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Hardware Trends 2016

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Hardware is eating the world - and there's no app for that!

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Hardware Trends 2016

  1. 1. HARDWARE TRENDS 2016 www.hax.co/lean-hardware June 2016
  2. 2. HAX | HARDWARE TRENDS 2016 | PAGE 2 Ecosystem1 Lifestyle3 Health Tech4 Robotics5 Infrastructure6 Fabrication7 China8 2 Fundings + M&A CONTENT Notes: - Many of the products mentioned are not on market yet - HAX and SOSV startups quoted in the report are indicated in the Appendix
  3. 3. HAX | HARDWARE TRENDS 2016 | PAGE 3 HARDWARE IS CHANGING EVERYTHING …and there is no app for that The visions of science fiction with flying cars, jet packs, bionic humans and humanoid robots are getting realized, but also showing their limits. Closer to us, IoT keeps growing and entering more industries: automotive, food, healthcare, retail, hospitality, sports and more. Every object is being reinvented, thanks to low-cost and innovative sensors, and the data generated. “Connected” will soon be as mundane as “electric”. This report covers some major trends and key examples of what is coming in this new technical revolution. GET READY FOR THE FUTURE! A report by: Benjamin Joffe Cyril Ebersweiler Duncan Turner Karina Chang Kate Whitcomb Nick Plante Our grateful thanks to: The many HAX founders, mentors, partners and friends who continuously share their knowledge and experience to make the impossible happen. ben@hax.co cyril@hax.co duncan@hax.co karina@hax.co kate@hax.co nick@hax.co FOREWORD
  4. 4. HAX | HARDWARE TRENDS 2016 | PAGE 4 Benjamin Joffe Partner HK / Shenzhen Karina Chang Program Director HAX China Shenzhen About HAX Nick Plante Program Director Urban-X New York Duncan Turner Managing Director HAX Accelerator Shenzhen Kate Whitcomb Program Director HAX Boost San Francisco Cyril Ebersweiler Founder, Managing Director San Francisco HAX is the leading startup accelerator focused on hardware. We have invested in over 160 IoT/robotics/health tech companies globally. with
  5. 5. About SOSV THE ACCELERATOR VC
 #MEGA-TRENDS #IMPACT #GLOBAL SYNTHETIC BIOLOGYSOFTWARE HARDWARE FOOD BUSINESS
  6. 6. HAX | HARDWARE TRENDS 2016 | PAGE 6 ECOSYSTEM CES Fab Labs Maker Spaces Maker FaireMaker Movement IoT Meetups 0 to 0.x Computers in things Jet packs Further future
  7. 7. HAX | HARDWARE TRENDS 2016 | PAGE 7 THE FUTURE IS HERE: FLYING CARS AEROMOBIL Based in Slovakia. BACK TO THE FUTURE 1985
  8. 8. HAX | HARDWARE TRENDS 2016 | PAGE 8 THE FUTURE IS HERE: JET PACKS STAR WARS 1977 MARTIN JETPACK Listed in Australia for $250m. Price: $250,000
  9. 9. HAX | HARDWARE TRENDS 2016 | PAGE 9 THE FUTURE IS HERE: UNIVERSAL TRANSLATORS STAR TREK 1966 Language translation earpiece. $2.3m on Indiegogo
  10. 10. HAX | HARDWARE TRENDS 2016 | PAGE 10 THE FUTURE IS HERE: EXOSKELETONS ROBOCOP 1987 IPO in Japan in 2014 - Market cap: $5b 2 other IPOs in USA
  11. 11. HAX | HARDWARE TRENDS 2016 | PAGE 11 Every part of the hardware startup ecosystem is getting better. • Prototyping tools and resources are multiplying. • Communities for creation and learning are growing: offline like Maker Spaces, Fab Labs, HackerSpaces, or online like Hackster. • Hardware startup accelerators have spread, investors are gaining experience and confidence, leading to increased early stage funding. Crowdfunding is also maturing: media and backers are more careful, and creators better prepared. • Still, many products are rushed to market. Quality suffers, they get bad retail terms, do weak brand and demand building. • Overall, the gap between “makers” and startups is widening. Today’s hardware startups are found at CES rather than at Maker Faires. Today’s hardware startups are found at CES rather than at Maker Faires. THE HARDWARE ECOSYSTEM
  12. 12. HAX | HARDWARE TRENDS 2016 | PAGE 12 China France Canada Germany UK South Korea Hong Kong Japan 0 300 600 900 1,200 40 48 49 53 54 92 211 1,127 Source: CES • 3,800 exhibitors • >50% from abroad International Exhibitors CES: SURFING THE IOT WAVE
  13. 13. HAX | HARDWARE TRENDS 2016 | PAGE 13 0 125 250 375 500 2012 2013 2014 2015 2016 500 375 236 140 94 Exhibitors in Eureka Park Source: CES, media quotes CES: EUREKA PARK STARTUP ZONE
  14. 14. HAX | HARDWARE TRENDS 2016 | PAGE 14 Map by VentureScanner 1. Home (145) 2. Platform (112) 3. Healthcare (110) 4. Fitness (99) 5. Lifestyle (98) 6. City/Infra (46) 7. Smartwatches (44) 8. Automotive (43) 9. UI (40) 10. Agriculture (38) 11. Toys (25) 12. Trackers (24) IOT ECOSYSTEM MAP
  15. 15. HAX | HARDWARE TRENDS 2016 | PAGE 15 • Membership grew 40% to 170% in just over a year. • Non-US meetups
 = 2/3 of the top cities IoT Bangalore IoT London SF Hardware IoT Paris Hardwired NYC SF IoT IoT SF/SV IoT Central NYC IoT Israel NYC HW Startup 0 2,500 5,000 7,500 10,000 2,319 1,776 2,013 3,074 2,841 3,028 2,397 4,086 4,712 3,219 3,720 3,959 4,111 4,355 4,540 4,663 5,044 5,664 8,288 8,701 June 2016 March 2015 Source: meetup.comTop IoT & Hardware Meetups HARDWARE MEETUPS ARE GROWING FAST
  16. 16. HAX | HARDWARE TRENDS 2016 | PAGE 16 Like Soylent Green, “hardware is people”: beyond initial prototyping come suppliers, manufacturers & distributors. 0 to 0.x 0.x to 1 1 to Many Prototyping Productization Production Many to All Scaling Tools Sourcing, DFM ZERO TO SCALE DistributionSupply chainREQUIREMENTS STAGE CHANGES Lower costs New tools Opening to startups Opening to startups
