3D PRINTING The Education Sector is on the Cusp of Adoption

March 21, 2015

3D printing is a technology that could be worth $21 billion by

2020. Hobbyists and the medical and retailing sectors have

already embraced 3D printing’s potential. But due to a lack of

teacher training and educational content, the educational sector

has hesitated to implement 3D printing as a science, technology,

education, art, math (STEAM) tool. We believe this is about to

change as a select group of 3D printing companies focus on

developing STEAM based content to complement their printers

(which we believe will become commoditized over the

upcoming years).

Investors seeking a 3D printing pure play in the education

technology (Ed Tech) space should consider Tinkerine Studios,

a Sophic Capital client. Not only does Tinkerine provide high

performance, award winning desktop printers and intuitive

software, but they will also offer 3D printing STEAM-based

content through Tinkerine U, the company’s online training

platform and peer-to-peer marketplace. Online learning and

training is an expanding market that research firm Global

Industry Analysts1 expected to reach $107 billion during 2014.

Sean Peasgood, President & CEO

Marcel Valentin, Vice President

www.SophicCapital.com

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Introduction

Recall the wrench that NASA 3D printed in

space? This wrench brought 3D printing to the

forefront of many investors’ minds that the

industry was real. Wohlers Associates

estimatesi that additive manufacturing (AM)

could be a $21 billion market by 2020.

As we detail later in this report, NASA

continues to experiment with 3D printers,

including those used by Tinkerine Studios

(TSXV:TTD), a Sophic Capital client. We

believe that this combination of platform and

content makes Tinkerine an attractive

acquisition target in an industry that has

undergone consolidation over the past 18

months, led by the largest 3D printing

companies.

What’s this 3D Printing Stuff?

Three dimensional (3D) printing is an additive manufacturing (AM) process that is the

opposite of how carpenters and machinists work with materials. Carpentry and machining are

subtractive manufacturing trades where materials are removed to make a finished product. For

example, a carpenter sandpapers a piece of oak to make it smooth; a machinist shaves curls from a

spinning metal bar to create a drive shaft. Both of these examples involve removing base materials.

3D printing involves starting with nothing and adding base materials to form the finished

product. A 3D printer reads a file containing instructions on how to deposit layer upon layer of

material to produce the desired form.

Opportunities abound in the health and

retailing sectors. A health care practitioner can

manufacture patient-specific prosthetics right

within her office. Surgeons can build models to

practice upon before the patient enters the

operating theater. Retailers can print samples of

new products and use them to gauge market

reaction prior to investing in a full-scale,

traditional manufacturing run.

Model to practice brain tumour removal Source: 3DPrinter.net

A NASA wrench 3D printed in space. Source: NASA

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We believe 3D printing is about to gain mass adoption in the education sector. This virtually

untapped market is gaining traction amongst early adopters in our schools. The goals are not only

to create on-demand teaching aids but also to teach students computer skills in an interactive and

engaging manner. However many teachers don’t understand 3D printing; nor do they want to create

curricula. But as we detail later in this report, Tinkerine Studios, a Sophic Capital client, is focusing

on the education sector with a strategy to mitigate teacher resistance to 3D printing.

3D Printing – A Layered History

On March 11, 1986, the United States Patent

and Trademark Office (USPTO) granted

Charles Hull, the founder of 3D Systems,

patent 4,575,330 for an “apparatus for

production of three-dimensional objects by

stereolithography.” Stereolithography, or SLA,

involves using a laser to project an object’s

cross-sections across pool of resin. The laser

cures the resin then repeats the process with the

next cross-sectional layer. The process is quick

and produces smooth surfaces but requires a

final cleaning and curing. Plus, objects with

heavy overhanging parts may need supports to

prevent the plastic from collapsing upon itself.

On June 9, 1992, the USPTO published patent

5,121,329 for an “apparatus and method for

creating three-dimensional objects.” The

USPTO granted the patent to Stratasys founder

Scott Crump for a technology called fused

deposition modeling (FDM). FDM deposits

layers of heated plastic filament to build an

object – no resin required. The patent expired in

2009 and became open source (anyone could use

it without paying royalties). New companies

such as MakerBot and Ultimaker cropped up and

began selling 3D FDM printers.

