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Hardware Trends 2017

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The latest and greatest of what is happening in IoT, IIOT, AIoT, robotics, consumer & health tech devices, and more.

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Hardware Trends 2017

  1. 1. HAX | HARDWARE TRENDS 2017 | PAGE 1 2017 HARDWARE TRENDS IT’SSTEAMENGINETIME WWW.HAX.CO JULY2017
 
 HAX.CO/HARDWARE-TRENDS
  2. 2. HAX | HARDWARE TRENDS 2017 | PAGE 2 FOREWORD Software is eating the world, 
 and the world is hardware.
 You need both to make it smarter.
 This is our third report. It started as new perspectives on hardware startups were needed, beyond unicorns, Fitbit’s stock price,
 or the latest crowdfunding chaos.
 As investors focused on hardware for the past 5 years
 (>200 investments), we see the ongoing re-invention
 of every physical product category & industry. 
 We hope this report provides a broader perspective
 as to what is happening, and coming next. AUTHORS WRITING LEAD - BENJAMIN JOFFE
 CREATIVE LEAD - VITALY VYAZOVSKY
 
 KEY CONTRIBUTORS
 GENERAL TRENDS - ANANT PATHAK
 CONSUMER - KATE WHITCOMB
 HEALTH - DUNCAN TURNER
 ENTERPRISE - DUNCAN TURNER
 INDUSTRY - JI KE
 CHINA - ZONA LIU
 FINANCING - CYRIL EBERSWEILER HAX | HARDWARE TRENDS 2017 | PAGE 2
  3. 3. HAX | HARDWARE TRENDS 2017 | PAGE 3 WWW.HAX.CO / ABOUT HAX HAX IS A PROGRAM-BASED HARDWARE FUND
 THAT INVESTED IN OVER
 200 GLOBAL STARTUPS / OTHER HAX REPORTS HARDWARE TRENDS 2016
 HARDWARE TRENDS 2015
 THE STATE OF ROBOTICS 2015 / HAX TALKS BUILDING HARDWARE FROM ZERO TO IPO (2017)
 THE RISE OF CONSUMER & SERVICE ROBOTS (2017)
 THE RISE OF GENERATION HEALTH (2017)
 HAX CROWDFUNDING GUIDE (2017) CONTACT US: MAKEIT@HAX.CO HAX | HARDWARE TRENDS 2017 | PAGE 3
  4. 4. HAX | HARDWARE TRENDS 2017 | PAGE 4 Many of the examples 
 used in this report are
 SOSV / HAX investments.
 Notable exceptions are
 unicorns (it’s coming),
 crowdfunding failures,
 and Juicero :) DISCLOSURE ACKNOWLEDGEMENTS The authors thank: • / The many founders 
 we work with, for their insights, • / Our creative team, for taking
 this report to new levels, • / The many more participants
 in the hardware revolution. / It is 2017 and this is 
 just the beginning. HAX | HARDWARE TRENDS 2017 | PAGE 4
  5. 5. HAX | HARDWARE TRENDS 2017 | PAGE 5 AIRE ALPHA GLASS AMBER TECHNOLOGIES
 BABYBE BARTESIAN BBB BEETL BERKELEY ULTRASOUND BLOOM CARV CIRCADIA CRIAMTECH DIABETO DISPATCH ELEPHANT ROBOTICS FEEL FEETME FLAIR FLICKTEK FLOW NEUROSCIENCE FROBOT GARDENSPACE HISENS JAPET JOY KEEN KINDARA KNITERATE KOKOON LEAP LIEF THERAPEUTICS LILU LIVIN FARMS LOOKING GLASS LOVELY MAKEBLOCK MILKSAFE MINDSET MINUT MOJO MOONA MOUSR NOMIKU NURA O2O2 ORENDA PARTICLE PETCUBE PRYNT PYCNO RAY BABY REVOLS SANA SIMBE ROBOTICS SMARTFUSE SMARTSHEPHERD SONICAM TRAINERBOT VOLTERA VUE WAZER YEELIGHT HAX
 STARTUPS
 QUOTED
 INTHIS REPORT WWW.HAX.CO HAX | HARDWARE TRENDS 2017 | PAGE 5
  6. 6. HAX | HARDWARE TRENDS 2017 | PAGE 6 02/ 03/ 04/ 05/ 06/ 07/ 01/ ENTERPRISE CHINA HEALTH INDUSTRY LATE STAGE FINANCING CONSUMER GENERAL TRENDS 8 /TABLEOFCONTENTS 59 120 153 186 203 226 08/ ABOUT SOSV & HAX 237 HAX | HARDWARE TRENDS 2017 | PAGE 6
  7. 7. HAX | HARDWARE TRENDS 2017 | PAGE 7 GENERALTRENDS 01 FROM CONSTRUCTION TO INSURANCE. 02 UNICORNS ARE HARDWARE STARTUPS, 11 ARE FROM CHINA. 03 COMPUTER VISION TO MACHINE LEARNING AND BIG DATA. 04 AND DEVICES MIGHT BECOME TROJAN HORSES FOR INSURANCE. 05 PLACE FOR HARDWARE SECTORS 06 REINVENTED WITH DEEP TECH AND BIG DATA. 07 DESPITE MEDIA REPORTS, MOST CREATORS SHIP. 08 AND HEALS. DIGITAL THERAPIES COMPETE WITH PHARMA. 09 WITH SENSORS, DATA AND ROBOTS. EXECUTIVESUMMARY 12 INCLUDE MICRO-CAP IPOS, REG A+, RMS, AND MORE. 10 DOMESTIC STARTUPS, WITH A FEW GLOBAL-MINDED PLAYERS. 11/ “SILICON VALLEY FOR HARDWARE” CHINA LATESTAGEFINANCING HAX | HARDWARE TRENDS 2017 | PAGE 7
  8. 8. HAX | HARDWARE TRENDS 2017 | PAGE 8 GENERAL
 TRENDS INVESTMENT,
 COMMUNITIES
 SECURITY & MORE01/ HAX | HARDWARE TRENDS 2017 | PAGE 8
  9. 9. HAX | HARDWARE TRENDS 2017 | PAGE 9 STEAM
 ENGINE
 TIME ENTERING 
 A GOLDEN AGE
  10. 10. HAX | HARDWARE TRENDS 2017 | PAGE 10 STEAM ENGINE TIME
 NEWCOMEN ATMOSPHERIC 
 ENGINE
 1712 JAMES WATT
 STEAM ENGINE
 1781 STEAM ENGINES HAD BEEN AROUND FOR A WHILE. BUT HIGH COST AND POOR PERFORMANCE LIMITED ITS USE
 TO PUMPING WATER IN MINES JAMES WATT MADE IT
 CHEAPER & MORE EFFICIENT.
 IT BECAME VERSATILE.
 