  17. 17. HAX | HARDWARE TRENDS 2016 | PAGE 17 C.H.I.P. World’s first $9 computer will make smart products the new normal COMING NEXT: MICROCOMPUTERS
  18. 18. HAX | HARDWARE TRENDS 2016 | PAGE 18 WILL STARTUPS CREATE THEIR OWN CHIPS? Like Google’s AI-centric
 “Tensor Processing Unit” COMING NEXT: CUSTOM CHIPS
  19. 19. HAX | HARDWARE TRENDS 2016 | PAGE 19 POWERING DEVICES with motion vibration, solar, thermal, RF COMING NEXT: ENERGY HARVESTING
  20. 20. HAX | HARDWARE TRENDS 2016 | PAGE 20 LOW-COST INDUSTRIAL ARMS Small-scale manufacturing Automation in new fields COMING NEXT: LOW-COST AUTOMATION
  21. 21. HAX | HARDWARE TRENDS 2016 | PAGE 21 Better prevention Remote monitoring & care Support 10x more patients COMING NEXT: PRECISION HEALTHCARE
  22. 22. HAX | HARDWARE TRENDS 2016 | PAGE 22 COMING NEXT: HARDWARE + BIOTECH CONVERGENCE Koniku’s “neurons on chips" could unlock new stages of Moore’s Law
  23. 23. HAX | HARDWARE TRENDS 2016 | PAGE 23 Accelerators Crowdfunding Acquisitions FUNDING + M&A Investment
  24. 24. HAX | HARDWARE TRENDS 2016 | PAGE 24 COMPANY PRODUCT FUNDING 1 Magic Leap AR/MR $1.42b 2 Jawbone Speakers, wearables $890.8m 3 Sigfox IoT network $151.3m 4 3D Robotics Drones $126m 5 Carbon 3D printing $141m 6 Ring Smart doorbell $100m 7 Codoon Fitness bands $91m 8 Bolt Threads Fabric printing $90m 9 Eero Home wifi $90m 10 Sphero Robot toys $90m 11 Niu Smart e-scooter $80m 12 Mobvoi AI-based smart watches $75m 13 Yuneec Drones $60m 14 Jibo Social robots $52.3m 15 Ehang Drones $52m 16 Roli Music keyboards $43.5m 17 Hello Sleep tracker $40.5m 18 Devialet Speakers $39.1m 19 Netatmo Connected devices $38.67m 20 Parrot Drones $35.21m NOTABLE INVESTMENTS IN 2015-16 While the most funded startups are mostly US-based, large rounds went to several French and Chinese startups. Drone startups made a strong showing.
  25. 25. HAX | HARDWARE TRENDS 2016 | PAGE 25 • Venture Scanner tracks over 900
 IoT startups. • The categories attracting the most investment are Consumer IoT and Health care. Source: Venture Scanner, September 2015 NOTABLE INVESTMENTS IN 2015-16
  26. 26. HAX | HARDWARE TRENDS 2016 | PAGE 26 MNCs from traditional industries are now buying hardware companies. NOTABLE ACQUISITIONS BUYER TARGET PRICE General Motors cars Cruise self-driving tech $1b Fossil watches Misfit wearables $260m Nokia telecom Withings smart health $191m Mars pet food Whistle pet activity tracker $117 Mattel toys Fuhu tablets for kids $21.5 Mattel toys Sproutling baby health tracker n.a. Midea appliances Kuka industrial robots $5b for 30%
  27. 27. HAX | HARDWARE TRENDS 2016 | PAGE 27 • June 2016: Fitbit trades at $2.75b (1/4 of its peak, 1/3 of its IPO price). GoPro lays off part of staff. Market cap is $1.5b (from US$10b+ peak). • June 2016: Toyota is the top bidder to acquire Google’s iconic robotics companies Boston Dynamics and Shaft. • June 2016: Nest founder Tony Fadell steps down from its role at Google. • April 2016: Makerbot, who laid off 20% of its staff (twice), announces the outsourcing of its manufacturing to China via Jabil, a contract manufacturer. NOTABLE NEWS
  28. 28. HAX | HARDWARE TRENDS 2016 | PAGE 28 NOTABLE NEWS: FITBIT & GOPRO
  29. 29. HAX | HARDWARE TRENDS 2016 | PAGE 29 • March 2016: Dropcam founder Greg Duffy says selling to Nest (for US$555m) was a mistake. • January 2016: CES had its biggest year. Over 500 startups participated among the 3,800 exhibitors. • December 2015: kids tablet maker Fuhu files for bankruptcy. It had raised over $100m, had $196m in revenue in 2014 and was rumored for IPO in 2014. • September 2015: invention platform Quirky files for bankruptcy. Quirky had raised $175m. NOTABLE NEWS
  30. 30. HAX | HARDWARE TRENDS 2016 | PAGE 30 • Product crowdfunding is maturing. Backers, media and creators are all more aware of the challenges. • Some creators leverage their results to raise venture capital. Some funded startups use crowdfunding to launch their products. • The amount raised on crowdfunding platforms do not seem to predict long-term success. • Kickstarter star and smart watch pioneer Pebble keeps coming back with great success. Source: Kickstarter, June 2016 Total pledged $2.1b Projects >$1m Technology $384m 32 (0.1%) Design $383m 56 (1.3%) Kickstarter Stats CROWDFUNDING Pebble raised over $40m across three Kickstarter campaigns
  31. 31. HAX | HARDWARE TRENDS 2016 | PAGE 31 • According to an independent study of Kickstarter projects by the University of Pennsylvania, 9% of successfully funded projects fail to deliver, and 2/3 deliver on time*. • Unfortunately, some high profile projects with over $1m in backing had issues. Kreyos Smart Watch US$1.5m (Indiegogo, 2013) Bankrupt Outsourced poorly and ran out of funds. Zano mini-drone US$3.4m (Kickstarter, Jan. 2015) Bankrupt Kickstarter hired a journalist to investigate the case. Conclusions: misleading video and lack of technical skills. Triton Artificial Gills ~US$900,000 (Indiegogo, April 2016) Canceled by Indiegogo Feasibility challenged by users. *Source: Survey, March 2015 CROWDFUNDING: HIGH PROFILE PROBLEMS Coolest Cooler US$13.3m (Kickstarter, 2014) “Delayed due to cash flow issues” The creator miscalculated costs and cash flow suffered. By April 2016, about 2/3 of the 62,000 backers had not received it. CASH FLOW BANKRUPT BANKRUPT IMPOSSIBLE?