Although FDM is open source technology, it has limitations. FDM cannot print some large,

intricate designs; overhanging parts perpendicular to the build axis may need supports or may not

be viable to manufacture; since FDM printers lay beads of hot plastic the way a glue gun lays hot

glue, the finished product’s surface is not as smooth as the SLA process; FDM and SLA are slow.

The benefit against these potential FDM pitfalls is an inexpensive printed object.

Selective laser sintering (SLS) to the rescue. Like SLA, SLS uses a laser. But rather than create

an object’s cross-sections in a pool of resin, SLS spreads powder and fuses it with laser light. Once

Part of patent 4,573,330 application

Source: Google

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the powder has cured, a new layer of powder is added and then cured by the laser. The advantages

of SLS are that it can use any powder that melts (including glass and metal), objects are flexible,

and SLS is faster. However, SLS surfaces are porous and rough. In addition, the complexity of the

process can generate more errors compared to SLA.

U.S. patent 5,597,589 covers the sintering process but expired January 28, 2014. This led to

speculation that the 3D printing industry should see numerous competitors enter the market similar

to when the FDM patent became open source. However, this is not the case. The commercial SLS

printer market has grown but the consumer market hasn’t developed. Even 3D Systems, the owner

of the patent, doesn’t have a consumer SLS printer.

So what’s holding back the development of consumer SLS printers? There are numerous

reasons. First, there are many related patents surrounding SLS. Creating SLS printers that skirt the

patents’ claims may not be feasible and could be costly should the patent holders claim

infringement and take the SLS designers to court. Second, SLS involves powders, and therefore

proper ventilation and post-production handling are important. Third, SLS lasers are more powerful

than those used in SLA printers. SLS lasers are capable of melting metal powders, and we’re not

sure hobbyists and their insurance companies want blobs of 1,668ºC titanium burning down

garages. However, this doesn’t mean that companies aren’t trying (to develop a consumer SLS

printer and not burn down garages, that is). U.K. company Norge had a Kickstarter campaign to

bring SLS printing to the masses by creating a £4,166 model for the market (unfortunately, they

did not meet their target). That raises another issue: price. We believe that prices need to fall below

$3,000 to $5,000 to spur consumer adoption of SLS printers. However, we believe that SLS may

not be able to reach this range of price points in the near- or midterm.

Market Forecast

Although independent research firms have diverging market forecasts (Exhibit 1), one cannot

doubt that 3D printing is a growth market in its infancy (Exhibit 2). There are a range of

theories fueling this growth: The drive from hobbyist to manufacturing; the availability of metal

and alloy printers, bioprinting (the recreation of tissues and organs), growth in Asia Pacific,

increased content, and hardware price declines. We can’t dispute any of these reasons for growth.

We would add that there was a catalyst that spurred the adoption of FDM and SLA 3D printing and

could drive growth: the expiration of key patents. As more patents expire (Exhibit 3), we believe

more 3D printing products will appear.

Exhibit 1: 3D Printing Market Forecasts

Source: Company press releases, Sophic Capital

2013 2014E 2015E 2017E 2018E 2020E

AMR $2.3 $8.6 20.6% 2013-2020

Canalys $2.5 $3.8 $16.7 45.7% 2013-2018

CCS Insight $1.2 $4.8 33.0% 2013-2018

Freedonia $5.0

Gartner $1.6 $13.4 103.1% 2015-2018

IBISWorld * $1.4 15.7% 2014-2019

IDC 29.0% 2012-2017

Wohler $3.1 $12.8 $21.0 33.0% 2013-2018

* U.S. market only

RESEARCH

FIRMCAGR CAGR Period

YEAR ($ Billions)

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Exhibit 2: 3D Printing Hype Curve

Source: IDTechEx

Exhibit 3: Key Industry Patents

Source: 3D Printing Industry, Google Patents, Sophic Capital

US Patent #Original Patent

AssigneeExpiry Date Covers

5,569,349 3D Systems 29-Oct-13Apparatus for and related methods of forming three-dimensional objects out of a building material, which is normally solid, but which is

flowable when heated.

