PanOptimization Chose Customers Over Venture Capital. It Is Working.

The Story Most AM Software Companies Tell

The standard AM software company narrative goes like this: build a platform, raise a Series A, expand internationally, hire aggressively, and optimise for investor returns. It is a well-rehearsed script. PanOptimization skipped most of it.

Founders Pan Michaleris and Erik Denlinger sat down for the latest Additive Insight podcast and explained why. The short version: they watched enough software companies raise capital, hire fast, and spend years searching for product-market fit to decide that path was not for them.

What PanX Actually Does

PanOptimization's PanX platform sits in the process simulation layer of the AM stack. Before you print a geometrically complex metal part, PanX simulates the thermal history, residual stress, and distortion that will develop during the build. That information lets you adjust support structures, scan strategies, or part orientation before committing material and machine time to a physical run.

The value proposition is straightforward: fewer failed builds, less wasted powder, and a higher first-time-right rate. For companies printing expensive Inconel or titanium parts on hundred-thousand-dollar machines, that is not a nice-to-have. It is a direct cost saving.

Why No VC Money

Michaleris and Denlinger argue that venture capital creates pressure to grow in ways that do not necessarily serve the customer. The typical VC model rewards rapid top-line expansion, which often pushes software companies to add features, enter new markets, or sign enterprise deals before the product is mature. PanOptimization chose to grow through customer relationships instead.

That approach has its own constraints: growth is slower and capital is limited. But it also means every product decision is filtered through a single question: does this help the customer running simulations on real parts? The answer to that question does not always align with what looks good in a pitch deck.

Where PanX Is Headed

The company has been working with both end users and AM OEMs in recent years, adding simulation capabilities that integrate directly into machine workflows rather than sitting as a standalone tool. The direction is sensible: the best simulation software is the one engineers actually use, and lowering the barrier to integration is how you get there.

The broader lesson from the PanOptimization story is that bootstrapping in AM software is still viable. The market for process simulation is growing as more manufacturers move from prototyping AM to production. That gives a focused, customer-funded company a real runway without needing to answer to outside investors.