  32. 32. HAX | HARDWARE TRENDS 2016 | PAGE 32 Coachware Augmented Objects Smart Home AR/VR Active Tech Personal Farming Dataware LIFESTYLE Pet Tech Family TechKitchen Tech Baby Tech Travel Tech Smart Toys Personal Transporters Music Tech Audio Tech HCI Smart Clothing Silver Tech
  33. 33. HAX | HARDWARE TRENDS 2016 | PAGE 33 AUGMENTED OBJECTS - New technologies are making their way into everyday objects. R&D + COMPONENTS - New research and cheaper components such as sensors - thanks to smartphones - drive innovation. BETTER AND DIFFERENT - Objects get better, personalized or create entirely new usages. MORE CHANNELS - Retailers want to offer new in-store experiences to compete with online retail. 1 2 3 LIFESTYLE 4
  34. 34. Magazines are like broken iPads Today Glass doors are assumed to be automatic. Yesterday My toaster is smart and autonomous. It recognizes me and knows my preferences. Tomorrow We’ll expect more from objects, as we already do. AUGMENTED OBJECTS: THE NEW NORMAL?
  35. 35. HAX | HARDWARE TRENDS 2016 | PAGE 35 …what’s next? Natural Crafted Electric Connected AUGMENTED WORDS: LIGHT
  36. 36. Photo: Mashable AUGMENTED INSTANT CAMERA: PRYNT
  37. 37. HAX | HARDWARE TRENDS 2016 | PAGE 37 Beats brought a unique design and identity… …what else could be done? AUGMENTED HEADPHONES
  38. 38. HAX | HARDWARE TRENDS 2016 | PAGE 38 New Designs? Axent AUGMENTED HEADPHONES
  39. 39. HAX | HARDWARE TRENDS 2016 | PAGE 39 Custom filters Here AUGMENTED HEADPHONES
  40. 40. HAX | HARDWARE TRENDS 2016 | PAGE 40 Custom fit Revols AUGMENTED HEADPHONES
  41. 41. HAX | HARDWARE TRENDS 2016 | PAGE 41 Custom tuning Nura AUGMENTED HEADPHONES
  42. 42. HAX | HARDWARE TRENDS 2016 | PAGE 42 A.I. Vi AUGMENTED HEADPHONES
  43. 43. Custom A.I. like in “Her”? We’re not far! AUGMENTED HEADPHONES
  44. 44. HAX | HARDWARE TRENDS 2016 | PAGE 44 PERSONALIZING EVERYTHING? TO OUR BODY TO OUR MIND TO OUR SENSES TO OUR PREFERENCES TO OUR ENVIRONMENT AUGMENTED OBJECTS: PERSONALIZATION
  45. 45. HAX | HARDWARE TRENDS 2016 | PAGE 45 What do those products have in common? Dyson 360 Eye Nest Thermostat Amazon Echo Microsoft Hololens Netatmo Welcome a. They are computers b. They cost at least $150 QUESTION ANSWER Source: Dave Rauchwerk / NextThingCo AUGMENTED OBJECTS: THE NEW NORMAL
  46. 46. HAX | HARDWARE TRENDS 2016 | PAGE 46 • Consumer devices are moving from using micro-controllers to computers, to give them more intelligence and autonomy and reduce their dependency on mobiles or cloud services. • The next generation will require cheaper computing options to become truly mass market. AUGMENTED OBJECTS: COMPUTERS IN THINGS
  47. 47. HAX | HARDWARE TRENDS 2016 | PAGE 47 • A range of micro-controllers, prototyping boards and micro-computers with various capabilities are available to build projects and deploy devices. • The $10 barrier was broken by NextThing’s C.H.I.P.’s $9 computer and Raspberry Pi’s $5 Pi Zero. Is the future free or disposable computing? AUGMENTED OBJECTS: MICROCOMPUTERS
  48. 48. HAX | HARDWARE TRENDS 2016 | PAGE 48 Micro-computers are making viable an unprecedented array of smart devices. PocketCHIP: $49 Linux computer and retro game console Amazon Echo built for $10 Using CHIP AUGMENTED OBJECTS: INTELLIGENT THINGS
  49. 49. HAX | HARDWARE TRENDS 2016 | PAGE 49 INTERNET IN THINGS SENSORS IN THINGS COMPUTERS IN THINGS APPS IN THINGS A.I. IN THINGS AUGMENTED OBJECTS: THE NEW NORMAL
  50. 50. HAX | HARDWARE TRENDS 2016 | PAGE 50 Generic trackers Specialized trackers Coachware Generic trackers are turning into commodities. Early movers are facing the pressure of low-cost devices, specialists and more advanced coachware. LIFESTYLE: ACTIVE TECH
  51. 51. HAX | HARDWARE TRENDS 2016 | PAGE 51 The first wave of consumer AR - namely Google Glass - didn’t meet a market. The new generation is trying to solve issues of appearance, costs and user experience. Microsoft Hololens Magic Leap Mixed reality headset Cool Glass HIGH END CONSUMER Alpha Glass Full-lens display Daqri AR hard hat SPECIALIST Skully AR bike helmet LIFESTYLE: AUGMENTED & MIXED REALITY
  52. 52. HAX | HARDWARE TRENDS 2016 | PAGE 52 Oculus Rift Facebook $599 Vive HTC $799 Gear VR Samsung $99 Cardboard Google $19.95 HIGH END LOW END 2016 is the year of VR devices. PlayStation VR Sony $399 LIFESTYLE: VIRTUAL REALITY
  53. 53. HAX | HARDWARE TRENDS 2016 | PAGE 53 Samsung Gear 360 $350 Nokia Ozo $60,000 PROFESSIONALCONSUMER Called VR, 360, 3D or spherical cameras, they are a key piece of the VR content puzzle. Startups, CE and camera companies are launching products from about $300 to… $60,000. Giroptic 360cam $499 LIFESTYLE: VR CAMERAS GoPro Omni $5,000
