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From Idea to Market. How to build a hardware startup

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We are on the verge of hardware revolution. In this slideshare we share our journey from idea to the market, talk about how hardware is different from software, enablers of hardware revolution, stages of hardware development, prototyping, crowdfunding and manufacturing.

Published in: Technology

From Idea to Market. How to build a hardware startup

  1. 1. THE WORLD IS OURS TO MAKE FROM IDEA TO MARKET. HOW TO BUILD A HARDWARE STARTUP Agnieszka Nazaruk @agaonfire
  2. 2. What do these have in common?
  3. 3. Just a few years back, they would have taken a corporate empire to design, build and market these products + a looooot of cash... Thankfully you don’t need that in 2015...
  4. 4. The difference between a project and a product is the difference between making one and making many
  5. 5. 6 The 3rd Industrial Revolution IS UPON US! 01 RAPID PROTOTYPING AND SMALL BATCH MANUFACTURING 03 GROWING HARDWARE ECOSYSTEM 02 CROWDFUNDING AND MORE VC FUNDING 04 ONLINE COMMUNITY 05 AFFORDABLE SUPPLY CHAIN
  6. 6. „Hardware is the new software” Erick Schonfeld
  7. 7. 01RAPID PROTOTYPING AND SMALL BATCH MANUFACTURING IS EASIER THAN EVER
  8. 8. 02 RISE OF CROWDFUNDING AND INCREASED HARDWRE FUNDING $529 million pledged towards successfully funded projects on Kickstarter in 2014.
  9. 9. 03 HARDWARE ECOSYSTEM IS GROWING
  10. 10. 04 SUPPLY CHAIN IS BETTER, CHEAPER, FASTER AND EASILY SCALABLE
  11. 11. 05 ONLINE COMMUNITY
  12. 12. Welcome to The NEW, Programmable World of HARDWARE!
  13. 13. www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. 14 YOUR HARDWARE ROADMAP FUND SHIPPROTOTYPEIDEA MVP DFMMFP BUILD $
  14. 14. HOW HARD CAN IT BE?
  15. 15. www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. 17 HARDWARE ROAD MAP FUND SHIPPROTOTYPEIDEA BUILD $ SCALE ITERATEITERATE ITERATE BUILD COMMUNITY (Email, Social Media etc) BRAND POSITIONING USP PITCHING PR RELATIOSNHIP WIH BLOGGERS, JOURNALISTS AND INFLUENCRES LAUNCH! VALIDATE FIGURE OUT HOW TO KEEP ON SEELING! DISTRIBUTION FULLFILMENT FUNDRAISING
  16. 16. NEW RULES OF THE GAME
  17. 17. 20 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. HARDWARE IS NOT SOFTWARE Skills Development Cycle Cash
  18. 18. 21 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. Start with IdeaLorem ipsum dolor sit amet, consectetur Prototyping Industrial Design Firmware Gerber CAS Marketing PR Branding Video Testing Sourcing Negotiation Assembly Tooling Quality Management Fundraising Fulfilment Distribution
  19. 19. 22 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. VS
  20. 20. 23 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. Hardware is a CASHFLOW BUSINESS It takes money to get to the market and even more money to scale your company. This means that your funding strategy is second priority only to creating an amazing product. Marc Barros, founder of contour
  21. 21. 24 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. + $10M + -$25k Friends & Family Grants Seed Series A Bridge of Death CrowdfundingCROWDFUNDING $100k- $1mln Accelerator $25- $500k% $$$ time Pre-orders Debt
  22. 22. IDEA HARDWARE ROAD TO SUCCESS $
  23. 23. A Winning Hardware Idea CHECKLIST
  24. 24. BUILD THE RIGHT THING The question is not any more whether we can build it but whether what we are building is worth while Cyril Ebersweiler, HAX
  25. 25. Source: http://www.slideshare.net/haxlr8r
  26. 26. HW+ SW+ Community
  27. 27. We make growing really, really simpleWe’re focused on what’s important YOUR CROP HARDWARESOFTWARE COMMUNITY THE ARC
  28. 28. Build an Experience not a Product!
  29. 29. PROTOTYPE HARDWARE ROAD TO SUCCESS $
  30. 30. PROTOTYPE MVP MFP DFM Minimum Valuable Product Minimum Functional Prototype Designed For Manufacturing, assemble, test and cost
