build and this is a
human digitally packing all these 3d
objects it's a film an extra combination
of a couple of smarter algorithms and
quite a few smart people and this is
like the ultimate Tetris game we have a
big community in Europe also because we
started there I mean the Dutch community
is strong but we start you know we
already had lots of customers in United
States one of the reasons we had our
main office here and we wondered it
doesn't make sense to make stuff in
Europe and then ship at the United
States right if we can build and
manufacture and actually have a factory
in an oven what everybody thinks is
crazy because everything left there you
are not build a factory here in New York
to have a factory close to the main
office of course makes sense because
then you know everybody can work
together and learn faster so we started
to look around and
you know we saw a lot of old factories
that were empty and not used for a long
time and then we found this this great
place in Long Island City
that was perfect for us not too large
not too small reasonable rent and you
know we said let's do it oh boy
so this is where the actual magic
happens
the real shapeways magic we got a whole
set of printers here lined up on a hook
yes you can have a look it's okay I know
that my parents used to tell me not to
stare directly into the microwave which
I think was just hogwash but they were
paranoid and scared of microwave all
right so this is in the middle of a
build right now yes and presumably like
if I sat here long enough I would see my
hypothetical bacon strip mobius being
created right before my eyes yes yes
this is this is baby leave is a very hot
oven and then he's plastic just below
the melting temperature and at the
moment that the laser shines faucet tray
across a platform it centers the pieces
of the plastic together so it basically
does it layer by layer by layers and
about 24 hours later you have a
completely
ready prints this is a 24/7 operation
it's easy for me to think about you know
having a 24/7 business when it's just a
website you know the website goes down
you know it's a pain you have to solve
it but it's not like a giant machine
with stuff how do you think about
running a business that is as digital as
it is physical I really like it
personally I mean this is why I'm part
of Shapeways it's just really great to
be able to make something that people
like physically will hold in their hands
and especially what if it's their own
creation what they've made and you know
from a business perspective it brings a
whole lot of interesting challenges and
exciting things that you can do I mean
we were building a factory here I mean
what more fun can you have I feel like
everyone in 3d printing in that industry
is living like five years in the future
you almost kind of have to because you
have to believe in a vision that hasn't
yet arrived but seems imminent I mean to
some extent every founder does but I
feel like especially 3d printing you
know when you started this business only
a few years ago what was the most
impressive if you understand where I'm
coming from like impressive thing that
could be printed and what is it today
and then what do you expect it to be two
or three more years from now it's less
what the machines can do because what
the machines can do today is not wildly
different from what they could do five
years ago yeah but it's what people can
come up with the first things that we
saw were really basic shapes and we need
to get our heads around what is possible
with 3d printing more than that the
technology is holding us back sure there
are lots of limitations I mean I'm not
going to say it's it's perfect yet but
if you're a designer especially you're a
product designer what you get taught in
schools is what people tell me is that
you need to design for manufacturing
regular manufacturing mass manufacturing
has a lot of limitations you need to
think about a lot of things and quite a
few of those limitations do not apply
for 3d printing but since if you're
trained to think about those limitations
all the time you don't like to break
those rules and that's actually what's
happening now people start to realize oh
wait a minute all the things that I
couldn't do I can
and I think that is where you know
complexity of the things the daring of
our designers of our community is
growing and growing and growing and
sometimes that drives us mad because
they come up with things that are so on
the edge of what the machines can do but
it's I think still a lot of stuff that
you can do conceptually with 3d printing
is not done yet when you were a kid and
you were in elementary school and you
were asked to write a letter to like
yourself as an adult talking about what
you wanted to be when you grew up
was it designing cufflinks as one of the
most successful businesses powered by
Shapeways absolutely not because if it
was that would be awesome I would be so
precious so cool though we are so how
definitely unintentional so how did this
happen started as friends going out for
drinks but then quickly realized we all
had this shared frustration of just like
so much crap in the world so much stuff
that was not good quality it's so many
things that were so disposable we're
like we don't want that we we thought
back to you know the times were like you
had an item you had a product to go had
a piece that then you would give to your
son they would pass along in these like
elements of family heirlooms and we kind
of just had this strong urge that like
those pieces were like disappearing
somehow that's where like Shapeways was
snug right there we're like oh wait we
can just do this and upload something
and have something on our hands and for
weeks
sure let's do it so honestly we had
three products put it up on a Shopify
site luckily got picked up by Swiss Miss
wired and gadget Gizmodo and then a slew
of orders came in and then we were a
company instantly
I love this notion of all these artists
and designers who are doing things
without permission just creating not
long after I think the release of the
original iPad you all had designers
manufacturing cases within days yeah is
that right yeah presumably you know they
didn't go to Apple for permission for