5,587,913 Stratsys 13-Dec-13 The method and apparatus of the invention reduces the overall time to produce a shell of the object with a rapid prototyping machine.

5,597,589

Board Of Regents,

The University Of

Texas System

28-Jan-14 An apparatus for selectively sintering a layer of powder to produce a part made from a plurality of sintered layers.

5,609,812 3D Systems 11-Mar-14An improved method for stereolithographically making an object by alternating the order in which similar sets of vectors are exposed over

two or more layers

5,609,813 3D Systems 11-Mar-14An improved method for stereolithographically making an object by alternating the order in which similar sets of vectors are exposed over

two or more layers.

5,610,824 3D Systems 11-Mar-14A stereolithography system employing a more powerful laser and faster dynamic mirrors to speed up part building without sacrificing

accuracy is described, especially large or complex parts.

5,503,785 Stratsys 02-Jun-14Processes and apparatus are disclosed for producing three-dimensional objects having overhanging portions freely suspended in space

without any material of the object in direct, supporting engagement therewith in the final geometry of the object.

5,637,169 3D Systems 10-Jun-14 The method and apparatus of the invention reduces the overall time to produce a shell of the object with a rapid prototyping machine.

5,639,070

Board Of Regents,

The University Of

Texas System

17-Jun-14 A method and apparatus for selectively sintering a layer of powder to produce a part as a plurality of sintered layers.

5,494,618 Alliedsignal 27-Jun-14

Polymer precursor formulations suitable for stereolithography may be prepared from compositions containing vinyl ether functionalized

compounds and epoxy functionalized compounds plus an effective amount of a cationic photoinitiator and an ultraviolet light-absorbing

compound to provide a predetermined depth of cure.

5,651,934 3D Systems 29-Jul-14Apparatus and method for stereolithographically forming a three-dimensional object includes a vessel for holding a building material and a

smoothing member for forming a uniform coating over a previously formed layer of the object.

5,555,176 Bpm Technology 19-Oct-14

An apparatus includes a processor for controlling a build material dispenser and a dispenser positioner to construct a three-dimensional

article in successive layers based upon article defining data, and wherein the processor operates the dispenser to dispense a series of bursts

of build material at a series of respective target positions as the dispenser is advanced along a predetermined path of travel.

5,572,431 Bpm Technology 19-Oct-14A method and apparatus for forming a three-dimensional article includes dispensing build material and thermally normalizing predetermined

portions thereof at predetermined intervals during construction of the article.

5,529,471University of

Southern California03-Feb-15

An additive fabrication apparatus using a fluid construction material which can be solidified, and including a fluid material extrusion assembly

including trowels defining first and second surfaces, a first nozzle for delivering fluid material to a predetermined location, a first control for

moving the extrusion assembly along a predetermined path defining an enclosed area, a first supply for delivering fluid material to the

extrusion assembly to extrude the material from the first nozzle in a layer as the first nozzle is moved along the path, with the first and second

surfaces moving with the first nozzle to produce a wall of the extruded material forming the enclosed area with a shaped outer surface and a

shaped top surface, a second nozzle for delivering fluid material to the enclosed area, a second control for moving the second nozzle to

position the second nozzle at the enclosed area, and a second supply for delivering fluid material to the second nozzle to fill in the enclosed

area. A method of additive fabrication, which can be automated.

5,733,497 Dtm Corporation 20-Mar-15 A composite powder specially adapted for use in selective laser sintering is disclosed.

5,762,856 Charles Hull 09-Jun-15

A system for generating three-dimensional objects by creating a cross-sectional pattern of the object to be formed at a selected surface of a

fluid medium capable of altering its physical state in response to appropriate synergistic stimulation by impinging radiation, particle

bombardment or chemical reaction, successive adjacent laminae, representing corresponding successive adjacent cross-sections of the

object, being automatically formed and integrated together to provide a step-wise laminar buildup of the desired object, whereby a three-

dimensional object is formed and drawn from a substantially planar surface of the fluid medium during the forming process.