  54. 54. HAX | HARDWARE TRENDS 2016 | PAGE 54 Interaction and control in augmented, mixed or virtual reality can be difficult, especially in VR where users can’t see their hands directly. Startups are offering new solutions. LIFESTYLE: INTERACTING IN AR, MR & VR Leap Motion Controller, VR mount and Orion hand-tracking software Raised $44m FOVE Eye tracking VR headset Raised $11.1m
  55. 55. HAX | HARDWARE TRENDS 2016 | PAGE 55 Locks, lights, AC, air sensors and more are getting smarter. Which device will rule them all? Echo by Amazon A hit AI-powered product. Amazon allows third parties to build on its Alexa platform Google Home The answer to Amazon? Siri remote by Apple The new universal remote? LIFESTYLE: SMART HOME WARS
  56. 56. HAX | HARDWARE TRENDS 2016 | PAGE 56 Products targeting families with young children are multiplying. Pets - as family members - also get special attention. 4moms: robotic products for pre-school. Raised $60m Owlet: baby monitor Raised $8.97m Octopus: icon-based smart watch to build good habits PetCube: camera and laser for pets. Raised $3.79m LIFESTYLE: BABY / FAMILY / PET TECH
  57. 57. HAX | HARDWARE TRENDS 2016 | PAGE 57 Technology is coming into the kitchen. New devices offer automation, monitoring, precision or affordable versions of professional devices. Nomiku Sous-vide cooking appliance Rotimatic Roti-making appliance Auroma Advanced coffee maker Bartesian Capsule-based cocktail machine LIFESTYLE: KITCHEN TECH
  58. 58. HAX | HARDWARE TRENDS 2016 | PAGE 58 New devices enable semi-automated home production of food. This can be seen as an important step toward sustainability. Click and Grow: grows herbs. Raised $2.2m. Grobo: precise control to grow regular or medicinal plants. Living Farms: smart edible insect farm for tasty and clean home-grown proteins. LIFESTYLE: PERSONAL FARMING
  59. 59. HAX | HARDWARE TRENDS 2016 | PAGE 59 Instruments are being reinvented for easier learning and usage, or to offer new functionalities. New accessories and musical tools are also spreading. Roli: expressive keyboard Raised US$43.5m TheONE: smart piano Raised US$10m series B Keys by Opho: smart keyboard with gesture control LIFESTYLE: MUSIC TECH
  60. 60. HAX | HARDWARE TRENDS 2016 | PAGE 60 Travelers demand better luggage. Location tracking, security, battery charging… and hands-free movement. Samsung and Samsonite reportedly teamed up to create smart luggage. Bluesmart $2M Indiegogo campaign Raised US$6m Raden Raised $3.5m Space Case 1 $920k on Kickstarter Nua Robot suitcase that follows its owner. LIFESTYLE: TRAVEL TECH
  61. 61. HAX | HARDWARE TRENDS 2016 | PAGE 61 • The market for personal transporters has fragmented into one-wheelers, two- wheelers and more. The hoverboard became a hit in 2015 until battery issues plagued its reputation and reduced imports. • The Chinese startup Ninebot raised US$80m from Sequoia and Xiaomi and acquired Segway. It launched new products to positive reviews. HoverboardSegway Ninebot MiniOnewheel Solowheel Z-board Cocoa Motors LIFESTYLE: PERSONAL TRANSPORTERS
  62. 62. HAX | HARDWARE TRENDS 2016 | PAGE 62 LIFESTYLE: THE SHOWROOM STRIKES BACK • “Showrooming” has become synonymous with the struggle of brick-and-mortar retailers against online players. • Connected devices are an opportunity to offer new in- store experiences. • New retail formats are being tested to feature connected product, including Target's Open House, Sear's connected solutions shop and B8ta retail in Palo Alto. • Retailers have launched special programs to work with early stage startups, including Amazon's Launchpad and Brookstone's Launch program HAX Product Demos at Target B8ta store in Palo Alto
  63. 63. HAX | HARDWARE TRENDS 2016 | PAGE 63 Wearapeuthics Metabolic Tech Precision Medicine Implantables HEALTH TECH InsurTech NeuroTech WellnessTech SexTech Biosensors Bionics SilverTech Predictive Care
  64. 64. HAX | HARDWARE TRENDS 2016 | PAGE 64 INSIDE OUT - New devices monitor physical, mental health as well as our environment. BEYOND TRACKING - Remote diagnosis, coaching and healing. BETTER CARE - Benefits are improved lifestyles, prevention, diagnostic, and enabling healthcare professionals to serve more people better and faster. INSURANCE - Insurance will have a key role in the spread and adoption of new technologies. 1 2 3 4 HEALTH: TRENDS
  65. 65. HAX | HARDWARE TRENDS 2016 | PAGE 65 TIME, COST & LOCATION LACK OF HEALTHCARE PROFESSIONALS BLANKET TREATMENTS SIDE EFFECTS HEALTH: CHALLENGES OF CARE
  66. 66. HAX | HARDWARE TRENDS 2016 | PAGE 66 HEALTH: LIMITS OF COMMON TRACKERS Basic activity trackers and smart watches made consumers familiar with some health features. This created new opportunities for more specialized or medical-grade devices.