 STEAM THEN POWERED MANY INDUSTRIES SUCH AS TEXTILE, TRANSPORTATION, AND… THE TIMES ‘AEOLIPILE’
 BY HERO OF ALEXANDRIA
 1ST CENTURY A.D. “PENNY” 
 ROTARY PRESS
 1843 KOENIG 
 PRINTING PRESS,
 1814 STARTED AS
 PENNY PRESS
 1851 KEY IMPROVEMENTS
 STARTED A REVOLUTION
  11. 11. HAX | HARDWARE TRENDS 2017 | PAGE 11 APERFECT
 STORMIN
 HARDWARE CHEAPER 
 COMPONENTS ONBOARD
 CPU RETAILERS
 FOR HIGH-TECH SMALL BATCH
 MANUFACTURING 
 MICRO-CAPS,
 REG A+… CLOUD CROWDFUNDING
 & PRE-SALES SOCIAL MEDIA
 TO TEST DEMAND SMARTPHONES NEW & BETTER
 PROTOTYPING
 TOOLS
  12. 12. HAX | HARDWARE TRENDS 2017 | PAGE 12 NEW EXPECTATIONS
 PERSONALIZATION, 
 SPECIALIZATION
 RISING COMPLEXITY 
 HIGHER DEFENSIBILITY 
 WITH DEEP TECH CUSTOMERS KEEN 
 BUT WARY 
 WANT TO AVOID DEPENDENCIES AND DEVICE OBSOLESCENCE
 DIVERGENCE NOW
 NO UNIFYING HUB OR TECHNOLOGY
 CONVERGENCE LATER? 01/ 02/ 03/ 04/ 05/ SMARTDEVICESMULTIPLY
 THANKSTOLOWERBARRIERS OFENTRY SEGMENTATION
 LOWER BARRIERS 
 & MARKET GROWTH MAKE SOME NICHES VIABLE FOR NEW ENTRANTS
  13. 13. HAX | HARDWARE TRENDS 2017 | PAGE 13 STARTUP AVERAGE
 FROM IDEA TO IPO
 8 YEARS R&D PROTOTYPE PROTOTYPE PRODUCTION ONLINE GLOBAL IPOOFFLINE PRODUCTIZING RETAIL YEAR 01 YEAR 02 YEAR 03 YEAR 04 YEAR 05 YEAR 06 YEAR 07 YEAR 08 COULDWEDOITIN4ORLESS
 WITHTHERIGHTSUPPORT? DISTINCT AND TIME-INTENSIVE PHASES R&D IPO HARDWARE SCALING 
 IS MORE LINEAR
 THAN SOFTWARE HAX | HARDWARE TRENDS 2017 | PAGE 13
  14. 14. HAX | HARDWARE TRENDS 2017 | PAGE 14 MANY ARE OVER 
 10 YEARS OLD 2002 IPO 2007 IPO 2005 PRIVATE 2009 ACQUIRED 2009 ACQUIRED 2009 PIVOT 2009 PRIVATE 1994 IPO & PIVOT 2009 CHARITY 1999 BANKRUPT SMARTDEVICES
 PIONEERS
 CELEBRATE
 ANNIVERSARY
  15. 15. HAX | HARDWARE TRENDS 2017 | PAGE 15 FALLEN SOLDIERS 
 OF THE INDUSTRIAL AGE MANY NEW THINGS
 CAN BE MADE DEMAND WILL DECIDE
 ON SURVIVORS
  16. 16. HAX | HARDWARE TRENDS 2017 | PAGE 16 TEAM ALIGNMENT & COMMUNICATION POOR POSITIONING TECHNICAL FEASIBILITY FEATURE CREEP NEGLECT PR & MARKETING LACK OF DEMAND HANDS-OFF MANUFACTURING SLOW PROTOTYPING UNPREPARED FOR RETAIL BAD TERMS FOR CASH FLOW POOR SKILLS FOR FINANCING LACK OF GRIT WHATKILLS
 HARDWARE
 STARTUPS? MOSTLY, 
 THEMSELVES
 