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Education Technology is Where the Money will be Made

We believe one 3D printing market is poised for rapid growth. As we mentioned before, 3D

printing has gained footholds in the manufacturing, dental, and medical industries. In fact, the sweet

spot for manufacturers appears to be prototyping and producing low-volume, highly specialized,

one-off products (Exhibit 4); products that would require expensive tooling and moulds for plastic

injection systems, for example. However, medical and dental sectors are not our markets of interest.

Education is attracting more capital market inflows. Research firm CB Insightsii estimates that

in 2014 Ed Tech collected about $1.87 billion across 350 deals. Looking at Exhibit 5, 2014 deal

sizes were larger than those in 2013. And 2015 funding is off to a nice start with the $186 million

that Ed Tech company Lynda.com raised in January.

Exhibit 4: Manufacturers more likely to use 3D printing for low-volume, specialized products

Source: PwC

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Exhibit 5: Total Annual Value of Ed Tech Deals Continues to Ramp

Source: CB Insights

Education - 3D Printing Engages Students

Teachers are constantly concerned about how to engage students. In the days of pencil and

paper, students who didn’t engage lessons doodled, read books, or dipped pigtails in their inkwells.

Some teachers would command the students to pay attention, stand a bored kid in the corner, or, as

the author recalls from personal experience, get a hard whack on the back of the head (trust me;

this worked). Technologies such as desktop computers, video, and tablets brought some of these

withdrawn students back into the lessons, but the reality is that not all students will participate. This

doesn’t stop many dedicated teachers and school boards from investigating new ideas to get the

students to invest themselves in their education.

Project-based learning is an educational trend. Its appeal to students is interactivity. Its appeal

to teachers is that real-world experiences teach students to confront, challenge, and solve problems.

An added benefit is that group projects, teach students the value of team-work, a real marketable

skill that they’ll need in their careers.

A decade-long “trend”: STEM education. Although STEM (science, technology, engineering,

math) learning teaches students problem solving and creativity skills, many people don’t realize

the impact that these fields have on the greater workforce. Almost 75%iii of those in the United

States who have earned bachelor STEM degrees work in other fields. So similar to how reading

and writing were necessary for landing a good job 50 years ago, STEM skills are imperative today.

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3D printed, STEM-based projects engage students. With 3D printing STEM assignments,

students learn to solve problems, computer-aided design, and how to test theories via the objects

they create. Rather than read about

automotive aerodynamics, students can

design model cars, print them, and test

them. Rather than look at a picture of a

fractal image, students can design

formulas that replicate the image, print

it out, and study the fractal in their

palms. Rather than dissect a real frog,

squeamish students can print a plastic

frog, take it apart, and piece it together.

Theoretically, 3D printing STEM-based

projects are only limited by the teachers’

and students’ imaginations. In reality,

they are limited by available content,

and many teachers are unwilling or

unable to develop their own.

Not So Fast – Not All

Teachers are Eager for Change

As shown in Exhibit 2, 3D printing in the education sector is climbing the hype curve toward

the peak of inflated expectations. We agree with this for several reasons. First, like the rest of the

population, the majority of all teachers aren’t early adopters of technology. Most understand neither

3D printing nor how to use it. Second, even for those early adopter teachers, little content exists to

develop curricula. That means teachers have to create content themselves, which is difficult when

the majority of teachers don’t understand the technology. Third, there are teachers who flat out

refuse to learn a new technology. According to Martin Stevens iv CEO of It Is 3D, a 3D technology

company for education in the U.K., “…you have 20% at the other end of the curve, who say ‘I’m

going to be retiring in the next fifteen years, I don’t have time to learn this’.”

Governments Want to Help Teachers and Students

In late 2013, the U.K. government allocated £500,000 to help 60 teaching schools purchase 3D

printers. The funds were not only for purchasing hardware but also training teachers to use the

technology. Education Secretary Michael Govev stated, "3D printers are revolutionising

manufacturing, and it is vital that we start teaching the theory and practice in our schools.

Teaching schools will be able to develop and spread effective methods to do this. Combined with

our introduction of a computer science curriculum and teacher training, this will help our schools

give pupils valuable skills.”