  67. 67. MONITOR PREVENT DIAGNOSE COACH TRAIN HEAL HEALTH: OPPORTUNITIES
  68. 68. VAST ARRAY OF PHYSICAL & MENTAL CONDITIONS HEALTH: WHAT TO HEAL?
  69. 69. HAX | HARDWARE TRENDS 2016 | PAGE 69 HEALTH: TOWARD PRECISION INSURANCE Insurance companies are expected to play a key role in the spread of health tech devices and usage. The benefits for them range from: • Improved user behavior • Positive filtering • Better data This is expected to enable “precision insurance”
  70. 70. HAX | HARDWARE TRENDS 2016 | PAGE 70 Wearables that help manage conditions or heal their users. Skin PickingHair Pulling Nail Biting Thumb Sucking LIV by HabitAware For Body-Focused Repetitive Behavior (BFRB) SANA Smart sleeping mask against chronic pain or PTSD-induced insomnia HEALTH: WEARAPEUTHICS FeetMe Smart insoles for diabetic foot prevention
  71. 71. HAX | HARDWARE TRENDS 2016 | PAGE 71 To monitor or improve medical conditions. HEALTH: IMPLANTABLES Smartfuse Intelligent Implants Profusa Real-time biosensing implant Raised $16m Smartfuse Induction-activated implant for spinal fusion
  72. 72. HAX | HARDWARE TRENDS 2016 | PAGE 72 Test your body for pre-conditions, food or medication reactions. Proteus Digital Health Ingestible pill-based sensors & patch to increase compliance Raised over $450m BBB Smart multi-marker blood testing device (for diabetics and more) AIRE by FoodMarble Breath analyzer for prevention of Irritable Bowel Syndrome (IBS) HEALTH: METABOLIC TECH
  73. 73. HAX | HARDWARE TRENDS 2016 | PAGE 73 Startups focusing on female health and wellness. Wink by Kindara Fertility thermometer Raised $6.93m My.Flow Smart tampon to monitor periods during heavy days Vibease Smart vibrator for discreet use or long-distance HEALTH: FEMALE TECH
  74. 74. HAX | HARDWARE TRENDS 2016 | PAGE 74 Bionics are coming. Three exoskeleton companies went public. Cyberdyne Market cap: $5b Ekso Bionics Market cap: $98m Whill Raised $30.35m Open Bionics Open source robotic prosthetics ReWalk Market cap: $77m HEALTH: BIONICS
  75. 75. HAX | HARDWARE TRENDS 2016 | PAGE 75 Sense by Hello Sleep sensor Raised $40.5m Track your sleep, food and sedentary moments. Darma Sitting biosensor SCiO Pocket molecular sensor Raised $11.47m HEALTH: WELLNESS TECH
  76. 76. HAX | HARDWARE TRENDS 2016 | PAGE 76 Treatments with new devices might replace the use of drugs, for physical and mental conditions, and bring unprecedented results. Berkeley Ultrasound Trans-cranial ultrasound for treatment of depression and Alzheimer’s HEALTH: NEURO TECH
  77. 77. HAX | HARDWARE TRENDS 2016 | PAGE 77 For more information, our State of Health Tech report is out soon! COMING SOON HEALTH: REPORT
  78. 78. HAX | HARDWARE TRENDS 2016 | PAGE 78 Micro-AutomationCobots Service Robotics Robot-as-a-Service Drones ROBOTICS Autonomous Vehicles Toys
  79. 79. HAX | HARDWARE TRENDS 2016 | PAGE 79 Y U NO ROSIE? - The dream of humanoid robots seems distant still. What if the vision was wrong? VARIETY - Specialized service robots are becoming smarter and more affordable for businesses. Home robots, toys and drones are also making inroads. CREATIVE DESTRUCTION - Robots take jobs but also help create new businesses. 1 2 3 ROBOTICS: TRENDS
  80. 80. HAX | HARDWARE TRENDS 2016 | PAGE 80 • Two-legged, two-armed and untethered humanoid robots that are safe and capable are still too expensive. • For lack of a viable market, Google put on sale Boston Dynamics and Schaft, two recent acquisitions. What we imagined What we can do What we got ROBOTICS: Y U NO ROSIE?