 MANY SNAKES
 FEW LADDERS HAX | HARDWARE TRENDS 2017 | PAGE 16
  17. 17. HAX | HARDWARE TRENDS 2017 | PAGE 17 Clarify
 Responsibilities One founder
 full time on business Plan & Communicate Internally Cut features Track runway Find best resources
 at each step Communicate externally Ask for advice Follow up Validate demand EXTERNALLY Find leads HOW
 HARDWARE
 STARTUPS
 SUCCEED Show commitment
  18. 18. HAX | HARDWARE TRENDS 2017 | PAGE 18 INVESTMENT HAX | HARDWARE TRENDS 2017 | PAGE 18
  19. 19. HAX | HARDWARE TRENDS 2017 | PAGE 19 01/ 02/ 03/ MORE INVESTORS 
 & KNOWLEDGE INVESTORS
 GETSAVVY
 ABOUT
 HARDWARE HARDWARE INVESTMENT SPREADING 
 MANY FIRMS DEDICATE A PARTNER
 SPECIALISTS EMERGING 
 FOR PRE-SEED, SEED, GROWTH… 
 FOR ROBOTICS, HEALTH, ETC.
 INVESTORS EXPECT MORE
 CONSUMER = PREFERRED WITH SAAS
 HEALTH TECH = NEEDS PROOF OR FDA
 B2B = NEEDS CUSTOMERS HAX | HARDWARE TRENDS 2017 | PAGE 19
  20. 20. HAX | HARDWARE TRENDS 2017 | PAGE 20 HARDWARE
 INVESTOR
 CHECKLIST
 UNDERSTAND MANUFACTURING CONSTRAINTS
 INTRODUCE OTHER HARDWARE FOUNDERS FOR GUIDANCE BRING EXPERIENCE IN LAUNCHING A PRODUCT INTRODUCE CUSTOMERS
 HELP ANTICIPATE COSTS & RUNWAY
 INTRODUCE RELEVANT FOLLOW-ON INVESTORS “If your prototype is ugly, people think you have nothing.
 If it’s pretty they think you’re ready to ship.
 Yet you might still be a year away… if you know what you’re doing.” ARE YOU ABLE TO…? BENJAMIN JOFFE, PARTNER, HAX HAX | HARDWARE TRENDS 2017 | PAGE 20
  21. 21. HAX | HARDWARE TRENDS 2017 | PAGE 21 HAX (SOSV)
 $150M ACCELERATOR 
 & SEED FUND BOLT $80M SEED FUND LEMNOS LABS $50M SEED FUND ROOT / VENTURES $30M SEED FUND HARDWARE CLUB $28M SEED FUND PLAYGROUND
 $300M FUND ECLIPSE VC
 $433M FUND SOME SPECIALISTS 
 EMERGING GRISHIN ROBOTICS $100M SEED FUND
  22. 22. HAX | HARDWARE TRENDS 2017 | PAGE 22 ASIA
 