  31. 31. MINIMUM • Build it at home – use Alibaba, maker spaces, laser cutters • Stock up on duck tape • Use ready made solutions • Iterate with customers as much as possible – both look alike and work alike prototypes
  32. 32. YOU DONT GET A SECOND CHANCE Iterate like your life depends on it
  33. 33. FUNCTIONAL FULLY INTEGRATED WORK ALIKE and LOOK ALIKE PROTOTYPE WITH DESIGN INTENDED TO BE PRODUCTION READY
  34. 34. MANUFACTURING READY FOR Welcome to manufacturing madness
  35. 35. „NO HARDWARE SURVIVES CONTACT WITH THE FACTORY” CYRIL EBERSWEILER, HAX
  36. 36. Source: http://www.slideshare.net/haxlr8r
  37. 37. Source: http://www.slideshare.net/haxlr8r
  38. 38. SHENZHEN, CHINA “All Hardware Lead To Shenzhen” Welcome To Silicon Valley For Hardware:
  39. 39. PROTOTYPE FASTER &BETTER
  40. 40. ALL THE COMPONENTS YOU MIGHT EVER NEED 10 Minutes Away from The Office
  41. 41. INTEGRATED SUPPLY CHAIN “China has the MOST COMPLETE integrated supply chain which will scale you all the way to $1billion compay”
  42. 42. DEVELOP RELATIONSHIPS WITH FACTORIES
  43. 43. CENTURIES OF EXPERIENCE “Factory Engineers can look at a product and tell you if what you have can be made and how to do it” – Bunnie Huang, Hardware Hacker
  44. 44. FUND HARDWARE ROAD TO SUCCESS $ $
  45. 45. It’s NOT ONLY ABOUT MONEY VALIDATION SOCIAL PROOFCOMMUNITY BUILDING
  46. 46. Lessons Learned FACTOR IN COSTS AND DELAYS CHECK YOUR MARGINS, FUNDED DOES NOT MEAN PROFITS PREPARATION IS THEY KEY MASTER THE ART OF LAUNCH, PR and MOMENTUM BUILDING YOU HAVE 4 hours!
  47. 47. BEFORE LAUNCH CROWDFUNDING CHECKLIST
  48. 48. #1. BUILD A STRONG COMMUNITY 150k Beta Testers prior To campaign Skully. $2.4 mln
  49. 49. #2. CONNECT AND LINE UP JOURNALISTS, BLOGGERS AND INDUSTRY INFLUENCERS 100 Bloggers on board 24k Journalists Contacted 10 Media Appearances 5k email List 1 Private Group For Supporters 1 Full time Assistant
  50. 50. #3. KNOW YOUR NUMBERS Be 100% sure you can build it and KNOW HOW MUCH IT WILL COST! Factor in ALL the costs + DELAYS COGS /BOM Manufacturing Shipping + Distribution
  51. 51. FUNDING FORMULA # EMAIL SIGNUPS AVERAGE PLEDGE CONVERSI ON RATE X X = FUNDING GOAL
  52. 52. FUNDING FORMULA # EMAIL SIGNUPS AVERAGE PLEDGE CONVERSION RATEX X = 100k FUNDING GOAL X $200 10
  53. 53. ANATOMY OF A 100k KICKSTARTER PROJECT $100k - $5k (Kickstarter Fee - 5%) - $5k (Amazon Payment Fee 5%) - $30k COGS (1/3 of sales) - $20k Tooling = $40k for a team for a year + Other costs Certifications, Returns, Fulfillment, Marketing
  54. 54. Ultimate Guide to Launching a Kickstarter: How to have hundreds of blogs lined up on the day of launch Access our launch emails, email templates for journalists, bloggers and more How to Build and use your community to optimize for virality and shareability Step by step blueprint for crushing your goal: http://sheisonfire.com/kickstarter
  55. 55. Source: Hax.coSource: http://www.slideshare.net/haxlr8r
  56. 56. BUILD HARDWARE ROAD TO SUCCESS $
  57. 57. But.. Expect the Unexpected to Happen
  58. 58. SHIP HARDWARE ROAD TO SUCCESS $
  59. 59. Distribution Certifications Retail Orders fulfillment and inventory management, Shipping, Returns and support ULTIMATELY, ITS NOT ABOUT LOGISTICS, ITS ABOUT YOUR BUSINESS STRATEGY
  60. 60. SCALE HARDWARE ROAD TO SUCCESS $
  61. 61. SHIP FAST, SCALE SLOW
  62. 62. 73 www.companyname.com © 2015 Planner PowerPoint Template. All Rights Reserved. $10M + -$25k Friends & Family Grants Seed Series A Bridge of Death CrowdfundingCROWDFUNDING Accelerator $$$ time Pre-orders Debt THE RETAIL CHASM
  63. 63. SCALING REQUIRES HEALTHY CASH FLOW , OTHERWISE YOU MIGHT END UP SCALING A MONEY-LOOSING BUSINESS Benjamin Joffee, Hax.co
  64. 64. Source: http://www.slideshare.net/haxlr8r
  65. 65. 76 BIGGEST HARDWARE LESSONS 01 BUILD THE RIGHT THING 04 KNOW YOUR NUMBERS 02 CASH IS THE KEY BE IN FOR A LONG RUN05 GET HELP 03
  66. 66. DO IT! THANK YOU agnieszkanazaruk@gmail.com @agaonfire www.sheisonfire.com/kickstarter

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