  81. 81. HAX | HARDWARE TRENDS 2016 | PAGE 81 Savioke Room service robot Raised $17m Service robots are spreading: they can be found in hotels, warehouses, supermarkets, as well as on the pavement. Tally by Simbe Robotics Inventory robot Dispatch Robotics Ground delivery robot Raised $2m ROBOTICS: SERVICE ROBOTS Rovenso Heavy duty robotic rover
  82. 82. HAX | HARDWARE TRENDS 2016 | PAGE 82 Leaders The market is split between toys, consumer and professional service drones. Many of the top consumer drone companies are Chinese. Notable Challengers Passenger drone concept Hovering camera drone ROBOTICS: DRONES
  83. 83. HAX | HARDWARE TRENDS 2016 | PAGE 83 Cars, buses, trucks are getting higher levels of autonomy: cruise control, lane keeping, self-parking and more. GM bought Cruise for US$1b eHang Fully-automated passenger drone ROBOTICS: SELF-DRIVING TECH Olli Self-driving 3D-printed “talking” mini bus powered by IBM Watson
  84. 84. HAX | HARDWARE TRENDS 2016 | PAGE 84 Has reality caught up with science fiction? BB-8 by Sphero Star Wars-inspired robot Sold over 1m units Raised $90m Alpha & friends by UBTech $1.3m on Indiegogo Anki Drive AI-powered racing cars Raised $105m Cell Robot by KEYi Tech Modular robot ROBOTICS: TOYS
  85. 85. HAX | HARDWARE TRENDS 2016 | PAGE 85 ROBOTICS: EDUCATION Startups like Makeblock create robots for STEM education.
  86. 86. HAX | HARDWARE TRENDS 2016 | PAGE 86 Are sports trackers too 2015? Robots are coming to sports. Trainerbot Table tennis training robot (on Kickstarter) ROBOTICS: TRAINING ROBOTS Robomintoner Badminton robot from the University of Electronic Science and Technology of China
  87. 87. HAX | HARDWARE TRENDS 2016 | PAGE 87 US$100,000+ US$25,000+ < US$5,000 “An industrial grade robot arm below $5,000 opens up a broad new set of applications for manufacturers” - Rich Mahoney, SRI International ROBOTICS: ARMS RACE
  88. 88. HAX | HARDWARE TRENDS 2016 | PAGE 88 Social robots are getting lots of attention. Will they get as much adoption? Jibo A robot for the family Raised $54.6m ROBOTICS: SOCIAL ROBOTS Rokid Family A.I. device for the home A.I. Nemo Companion robot Raised over $10m series B MOBILE ROBOTS FIXED ROBOTS
  89. 89. HAX | HARDWARE TRENDS 2016 | PAGE 89 Segway Robot A segway turned into an open hardware platform for mobile robotics Xian’er Robot Monk Answers questions about life Chants sutras ROBOTICS: INTRUIGING NOVELTIES SpotMini by Boston Dynamics Picks up items, climbs stairs and does all sorts of things
  90. 90. HAX | HARDWARE TRENDS 2016 | PAGE 90 For more information, please check our State of Robotics report on Slideshare. ROBOTICS: REPORT
  91. 91. HAX | HARDWARE TRENDS 2016 | PAGE 91 City-as-a-Service INFRASTRUCTURE Smart Buildings Precision agriculture Internet of Everything Micro-grids Infra for Robots
  92. 92. HAX | HARDWARE TRENDS 2016 | PAGE 92 TECH FOR SHARING - Better and more secure sharing solutions for physical assets CITY-AS-A-SERVICE - Connecting public infrastructure, tracking and predicting events involving people, vehicles and more for better planning. SMART RESOURCES - Optimizing the flows of resources, water, energy, waste. 1 2 3 INFRA TRENDS
  93. 93. HAX | HARDWARE TRENDS 2016 | PAGE 93 INFRA: CONNECTIVITY SOLUTIONS Particle WiFi and cellular solutions for IoT Raised $4.2m Veniam Solutions for moving vehicles Raised $29.9m
  94. 94. HAX | HARDWARE TRENDS 2016 | PAGE 94 New types of networks are trying to offer easier, cheaper connection and management of smart devices. Sigfox builds low-bandwidth cellular networks. Raised US$151.3m in 4 rounds INFRA: NETWORKS FOR IOT LoRa is an industry alliance to create networks for M2M and IoT applications
  95. 95. HAX | HARDWARE TRENDS 2016 | PAGE 95 From entrance to internal networks, buildings can be upgraded or leapfrog to new technologies. INFRA: SMARTER BUILDINGS Nello: connects homes to the sharing economy (airbnb, delivery companies) by upgrading existing intercoms LumenCache makes new buildings smart by turning utility closets into control centers
  96. 96. HAX | HARDWARE TRENDS 2016 | PAGE 96 • New companies focus on better monitoring, deployment and usage of urban resources: water, waste, energy, transportation, etc. • Smarter urban furniture gives more convenience, new features or data. INFRA: URBAN RESOURCES Soofa Smarter benches Industrial / Organic Recycling facility for rapid process of organic waste Numina by CTY: Analytics for places Pedestrians, cyclists, traffic, air quality, noise pollution & more
  97. 97. HAX | HARDWARE TRENDS 2016 | PAGE 97 Sensors and drones help improve the use of resources for precision agriculture. Robots provide an alternative to the “get big or get out” in farming, enabling smaller, more diverse farms. Source: https://thefern.org/ag_insider/rise-of-robots-a-boost-to-small-diverse-farms/ Pycno: wireless soil sensors and software platform for advice Rowbot: robot for in-season nitrogen management Agribotix: agricultural drones for imaging & analysis. INFRA: PRECISION AGRICULTURE
  98. 98. HAX | HARDWARE TRENDS 2016 | PAGE 98 FABRICATION Precision Production Microfactories Desktop Manufacturing Fab-on-Demand Industrial IoT Smart Factories Mass Customization