 CHN - HAX
 HKG - BRINC, READWRITE LABS
 JPN - MAKERS BOOTCAMP
 KOR - SPARKLABS, N15
 IND - REVXX, IKP EDEN
 EUROPE AUT - HARDWARE TRIBE
 EST - BUILDIT
 GBR - STARTUPBOOTCAMP
 GER - HARDWARE.CO
 ITA - INDUSTRIO USA SF - HAX
 SF - HIGHWAY1
 SF - READWRITE LABS
 LA - MAKE IN L.A.
 PGH - ALPHALAB GEAR FROM PROTOTYPE TO PRODUCT HARDWARE ACCELERATORS WANTTOSOLVE THEFIRSTSTEPS FROM BOOTCAMPS TO MONTHS-LONG PROGRAMS
 FROM FREE SUPPORT TO INVESTMENT HAX | HARDWARE TRENDS 2017 | PAGE 22
  23. 23. HAX | HARDWARE TRENDS 2017 | PAGE 23 U.S.VCINVESTMENTINIOT SOURCE: PITCHBOOK DATA, STEVE MYERS, CEO, MINDTRIBE *AS OF NOV 2016 0 300 600 900 1,200 1,500 0 50 100 150 200 250 2012 2013 2014 2015 2016* Deal Count Invested ($M) 1,2731,106 822 560536 174 236 197 136 9090 136 197 236 174 HAX | HARDWARE TRENDS 2017 | PAGE 23
  24. 24. HAX | HARDWARE TRENDS 2017 | PAGE 24 INVESTMENTINROBOTICS SOURCES: CB INSIGHTS, THE ROBOT REPORT, JUNE 2017 0 500 1,000 1,500 2,000 2011 2012 2013 2014 2015 2016 1,950 587 273176191155 Invested ($M) HAX | HARDWARE TRENDS 2017 | PAGE 24
  25. 25. HAX | HARDWARE TRENDS 2017 | PAGE 25 0 250 500 750 1,000 1,250 1,500 Xiaomi MagicLeap Ofo Nio Mobike Meizu BloomEnergy View Peloton ProteusHealth Essential Royole SigFox Zoox Mobvoi Plenty Carbon DesktopMetal Lytro Roku Ring 3DR Razer Njoy TinkLabs Anki Velodyne Devialet Thalmic Quanergy RethinkRobotics AeroFarms UBTech Sphero Juicero DJI Roobo QUADRUPLE NUMBER OF STARTUPS
 WITH >$100M FUNDING SINCE 2014 
 CHINA DOMINATES THE TOP SPOTS 4X‘SECONDWAVE’REACHESSCALE X US$100 MILLION Source: Crunchbase, media reports
 Note: Jawbone (raised $900M) filed for bankruptcy 4X SINCE 2014
 (FROM 8 TO 36)
 
 
 
