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Hardware: harder, better, faster, stronger


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The state of the hardware startup industry: Harder, Better, Faster, Stronger.

Published in: Technology

Hardware: harder, better, faster, stronger

  1. 1. Harder,! Better,! Faster,! Stronger.
  2. 2. • Hardware Startup Accelerator • “Lean Hardware Academy” • $25~$100k • In Shenzhen (SV for HW) ! • Founders • Stanford MIT, Berkeley, Apple… • M/F, 20s~40s • 60% N.A. 20% EU 20% Asia
  3. 3. Automation Home Sports Music Lifestyle Education Interaction Health Entertainment Pets 50 startups (+30 in 2015)
  4. 4. #1 investor in crowdfunded hardware
  5. 5. Crowdfunding Experts:! #1 Investor in crowdfunded hardware! ! Crowdfunding starts when prototype, BOM, supply chain are de-risked by the end of the HAX program.! !
  6. 6. Trend 1! Harder
  7. 7. ! While prototyping is getting easier and the supply chain in China opened up to startups, building something unique and defensible is increasingly hard.! Going from 0 to many:
  8. 8. ! Dreamer!!!!!!!!!!!!!!0! Maker!!!!!!!!!!!!!!!!! 0.1! Veteran!!!!!!!!!!!!!!!!1! Indie!!!!!!!!!!!!!!!!!!!!!1k! Startup!!!!!!!!!!!!!!!!!10k! Inspired by Seeed Studio Shipping products:
  9. 9. ! The skills needed to prototype hardware are varied, but various tools! and products made it! increasingly accessible.!
  10. 10. Maker skills:! Mechanical! Electronics! Software! Design
  11. 11. ! Beyond a prototype, something unique enough making requires wider and deeper technical knowledge.!
  12. 12. Hardware 2.0 skills:! Connected! Sensors! AI / AR / VR! Data science
  13. 13. This smart trash can uses a Kinect to track and moves to catch the rubbish you throw.
  14. 14. ! Going from prototype to a manufacturable product and a sustainable business requires many extra skills.! From 0.1 to 1 to many
  15. 15. Startup skills:! Mechanical! Electronics! Software! Design Strategy! Production! Marketing! Finance! Community
  16. 16. Positioning! Sourcing! Supply chain! Communication! Social! Advertising! PR! Working capital! Fundraising! Engagement! Support Strategy! Production! Marketing! Finance! Community
  17. 17. Trend 2! Better
  18. 18. More startups are targeting very specific problems instead of just getting excited with technology.! ! Not everything is worth building at scale.
  19. 19. Lean Hardware rule #1! ! “Build the right thing”
  20. 20. Ye Olde Future Humanoid robots Jet pack HoverboardFlying car
  21. 21. Even a humanoid robot in space!
  22. 22. Robots in daily life Cleaning Mowing Surgery Vertical mobility Thermostat
  23. 23. More robots Drones for fun! or specific industries Robot butler Robots for pets Robots with katanas?
  24. 24. Future of Mundane:! Hotel staffed by robots For some jobs, humans will be at a premium soon! In Shenzhen of course
  25. 25. HAX Startup:! Pipetting robot for biology research
  26. 26. HAX Startup:! Prynt turns your smartphone into an instant camera, with extra AR features
  27. 27. Patents used to be the go-to way to protect IP.! ! Today, software, complex algorithms, data science, communities of users or developers are often more valuable.! ! That and of course time-to-market.
  28. 28. Trend 3! Faster
  29. 29. No prototype? No excuse!
  30. 30. - Iterate fast (“Lean prototyping”)! - Learn manufacturing! - Learn from factories Scalable prototypes needs more
  31. 31. Lean Hardware rule #2! ! “Build things right”
  32. 32. “Shenzhen’s electronics market is a maker’s dream”
 Katarina Ilic
  33. 33. “Every week we’re getting
 a month worth of output”
 Dan Corkum
  34. 34. Being on the factory floor for prototyping and manufacturing helps anticipate and solve problems at record speed.
  35. 35. “All hardware! lead to Shenzhen”
  36. 36. Trend 4! Stronger
  37. 37. More global! More startups! More funding! More exits
  38. 38. China’s Xiaomi is about to become the most valuable private tech company in the world at a valuation above $40B.! It took only 4 years.! ! They plan to launch 100 hardware startups. Online first, no ads. Outlier or Pioneer?
  39. 39. Not everyone has the resources and experience of Xiaomi’s founder Lei Jun, yet startups can be built faster than ever.! ! Where will the nest next hardware unicorn ($1B+ startup) or “Xiaomi for X” come from? The next unicorns
  40. 40. Lean Software Measure Build Learn
  41. 41. Fund Milestones Learn Lean Hardware
  42. 42. Milestones:! Customer discovery! Work-like prototype! Look-like prototype! Crowdfunding! Shipping & reviews
  43. 43. “Crowdfunding is! the new seed”
  44. 44. Do it right and you could go to market with less than $50k in capital, the rest covered by customers. Cost-wise, it’s like the web in 2000.!
  45. 45. From Kickstarter ($500k) to Series A ($5M)
  46. 46. Lean Hardware rule #3 ! ! “Ship fast, scale slow”"
  47. 47. Scaling requires healthy cash flow and margins, otherwise you might end up scaling a money-losing business.
  48. 48. In addition, both online and offline retail require a mastery of supply chain, logistics and the “in-store” customer experience.! Scale when it’s solid.
  49. 49. Recap: Death Traps! Poor positioning! Learning too slow! Premature Crowdfunding! Hands-off Manufacturing! Premature scaling
  50. 50. If you dodge death,! you win!
  51. 51. Thanks!! !!