The government of Australia’s Victoria state has a similar initiative to that in the U.K. The

Victorian government formed Quantum Victoriavi, a science and math innovation center that trains

teachers how to build 3D printers and how to incorporate the machines into curricula.

3D Printer Frog Dissection Kit Source: MakerBot Thingiverse

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Japan won’t leave its students behind. The government subsidizes two thirds of the cost of 3D

printers in universities and technical schools in order to help to foster R&Dvii. Currently the budget

for this initiative is about $2 million.

In April 2014, the South Korean government revealed plans to invest about $2.3 million with

the goal of creating 3D printing centers to train small and medium sized business employees. Then, in June 2014, the South Korean government created the 3D Printing Industry Development

Council which has set a goal to train 10 million people by 2020. To facilitate this latter initiative,

the government will provide 3D printers to 5,885 schools and 227 libraries by 2017viii.

Although the United States leads the 3D printing market, government funding is lacking to

place the technology in schools. The private sector, however, is filling the void. MakerBot has an

initiative to help the public donate to 3D projects. The company’s broader goal is to have a 3D

printer installed in every school and unveiled Starter Lab to help get 3D printing up and running

within schools and organizations. And to further support educators, Airwolf 3D taught a group of

Orange County, California teachers how to build a 3D printer.

3D Printer Companies Want to Help Teachers and Students

3D printer companies understand the challenges faced by teachers wary of new technologies.

We highlight some of the companies that are helping to place 3D printers in schools and develop

curricula for teachers. These companies are focused on a niche market (education) that we believe

is about to explode.

MakerBot, a division of Stratasys (NASDAQ:SSYS), has an ambitious goal of placing a 3D

printer in every American school. MakerBot was the first mover company that exploited the

FDM open source patents. It did such a good job that Stratasys bought MakerBot in June 2013 for

4.76 million shares (~$403 million) plus an earn out of 2.38 million shares (~$201 million). To

facilitate its 3D printer in every school goal, MakerBot created MakerBot Academy. MakerBot

Academy has partnered with DonorsChoose.org to help teachers crowd-fund projects requiring 3D

printers. It also has created projects via Thingiverse. More important, for teachers and students, is

that in December 2014 Stratasys released a free, 14-week, modular, 3D printing curriculum.

3D Systems (NYSE:DDD) is about 3D printing for everyone. A 3D printing pioneer, 3D Systems

holds over 1,200 patents and also invented SLA and SLS. The company has an initiative called

Make.Digital which aims to build an ecosystem of 3D printers, scanners, software, curriculum,

partners, and support for the educational institutions. Its 3D printers are priced from $1,000 up to

almost $1 millionix for the high-end manufacturing and healthcare markets.

3D Systems family of 3D printers

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it is 3D (yes, “it” is lower case) supplies affordable yet high-quality 3D digital technologies to

the education and industrial sectors. Formerly known as A1 Technologies, this U.K. company

offers a range of 3D design printing, scanning, and machining products and even has a 3D media

player to engage students during classroom lectures.

Afinia is a subsidiary of media duplication company Microboards Technology. Founded in

2009, Afinia has a $1,299 printer targeting educators, engineers, and hobbyists. Although Afinia

does not have 3D printing projects or curricula for teachers, it offers a booklet about educator

success stories.

LeapFrog (NYSE:LF) not only provides 3D printers but also pre-packaged projects for both

the primary and high school markets. Dutch-based LeapFrog was founded in 2012 by AV

Flexlogic due to a need to create prototypes and inexpensive replacement parts. LeapFrog also

focuses on the engineering, architecture, medical, retail, and art sectors.

Ultimaker is another Dutch-based company and has shipped 3D printers since May 2011.

During September 2014, Ultimaker expanded its operations into the United States to decrease

manufacturing and shipping costs and improve customer service in this market. The company

appears to be targeting the consumer desktop market but not specifically the education sector. When

PC magazinex tested the Ultimaker 2, it noted that “it's a breeze to set up and is the only 3D printer

we've tested that operated without a single hitch.”