 1/5 FROM CHINA
 (INCLUDING 4 IN TOP 5) HAX | HARDWARE TRENDS 2017 | PAGE 25
  26. 26. HAX | HARDWARE TRENDS 2017 | PAGE 26 XIAOMI 
 & ‘MINI-MI’ ACQUIREDIPO OTHER 
 CHINESE WESTERN 9% 2/3 HARDWARE
 UNICORNS 
 OFGLOBAL
 BLESSING
 FROM CHINA 18
  27. 27. HAX | HARDWARE TRENDS 2017 | PAGE 27 SOFTWAREGIANTS
 BUILD&BUY HARDWARE HAX | HARDWARE TRENDS 2017 | PAGE 27
  28. 28. HAX | HARDWARE TRENDS 2017 | PAGE 28 MOREMNCSINVEST
 INHARDWARE STARTUPS BEAM SUNTORY INVESTED IN COCKTAIL ROBOT BARTESIAN SAMSUNG INVESTED IN SOUS-VIDE COMPANY NOMIKU
  29. 29. HAX | HARDWARE TRENDS 2017 | PAGE 29 BY TECH COMPANIES 
 TECHNOLOGY IS OFTEN THE #1 MOTIVATION 
 OTHERS CAN BE ADDING SALES, OR ACQUIRING DATA OR TEAM SOFTBANK ACQUIRED BOSTON DYNAMICS FROM GOOGLE
 New expectations? Buyer Company Value Amazon Kiva $775M Apple Beats $3B Apple PrimeSense $350M Apple Beddit n.a. Facebook Oculus $2B Fitbit Coin n.a. Fitbit Pebble $28M Fitbit Vector $15M Google Nest $3.2B Google Dropcam $555M Intel Mobileye $15B Intel Recon $175M Intel Basis $100M Nokia Withings $191M Omron Adept $200M Samsung SmartThings $200M Softbank Arm $32B Softbank Boston Dynamics n.a. Softbank Shaft n.a. Stratasys Makerbot $400M Teradyne Universal Robots $285M Wanfeng Tech Paslin $300M RECENT ACQUISITIONS MORE
 M&A
  30. 30. HAX | HARDWARE TRENDS 2017 | PAGE 30 RECENT ACQUISITIONS BY NON—TECH 
 COMPANIES 
 MOST SEEK
 PRODUCT LINES
 AND DATA SOURCES MORE
 M&A J&J BOUGHT ILLUMASK
 LIGHT THERAPY MASK FOR ACNE Buyer Company Value Electrolux Anova $250M Fossil Misfit $260M General Motors Cruise $1B Johnson & Johnson IlluMask n.a. Mars Whistle $117M Mattel Fuhu $21.5M Midea Kuka $3.9B KUKA IS NOW
 PART OF CHINA’S MIDEA MARS ACQUIRED WHISTLE
 FOR ITS DOGS ACTIVITY DATA HAX | HARDWARE TRENDS 2017 | PAGE 30
  31. 31. HAX | HARDWARE TRENDS 2017 | PAGE 31 THREE EXOSKELETON COMPANIES
 WENT PUBLIC IN 2014SNAPSHOTOFSELECTPUBLIC HARDWARECOMPANIES FORTUNESVARY STOCK VARIATION SINCE IPO -1 -0.5 0 0.5 1 1.5 2 Ekso Cyberdyne Rewalk -88% 77%83% -1 -0.5 0 0.5 1 1.5 2 iRobot Square GoPro Fitbit -83%-75% 86% 176%
  32. 32. HAX | HARDWARE TRENDS 2017 | PAGE 32 HARDWARE
 STARTUP
 CHALLENGES HAX | HARDWARE TRENDS 2017 | PAGE 32
  33. 33. HAX | HARDWARE TRENDS 2017 | PAGE 33 CROWDFUNDING 
 IS THE EXCEPTION 
 YOU GET THE MONEY FIRST! DIRECT PRE-SALES
 MAINTAINS MOMENTUM
 WITH MARKETING UNTIL YOU SHIP MAKING THINGS
 COST MONEY
 NEGATIVE CASH FLOW 
 SLOWS YOU DOWN
 (OR KILLS YOU) PEOPLE, PAPERWORK
 & PATIENCE
 SELLING OFFLINE
 TAKES TIME FINANCING&CASH FLOWAREKEY
 FORHARDWARE CASH FLOW IS KING
 WHEN ARE SUPPLIERS,
 RETAILERS… AND YOU,
 GETTING PAID? HAX | HARDWARE TRENDS 2017 | PAGE 33
  34. 34. HAX | HARDWARE TRENDS 2017 | PAGE 34 “Manufacturing is capital intensive. 
 Cash flow improves if you credit your assembly.
 Our manufacturer gave us special payment terms.” FINANCING THE FIRST 
 PRODUCTION RUNS IS 
 ALWAYS A CHALLENGE “ ALEX NESKIN, COFOUNDER / PETCUBE
 SMART DEVICES FOR PETS HAX | HARDWARE TRENDS 2017 | PAGE 34
  35. 35. HAX | HARDWARE TRENDS 2017 | PAGE 35 STARTUPS 
 GO HIGH-TECH,
 INCREASE DEFENSIBILITY MAKERS 
 KEEP FOCUS ON DIY, FUN
 & EDUCATION, HAX SHIFTED ATTENDANCE FROM MAKERFAIRE TO CES STARTUPS & MAKERS
 GROW FURTHER APART HAX | HARDWARE TRENDS 2017 | PAGE 35
  36. 36. HAX | HARDWARE TRENDS 2017 | PAGE 36 GLOBALIZATION FORCES ‘MAKER’ STARTUPS
 TO CHANGE 3DR DROPS D.I.Y. DRONES
 FOR CONSUMER DRONES.
 OUTPACED, THEY FOCUS NOW
 ON B2B DRONE SOFTWARE NYC-BASED 3D PRINTING
 COMPANY GETS ACQUIRED
 THEN RELOCATES PRODUCTION
 FROM NYC TO CHINA HAX | HARDWARE TRENDS 2017 | PAGE 36
  37. 37. HAX | HARDWARE TRENDS 2017 | PAGE 37 ECOSYSTEM HAX | HARDWARE TRENDS 2017 | PAGE 37
  38. 38. HAX | HARDWARE TRENDS 2017 | PAGE 38 EXHIBITORS PER COUNTRY STRONG: FRANCE & KOREA
 WEAK: JAPAN & GERMANY
 HAX: 83 STARTUPS! USA CHINA FRANCE TAIWAN SOUTH KOREA HONG KONG HAX CANADA UK JAPAN GERMANY ISRAEL 0 450 900 1350 1800 CES2017:
 APROXYFOR HARDWARE INNOVATION
  39. 39. HAX | HARDWARE TRENDS 2017 | PAGE 39 STARTUPS ARE BOOMING 0 150 300 450 600 2012 2013 2014 2015 2016 2017 EXHIBITOR BOOTHS IN EUREKA PARK
 (EARLY STAGE STARTUP ZONE) CES2017:
 APROXYFOR HARDWARE INNOVATION
  40. 40. HAX | HARDWARE TRENDS 2017 | PAGE 40 02/ 03/ 04/ 01/ FRENCH PRESIDENT EMMANUEL MACRON 
 AT THE OPENING OF STATION F
 THE WORLD'S LARGEST INCUBATOR,
 WITH 1,000 STARTUP
 