this they were just making useful cases
for these devices on Shapeways I think
what's on a Friday in April somewhere
and on Monday we saw an iPad case pop up
on shapeways this guy bought the thing
measured it four days later he had us
design ready for a back cover of an iPad
in four days you go from an idea to a
product that you can sell as an
individual that is almost impossible
without a platform like Champlain's we
like to say it's our playground for
ideas
it's our little sandbox where we kind of
sketch around to do the things we like
of making new things and testing them
out and we still all have our day jobs
realize this is just great the costs
have just completely collapsed and and
then also it's really freeing because of
that like as a designer and as a creator
you're like you're not sitting here and
having that check of like oh I made this
thing but I don't think it's gonna sell
it's like it doesn't really matter so if
anyone's out there just truly just go
and learn to write just go ahead and go
for it and the tools are out there the
education is out there is so many
tutorials different things like that so
many like so much information out there
that's really just about like your time
and energy and learning the tools and
then just committing to it what do you
say to skeptics what do you say to
people who look at that and just say
this is an important user trinkets these
are just little things like their toys
what do you say to them you know if you
think about the fact that we see more
and more people printing their
engagement rings or their their wedding
rings in shape ways and making them and
designing them themselves I don't think
those things are trinkets to those
people they're really important things
they're really important in their lives
and the first time I heard it I was like
blown away you're doing this on
Shapeways you got to be kidding you're
not going to a jeweler and then I
realized what hang on this is such a
personal event in someone's life buying
something that someone else can also buy
isn't good enough for them they want to
make something they want to design
something and then give it away that is
truly personal to them and they can
unleash their own creativity so then I
understood but so that's not trinkets by
a long shot
what happens here is when you have a
tray we take them out of the printer
this is how it comes out of the printer
and we've all done it this morning
already so unfortunately I cannot show
you the actual I the actual thing
getting it out of the sand but basically
the tray is cooled down in order by
order and we put a big tray we put it on
here then the platform Rises and then
basically the outside box
disappears and the white cake comes out
on top of it so it looks like Han Solo
frozen in the Carbonite yeah yeah and
then basically we just really gently we
know where each mole is we start digging
it away after the breakout station and
all the moles are clean they actually
come here we put them on these racks and
in the early afternoon like one tray
offs another comes in here and then
basically we sort it here it's clearly a
very important human process to a lot of
this to make sure quality control is so
high and make sure everyone gets what
they are expecting again yeah hello oh
yeah I like this like some great nice to
meet you good
so welcome seeing the KL end of the
process so you get a bin this is the UPS
label packing slip swag which you're
familiar with and the product itself Oh
a dwarven battle-ax yeah I don't know
the damage per second on it but we can
find out later though I'm gonna be sort
of hands off with this one um the first
thing you do should take the UPS label
put it you put it aligned with there you
go things go flip you flip the box hello
okay take a right and then and then
you're basically going to assemble half
a box
watch it you shout it is all right sorry
upside down right here yeah perfect
right there
Shazam Shazam so personally what the
customers see is this yes can I can I
write lose you in right yeah what's the
GPS watch small empires they're right
because I want to write soon Wow so for
somebody's watching the show and it's
thinking I want this job I want to do
this what you know and let's say they
are god let's either in the massive
company that doesn't have any kind of
incubation program or maybe it doesn't
does matter but let's say they are doing
the nine-to-five thing maybe they're
college dude what do you tell them what
do you tell her to end up like you well
I think one of the most important traits
is that you don't listen to the word no
when I started shapeways we had some
pretty big technology challenges if you
upload a file to us how do I know I can
print it right how do I even know it's a
file that a printer would recognize how
big is it what would it cost so I went
around the corner and I asked quite a
few very very smart technology people
can you build me something that helped
me understand whether it is printable
and can help me fix it if it isn't and
what it would cost etc and they said wow
there's that it's really hard it's
actually almost impossible and if we
were to build this I mean this was a big
company and they'd say well this might
cost you 10 to 20 million and maybe
three years ago
nothing cause 10 to 20 million and
nothing takes three years so I didn't
hear that
so I kept looking and I found these
great guys in in Seattle and Alan Hudson
was the shield at a company and he's not
working for us he said I can do this in
three months well yeah that sounds
everything can be done in three months
so you know don't listen to know if you
hear no go somewhere else
open-source software rips down the Bears
to entry for anyone who wants to build a
business using code Shapeways has
leveled the playing field for anyone who
wants to design and make things and it's
all happening right here in this
building in New York City so it can't be
done
can't make a bacon mobius strip can the
bacon Lucas true don't take no for an
answer
that's just what Pete said so I'm gonna
take no for an answer
all right just put this here it's still
beta yeah
but delicious I just need my thousand
dollars now
my work here is done
you
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.