Acquisition growth strategy leads Micro-LAM to Beringea
March 12th 2021
Micro-LAM CEO and founder Dr. Deepak Ravindra, with the Laser-Assisted Systems in Production.
For Micro-LAM CEO and founder Dr. Deepak Ravindra, the growth strategy he set in 2018 for his ultra-precision laser-based technology included vertical integration, growth in consumables and acquisition plans. To execute on his strategy that year, Micro-LAM formed a wholly owned subsidiary in the UK that makes a specific component of its system: the consumable diamond tools. That, in turn, led him to seek an investor with experience supporting companies who are quickly expanding operationally, and he was introduced to Beringea.
“Naturally, when you start a new subsidiary or acquire a related entity, your business you will need significant cash on hand to execute the strategic plan. We filled our Series B funding round with existing investors very quickly, but the team at Beringea believed in our growth strategy and had experience guiding businesses through an acquisition,” Ravindra reflected. “There are many ways to fund a business, but we wanted to make sure we brought in a new partner who had the expertise to help us grow the company the way we envisioned. Beringea was that type of investor for us.” In 2019, Beringea participated in the $5.5 million Series B round and joined the Micro-LAM board of directors.
Soon after, Ravindra found an acquisition target in the high-precision optics manufacturing segment of the market offering strong, synergistic potential with Micro-LAM’s proprietary ultra-precision machining. Then, in 2020, Ravindra faced a new challenge when the COVID-19 pandemic froze customers’ capital expenditure budgets. The company could have sat on its cash, but Ravindra chose to pursue building capabilities on other synergistic platforms, and so far, he says, “that’s been the right decision.”
Over the next three years, Ravindra plans to make all three divisions perfectly in-synch and profitable, fully maximizing the individual value of each piece. “We can now provide a turn-key solution to our customers—equipment, tooling process, and expert support. That is very valuable, to sell a total system and not just a widget, and it’s a mindset that Beringea supports,” he says.
Micro-LAM, Inc. offers state of the art cutting technologies through a retrofittable system that equips precision machines with a hybrid laser-diamond cutting system. This system is used to efficiently machine materials that are difficult to cut, such as ceramics, silicon, glass and hard metals, thus creating extremely high-quality optics and precision components. Founded in 2012, the company has won numerous innovation awards and expanded its manufacturing facility in 2017. Learn more at www.micro-lam.com