 PROJECT FINANCED BY FRENCH TECH BILLIONAIRE XAVIER NIEL FOR $280M HOW FRANCE BECAME
 A TECH POWERHOUSE
 WITH “FRENCH TECH” IN LESS THAN 5 YEARS! ENTREPRENEURS LEAD
 INVEST IN & SUPPORT ECOSYSTEM HARDWARE CHAMPIONS
 SIGFOX, DEVIALET, ETC. ‘FRENCH TECH’
 GLOBAL BRANDING EFFORT CORPORATES OPEN UP
 WELCOME STARTUP TALENT HAX | HARDWARE TRENDS 2017 | PAGE 40
  41. 41. HAX | HARDWARE TRENDS 2017 | PAGE 41 BANGALORE, LONDON
 PARIS, TEL AVIV
 SF, NYC OFFLINE HARDWARE COMMUNITIES KEEPGROWING APPLIEDSINGULARITY IOTLONDON SFHARDWARE IOTPARIS SFIOT IOTCENTRALNYC HARDWIREDNYC IOTISRAEL NYCHWSTARTUP IOTSF/SV 11,757 10,720 6,657 5,942 5,941 5,596 5,481 4,799 4,373 3,421 Jun 2017 Jun 2016 Mar 2015 MEMBERSHIP OF THE WORLD’S TOP 10 HARDWARE/IOT MEETUPS
  42. 42. HAX | HARDWARE TRENDS 2017 | PAGE 42 ONLINE HARDWARE RESOURCES 
 MULTIPLY POPULAR ONLINE
 RESOURCES ON HARDWARE HACKSTER.IO
 COMMUNITY OF 200,000 HARDWARE LEARNERS, ENGINEERS & MAKERS (65% PRO, 35% HOBBYIST). ACQUIRED BY AVNET.
 
