Divergent Technologies, a manufacturing technology company based in Torrance, recently closed a $60 million venture-loan facility and a $20 million revolving line of credit — facilities that come about three months after the company raised $160 million in Series C funding.
The $60 million venture loan was led by Horizon Technology Finance Corp. Bridge Bank, a division of Western Alliance Bank, provided the $20 million revolving line of credit to Divergent.
“We are pleased to receive support from Horizon and Bridge Bank as we continue to revolutionize complex industrial manufacturing, initially with automobiles and over time with aerospace and defense,” Kevin Czinger, lead inventor, founder and chief executive of Divergent, said in a statement. Czinger is also the founder and chief executive of Czinger Vehicles, a hypercar manufacturer.
Horizon, based in Connecticut, funded $15 million of the initial draw from the venture loan facility, while a private investment vehicle managed by Horizon Technology Finance Management funded $5 million. Under the terms of the agreement, the loan facility will provide up to an additional $40 million of funding to Divergent if certain milestones are met.
Horizon provides capital to venture capital-backed companies through secured loans. Its portfolio revolves around the life science, technology, health care and sustainability industries.
Divergent will use the line of credit received from Bridge Bank for growth and as working capital.
The company has primarily attracted investors and partners with its Divergent Adaptive Production System (DAPS), which automates design processes and uses 3-D printing to assemble complex vehicle pieces. It was most notably used in the construction of Czinger Vehicles’ 21C, a tandem-seat hypercar, which starts at $2 million. Divergent has touted the system’s cost-effectiveness and environmental friendliness compared to static manufacturing systems.
“With over 500 patent filings, DAPS is a cutting-edge approach that enables Divergent customers to create new product models much more quickly and efficiently. We are excited to support Divergent’s growth and expansion,” Gerald A. Michaud, president of Horizon, said in a statement.
Mike Lederman, senior managing director in Bridge’s technology banking group, added that his company is excited to see the Divergent’s tech address system-level challenges.