Solidoodle’s Press is a no-frills 3D printer that sells for $499. If that caught your attention,

consider that Solidoodle’s 3 model has a sticker price of $399. In fact, the most expensive of the

company’s five models is $1,199. Solidoodle has started an educational initiative called Solidoodle

U which provides tutorials and projects for teachers.

Tinkerine – Focused on the Underserved Education Market

Tinkerine Studios, a Sophic Capital client, is the only public North American pure-play in

consumer desktop 3D printing. The company is focusing not only on the consumer desktop space

but also on the massively underserved education market - specifically, online learning and training,

a market expected to hit $107 billion this year according to market research firm Global Industry

Analystsxi. In an effort

to provide educators,

students, consumers,

and technicians with

the necessary 3D

printing tools (printers

& STEAM content)

and the support that

they need in the

classroom or

workplace, the

Company launched

Tinkerine U on March

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12, 2015 following a successful global pilot with educators (Tinkerine U was preceded by an Apple

iPad app). In a world where “content is king” (think television, blogs, streaming music), we

believe Tinkerine U has a competitive advantage with its peer-to-peer Apple iTunes store-like

architecture. And as an incentive, most Tinkerine U content is free.

As Tinkerine executes on its pipeline of opportunities, one of the largest education content

providers has noticed them. Pearson, a world leader in educational content and technology,

selected Tinkerine to present 3D printing on Teachability.com, Pearson’s online community of

education professionals. We believe that this validates that Tinkerine is a contender in the

burgeoning Ed Tech markets. You can access the interview here.

What differentiates Tinkerine 3D

printers? Reliability. Tinkerine’s

hardware is solid – its Ditto™Pro,

the third generation printer, received

high praise from MAKE: magazinexii,

the leading 3D printing publication.

Tinkerine is developing educational

content to reduce teacher reluctance

toward implementing 3D printers

within the classroom.

Don’t take our word for it though;

this is what NASA’s Jet Propulsion Laboratory (JPL) had to say about piloting Tinkerine’s

Ditto™Pro:

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“A successful prototype. Valued the entire experience.” Gabriel Rangel

NASA JPL

NASA’s Jet Propulsion Laboratory (JPL) is also a customer. NASA has been involved in AM

since the 1990s and has experimented with metals and plastics.xiii NASA has a plan to push desktop

3D printing since the technology facilitates problem solving and innovation at lower costs.

Tinkerine has sold small quantities into JPL, and NASA JPL has taken the Ditto™Pro to events, as

shown below (the Ditto™Pro is in the bottom left picture).

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The Largest Companies are Consolidating the Industry

Exhibit 6 shows that the largest 3D printing companies are snapping up smaller competitors.

We expect consolidation to continue as more 3D printing companies enter the industry (3D printers

are popular crowdfunding projects). More competition will drive down hardware prices which we

believe will make assets of some companies attractive. But as we stated before, we believe the

biggest differentiator in the education space will be content, since teachers don’t want to develop

content.

Consolidation could accelerate in the educational content sector. Lynda.com, an online learning

tool provider, raised $186 million in January 2015 that, according to research firm CB Insightsxiv,

represented the largest education-technology financing in at least the past five years. Lynda.com’s

CEO, Eric Robinson stated, “It’s an opportunity for us to continue to strengthen our balance sheet

and continue to do acquisitions in this segment.” xv

Exhibit 6: The Large 3D Printing Companies are in Acquisition Mode

Source: Company press releases, Sophic Capital

Consumables – Another Differentiator

We believe that another differentiator, both now and in the future, is consumables. The

industry typically uses two types of plastics: PLA and ABS. The primary differences between the

two is that PLA is more brittle than ABS whereas ABS shrinks more while cooling thus

necessitating a temperature-controlled environment. PLA is also a corn sugar-based plastic whereas

ABS is a petroleum-based plastic. This means that PLA does not emit off gas fumes that smell like

plastic – an important consideration for non-industrial environments such as schools, homes, and

offices.

One major technical challenge faced by 3D printers is regulating the printer’s nozzle

temperature. Regardless of what plastic the 3D printer consumes, the material must have a

consistent composition, and the nozzle must maintain a constant temperature to melt the plastic.