 MAKE
 DIY PROJECTS AND IDEAS FOR MAKERS
 
 
 FICTIV
 ONLINE 3D PRINTING & CNC MACHINING SERVICES
 
 
 SILICON VALLEY ROBOTICS
 INFORMATION AND EVENTS
 ON THE LATEST IN ROBOTICS
 
 
 HACKADAY
 NEWS AND HACKS ABOUT HARDWARE
 
 
 HARDWARE TREK
 COLLABORATIVE PLATFORM FOR HARDWARE INNOVATION
 
 
 HARDWARE MASSIVE
 GLOBAL COMMUNITY PLATFORM FOR HARDWARE STARTUPS
  43. 43. HAX | HARDWARE TRENDS 2017 | PAGE 43 DEFENDING
 INNOVATION
 WITHDATA
 &MORE HAX | HARDWARE TRENDS 2017 | PAGE 43
  44. 44. HAX | HARDWARE TRENDS 2017 | PAGE 44 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 “HARDWARE:
 DATAACQUISITION
 TOOLFORA.I. Hardware can be
 a data acquisition
 strategy for A.I. companies.”
 “Private data gives
 a competitive advantage
 over public datasets.” NILS MATTISSON, CEO, MINUT
 CAMERA-FREE HOME SECURITY HAX | HARDWARE TRENDS 2017 | PAGE 44
  45. 45. HAX | HARDWARE TRENDS 2017 | PAGE 45 DEALINGWITH
 COPYCATS
 SOFTWARE
 OFTEN THE STRONGEST DEFENSE TRADEMARK
 A SIMPLE & COST-EFFECTIVE PROTECTION PATENTS
 COSTLY & HARD TO DEFEND AT FIRST, USEFUL LATER CERTIFICATIONS
 GIVES A STRONG LEAD IN AN AREA. ESPECIALLY FDA. DATA
 A STRONG EDGE OVER PUBLIC DATA SOURCES COMMUNITY
 CONTRIBUTE FAME, DATA OR CODE REPUTATION
 A LONG-TERM DIFFERENTIATOR HAX | HARDWARE TRENDS 2017 | PAGE 45
  46. 46. HAX | HARDWARE TRENDS 2017 | PAGE 46 It's easy to copy hardware.
 It's hard to copy software.”
 
 “Building a strong brand,
 acquiring an audience early,
 patents can also help defend 
 against copycats.”
 
 Alex Neskin
 Cofounder, Petcube
 Smart Devices For Pets “ HAX | HARDWARE TRENDS 2017 | PAGE 46
  47. 47. HAX | HARDWARE TRENDS 2017 | PAGE 47 MAR 2017 - CLOUDPETS CONNECTED BEAR LEAKED KIDS’S RECORDINGS + INFO OF HUNDREDS OF THOUSANDS
 OF CUSTOMERS. SEP 2016 - MIRAI BOTNET ATTACKS VIA MILLIONS OF IOT DEVICES. 80% WERE DVRS AND WEBCAMS STILL USING FACTORY-SET PASSWORDS. 2015 - CHRYSLER HACK TRIGGERS RECALL OF
 1.4M VEHICLES JUN 2016 - INSULIN PUMP VULNERABILITIES LEAD
 TO WARNING OF
 114,000 PATIENTS JUN 2017 - 30,000
 SMART FRIDGES INFECTED BY THE
 PIED PIPER VIRUS HACKERSTHREATEN
 YOURCAR,YOURHOME…
 ANDYOURINSULINPUMP
  48. 48. HAX | HARDWARE TRENDS 2017 | PAGE 48 TECH
 HELL? OUR FUTURE HACKERS CONTROLLING 
 OUR DEVICES AND RANSOMING
 WITH CRYPTOCURRENCIES? HAX | HARDWARE TRENDS 2017 | PAGE 48
  49. 49. HAX | HARDWARE TRENDS 2017 | PAGE 49 INSURERS & IOT
  50. 50. HAX | HARDWARE TRENDS 2017 | PAGE 50 NILS MATTISSON / CEO, MINUT
 CAMERA-FREE HOME SECURITY “ CONNECTEDDEVICES
 ATTRACTINSURERS All major insurers look at IoT.
 The focus is mostly on prevention of damages
 (and thereby increased margins) rather than precise pricing» HAX | HARDWARE TRENDS 2017 | PAGE 50
  51. 51. HAX | HARDWARE TRENDS 2017 | PAGE 51 DIFFERENT
 MOTIVATIONS EXPLORATION OF
 BUSINESS MODELS PREVENTION
 AVOID DAMAGES PRECISION
 TAILOR TO NEEDS PROOF
 VERIFY CLAIM GIVEAWAYS
 