  99. 99. HAX | HARDWARE TRENDS 2016 | PAGE 99 DESKTOP SIZE - Factory tools are shrinking in size and price, and making their entry into workshops. Tools get smarter and connected. MICRO-FACTORIES - New machines enable prototyping or small batch manufacturing on- shore at lower costs. 1 2 FABRICATION: TRENDS
  100. 100. HAX | HARDWARE TRENDS 2016 | PAGE 100 Continuous Liquid Interface Production CLIP Selective Laser Sintering SLS Stereolithography SLA Fused Deposition Modeling FDM • MakerBot-style 3D printers are getting commoditized. • New technologies offer faster speeds and higher quality, but still plastic. • New soft materials (clay, silicone or bio-materials) are becoming usable. Multi-material extruder FABRICATION: 3D PRINTING
  101. 101. HAX | HARDWARE TRENDS 2016 | PAGE 101 • Low-cost and smarter tools are coming to market. • Most manufacturing requires tools to cut materials, soft and hard. • Even electronics can be prototyped faster with PCB printers Shaper Othermill V.Former Laser cutting Handheld cutting CNC Milling Vacuum FormingWaterjet cutting PCB Printing FABRICATION: TOOLS
  102. 102. HAX | HARDWARE TRENDS 2016 | PAGE 102 Biotech is having its “PC Moment” with cheaper and smaller machines democratizing and accelerating biotech research. “We are heading towards machines that can print directly into people, or even… ‘people’. Surgery robots will also be bioprinters” - Jemma Redmond, CEO, Ourobotics OpenTrons: automates tedious liquid handling BioBots: bioprinter enabling research and testing on biomaterials and future implants Ourobotics: multi-material bioprinter FABRICATION: BIO-FABRICATION
  103. 103. HAX | HARDWARE TRENDS 2016 | PAGE 103 From new materials to 3D printing, the fabrics and garment industry is likely to evolve quickly in the coming years. Bolt Threads: creates spider-like silk material. Raised $90m in 3 rounds. Electroloom Fabric printer using electrospinning Kniterate: knitting robot making garments from common threads Kniterate FABRICATION: FABRICS
  104. 104. HAX | HARDWARE TRENDS 2016 | PAGE 104 New tools will allow the mass creation of custom products. FABRICATION: MASS CUSTOMIZATION PinPress: a shape-shifting mold for bespoke manufacturing
  105. 105. HAX | HARDWARE TRENDS 2016 | PAGE 105 CHINA Global Startups Silicon Shenzhen Pragmatic Innovation China-first Shanzhai Xiaomization
  106. 106. HAX | HARDWARE TRENDS 2016 | PAGE 106 SHENZHEN - With few exceptions, all roads lead to Shenzhen for global hardware startups. SPEED or TECHNOLOGY? - Mix of “incremental” and high-tech startups, generally prioritizing speed over R&D. LOCAL & GLOBAL - While most are China-first or China-only,
 some want to be global from start. HOT! - Oversupply of capital drives high valuations. 1 2 3 4 CHINA: TRENDS
  107. 107. HAX | HARDWARE TRENDS 2016 | PAGE 107 • Shenzhen’s reputation has grown as the “Silicon Valley for Hardware”. • Makerbot, the Maker Movement pioneer and advocate of the “Made in USA” is moving its production to Shenzhen. • The Shenzhen supply chain is increasingly open to startups. • The annual FAB global conference for Fab Labs is being held for the first time in Shenzhen in 2016. Shenzhen, the Silicon Valley of Hardware Documentary by WIRED UK CHINA: MORE SHENZHEN
  108. 108. HAX | HARDWARE TRENDS 2016 | PAGE 108 “Why are Apple products made in China?” Charlie Rose, 60 Minutes, Dec. 2015 “It’s skill.” Tim Cook, CEO, Apple “…you can take every tool and die maker in the U.S. and probably put them in this room.” “In China, you would need multiple football fields.” CHINA: SKILLS & SCALE
  109. 109. HAX | HARDWARE TRENDS 2016 | PAGE 109 • Inspired by German’s “Industry 4.0” plan, the Chinese government is pushing for an upgrade of its manufacturing sector under the name “Made in China 2025” • The plan involves automation (Foxconn plans to replace 30% of its labor with robots by 2020), smart and sustainable technologies • Premier Li Keqiang made a public call for “mass entrepreneurship and innovation” at the Summer Davos Forum in Sept. 2014. CHINA: MADE BY CHINA
  110. 110. HAX | HARDWARE TRENDS 2016 | PAGE 110 Chinese hardware startups tend to focus on “pragmatic innovation” for better ROI to avoid “market risk” on top of “execution risk”. RARE GLOBAL LEADERS ( DJI, Ninebot ) MOST CHINESE STARTUPS A FEW $ “SHANZHAI” Getting to market fast is seen as more important than creating technologies without proof of a market While US companies often struggle in China, a Chinese-born startup could - like DJI - become a truly global leader.INNOVATION CHINA: PRAGMATIC INNOVATION
  111. 111. HAX | HARDWARE TRENDS 2016 | PAGE 111 • Xiaomi continues investing in hardware startups (55 so far). It distributes headphones, power banks, personal transporters, e-bikes, air purifiers, rice cookers, drones… 7 startups announced revenue over $15m in 2015, and 2 over $150m. • Xiaomi’s “mi-too” power play might slow down innovation by underpricing competitors. Xiaomi Smart Rice Cooker Xiaomi hired a star Japanese engineer to create a cheaper, better and symbolic product. Xiaomi Drone A 4k drone for less than US$500 CHINA: XIAOMIZATION Xiaomi Foldable e-Bike 45km for $450