Scrap plastics compose some third-party “discounted” consumables. This raises the issue of

different melting temperatures for the different scrap pieces in the consumable’s composition. This

inconsistency can cause nozzles to clog and 3D prints to fail. Therefore, 3D printing companies

that provide quality consumables can differentiate themselves within the industry.

D Aquirer Target Value

Jan. 5, 2015 3D Systems BotObjects N/A

Nov. 24, 2014 3D Systems Cimatron $97 million

Nov. 15, 2014 MakerBot Layer by Layer N/A

Sep. 17, 2014 Stratasys GrabCAD est. $100 million

Apr. 30, 2014 3D Systems Robtec N/A

Apr. 6, 2014 Stratasys Interfacial Solutions N/A

Apr. 2, 2014 3D Systems Medical Modeling N/A

Jun. 19, 2013 Stratasys MakerBot $403 million + $201 million for earn outs

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Conclusions

We believe the education industry is about to embrace 3D printing, an industry that could

grow across all sectors from $1.4 billion in 2013 to $21 billion by 2020. Hobbyists and the

medical and retailing sectors have recognized 3D printing’s potential, but lack of teacher training

and curricula content has hindered adoption in the education sector. However, 3D printing

companies are mitigating teacher concerns. Combined, this focus on educational content and the

support from several national governments could drive widespread adoption of 3D printing in

schools, universities, and libraries.

Investors seeking opportunities in the 3D printing educational market should consider

Tinkerine Studios, a Sophic Capital client.

A once-shuttered warehouse is now a state-of-the art

lab where new workers are mastering the 3-D

printing that has the potential to revolutionize the

way we make almost everything… And I ask this

Congress to help create a network of 15 of these hubs

and guarantee that the next revolution in

manufacturing is made in America.”

President Barack Obama

2013 State of Union Address

National Portrait Gallery Bust of President Obama made from a 3D printer Source: Smithsonian.com

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Acronyms Used in this Report

3D three dimensional

AM additive manufacturing

FDM fused deposition modeling

JPL Jet Propulsion Laboratory

MOU memorandum of understanding

SLA stereolithography

SLS selective laser sintering

STEAM science, technology, engineering, arts, math

STEM science, technology, engineering, math

USPTO United States Patent and Trademark Office

References

i 3D Printing and Additive Manufacturing Industry Expected to Quadruple in Size in Four Years, Wohlers

Associates, Inc., August 19, 2014 ii Ed Tech Funding Hits $1.87 Billion in 2014, CB Insights, January 20, 2015 iii Wesley Robinson, Most with college STEM degrees go to work in other fields, survey finds, The

Washington Post, July 10, 2014 iv Meritxell Garcia Sein-Echaluce, 3D Printers Coming to Every School In the UK – Education Insights

with Martin Stevens, CEO ‘It Is 3D’, 3DPrint.com, August 30, 2014 v www.3Ders.org, UK grants £500K funds to bring 3D printers to 60 schools, October 19, 2013 vi Ian Burrows, 3D printing aims to revolutionise Australian schools, manufacturing, November 7, 2013 vii Jelmer Luimstra, Japanese Government to Invest in 3D Printing Education, 3D Printing.com, February 5,

2014 viii www.3Ders.org, South Korea drawing up a 10-year plan for 3D printing, July 16, 2014 ix 3D Systems, Manufacturing the Future, May 20, 2014, pg. 5. x Tony Hoffmann, Ultimaker 2, PCMag.com, June 24, 2014 xi Global E-Learning Market to Reach US$107 Billion by 2015, According to New Report by Global

Industry Analysts, Inc., PRWeb, February 15, 2015 xii PR Newswire, Tinkerine's DittoPro 3D Printer Awarded For Overall Performance By MAKE Magazine,

November 12, 2014 xiii 3-D Printing xiv Eric Newcomer, Lynda.com Raises $186 Million in Funding Led by TPG Capital, Bloomberg, January

14, 2015 xv Ibid.

3D Printing

Sean Peasgood, www.SophicCapital.com March 21, 2015 - 16

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