  112. 112. HAX | HARDWARE TRENDS 2016 | PAGE 112 While Segway took years to grow a market, hoverboards went from innovation to commodity in 12 months. Thousands of Chinese factories and overseas importers rushed to market, leading to many malfunctions. Reliable products and brands are now emerging. 1986: First R&D (Japan) 2001: Segway (USA) $5,000 2016: Ninebot Mini (China) $330 CHINA: THE CASE OF HOVERBOARDS 2015: Razer Hovertrax $599
  113. 113. HAX | HARDWARE TRENDS 2016 | PAGE 113 • Most Chinese hardware startups target China first, but an increasing number is global-minded. • Chinese companies (startups and traditional contract manufacturers) represented 30% of the exhibitors at CES in 2016. Ninebot is going global Raised $80m Acquired Segway China is the world leader in consumer drones China’s robotics startups Starting local or global? CHINA: MADE FOR CHINA vs. GLOBAL FIRST
  114. 114. HAX | HARDWARE TRENDS 2016 | PAGE 114 • Thanks to the familiarity and proximity of manufacturing, Chinese investors feel more comfortable with hardware investments than their foreign counterparts. • Chinese software giants like LeTV and Qihoo 360 are making an entry into hardware. The appliance maker Midea announced its planning of 25 smart home products. • The local market is heating up and some Chinese investors are looking abroad for better deals, offering attractive supply chain connections to foreign startups. “Many Chinese startups that shouldn't be funded find ample supply of easy money” Fan Bao Chairman, China Renaissance CHINA: HARDWARE INVESTMENT BOOM “Chinese startups can go to market in 6 month where in the US it would take 2 years” Jenny Lee Managing Partner, GGV Capital
  115. 115. HAX | HARDWARE TRENDS 2016 | PAGE 115 COMPANY PRODUCT FUNDING Codoon Fitness bands $91m Niu Smart e-scooter $80m Mobvoi AI-based smart watches $75m Yuneec Drones $60m Ehang Drones $52m uSens AR/VR controller $26.7m Picooc Smart scales $21m Xgimi Smart projector $16.2m AI Nemo Companion robot $10m TheONE Smart piano $10m CHINA: NOTABLE INVESTMENTS
  116. 116. HAX | HARDWARE TRENDS 2016 | PAGE 116 • Successful product can attract competitors, counterfeits and copycats. • The first protection comes from doing something hard to copy. • Entry barriers can come from the science, software, manufacturing processes, brand or community built around your product. “In China, do not use a US-style NDA. Use a ‘NNN’ agreement covering non- disclosure, non-use and non- circumvention.” Dan Harris
 Lawyer, Harris & Moure Author, China Law Blog CHINA: INTELLECTUAL PROPERTY
  117. 117. HAX | HARDWARE TRENDS 2016 | PAGE 117 0 to 0.x 0.x to 1 ☺☺☺ ☺☺ ☺☺☺ ☺ Education Family Tools Speed Know-how Costs 1 to Many ☺☺☺ ☺ Invention Productization Production Many to All Commercialization ☺☺☺ ☺ Resources Supply chain Know-how Costs Early adopters Crowdfunding Retail channels CHINA: OPPORTUNITY Leveraging the strengths of ecosystems to increase the odds of success.
  118. 118. HAX | HARDWARE TRENDS 2016 | PAGE 118 ABOUT HAX Escape velocity Hardware = People Hardware is eating the world #NoAppForThat De-risk #Empowerment
  119. 119. THE ACCELERATOR VC
 #MEGA-TRENDS #IMPACT #GLOBAL SYNTHETIC BIOLOGYSOFTWARE HARDWARE FOOD BUSINESS
  120. 120. SHENZHEN GLOBAL PRESENCE SANFRANCISCO NEWYORK HAX ACCELERATOR HAX BOOST URBAN-X 2,000+ APPLICANTS PER YEAR
  121. 121. LIFE HEALTH as ROBOTICS INFRA FAB >160 HARDWARE COMPANIES TO DATE 50% 20% 30%
  122. 122. LIFE HEALTH as ROBOTICS INFRA FAB Particle NextThing Nello LumenCache CTY PinPress Voltera WAZER OpenTrons Ourobotics Kniterate Electroloom PinPress Dispatch Simbe Rovenso KEYi Tech Makeblock HabitAware FeetMe Sana BBB SmartFuse Berkeley Ultrasound Prynt Revols Kokoon Nura Motion Metrics Carbon Robotics Giroptic Leap Motion Joy Petcube Nomiku Auroma Bartesian Grobo Livin Farms Opho Alpha Glass Nua FoodMarble Kindara My.Flow Vibease Darma Industrial / Organic
  123. 123. TECHNOLOGY90-111 DAYS $60-100K LAUNCHBUSINESS60 / YEAR HAX ACCELERATOR RETAIL42 DAYS N.A. SALESMARKETING40 / YEAR HAX BOOST +100 COMPANIES IN 2016
  124. 124. HAX | HARDWARE TRENDS 2016 | PAGE 124 SMALL SCALE DEVELOPMENT A WEEK IN SHENZHEN IS LIKE A MONTH ANYWHERE ELSE TO MASS SCALE SHENZHEN OFFERS ACCESS TO THE 
 ULTIMATE SUPPLY CHAIN FROM DEVELOPMENT TO MANUFACTURING
  125. 125. “Most active investor
 in crowdfunded hardware” 5 projects in 2015 in global Top 100 of all time $2.5m$1.1m $1.5m $1.9m $2.2m
  126. 126. 60+ CROWDFUNDED PROJECTS TO DATE $420K AVERAGE RAISE
  127. 127. FULL STACK ENGINEERING, DESIGN & BUSINESS RESOURCE ROBOTICS STRUCTURALMECHANICALMECHATRONICSELECTRICAL SOURCINGDFMBRANDINGDESIGN SUPPLY CHAIN FILMMARKETING PRSTRATEGY FINANCING
  128. 128. HAX | HARDWARE TRENDS 2016 | PAGE 128 TECHCRUNCH | HAX Lean Hardware Series 12 articles | CLICK HERE WIRED | Shenzhen: The Silicon Valley of Hardware 4-parts documentary | PART 1 | PART 2 | PART 3 | PART 4 SLIDESHARE | Free Online Reports | CLICK HERE Hardware Trends, State of Hardware State of Robotics, State of Health Tech
  129. 129. CONTACT US | MAKEIT @ HAX.CO APPLY | WWW.HAX.CO

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