 
 DISCOUNTS
 
 
 RENTAL
 
 
 USAGE-BASED CONNECTED
 DEVICES
 ATTRACT
 INSURERS HAX | HARDWARE TRENDS 2017 | PAGE 51
  52. 52. HAX | HARDWARE TRENDS 2017 | PAGE 52 USAGE-BASED
 CAR INSURANCE PROGRESSIVE
 
 USES OBD SYSTEM
 BY ZUBIE SMOKE ALARM
 FOR FREE LIBERTY MUTUAL
 
 FREE NEST PROTECT,
 AND 5% POLICY REBATE HOME SECURITY
 DISCOUNT AMERICAN FAMILY $30 OFF THE RING
 SMART DOOR BELL,
 AND POLICY REBATES SMART TOOTHBRUSH
 FOR FREE + USAGE- BASED REBATES BEAM DENTAL FOR THE ENTIRE FAMILY, OFFERS USAGE-BASED REBATES SOURCE: INTERNET OF BUSINESS ACTIVITY TRACKER
 FOR FREE JOHN HANCOCK WANTS CUSTOMERS TO STAY HEALTHY CONNECTEDDEVICES
 ATTRACTINSURERS
  53. 53. HAX | HARDWARE TRENDS 2017 | PAGE 53 2015 SMART TOOTHBRUSH 2016 . INSURANCE PLANS
 . FLOSS, TOOTHPASTE 
 SUBSCRIPTION . FIND & RATE DENTISTS THE BIRTH OF PURE
 IOT-POWERED
 INSURERS? IOT:
 TROJANHORSE
 FORINSURANCE
 …ANDMORE
  54. 54. HAX | HARDWARE TRENDS 2017 | PAGE 54 FUTURE OPPORTUNITIES
 FORINSURANCE 01/ SELF-DRIVING VEHICLES
 02/ SHARING ECONOMY
 03/ SMART HOME
 04/ HOME ENERGY STORAGE SOLUTIONS HAX | HARDWARE TRENDS 2017 | PAGE 54
  55. 55. HAX | HARDWARE TRENDS 2017 | PAGE 55 WHERETOBUILD A HARDWARESTARTUP? THE WORLD OF HARDWARE
 RESOURCES IS NOT FLAT
 HAX | HARDWARE TRENDS 2017 | PAGE 55
  56. 56. HAX | HARDWARE TRENDS 2017 | PAGE 56 ISSILICON VALLEY
 HOSTILEFOR EARLYSTAGE STARTUPS? HIGH SALARIES & COST
 OF LIVING, RECRUITING DIFFICULTIES & LOW RETENTION MAKE IT HARDER “It's easier to start a company
 outside the Valley than in it.” SERGEY BRIN
 PRESIDENT, ALPHABET
 CO-FOUNDER, GOOGLE “
  57. 57. HAX | HARDWARE TRENDS 2017 | PAGE 57 NON-VALLEY LOCATIONSCAN HAVENOTABLE ADVANTAGES LOWER RENTS, SALARIES, EASIER HIRING AND TAX ADVANTAGES CREATE ARBITRAGE OPPORTUNITIES STARTING ABROAD 
 CANADA: UP TO 35% TAX CREDIT ON R&D FRANCE: 30% TAX CREDIT ON R&D AUSTRALIA: UP TO 43.5% TAX CREDIT ON R&D STARTING RURAL SPRITE ROBOTICS RAN A YEAR 
 WITH $1,000/FOUNDER/MONTH 
 IN CHAMPAIGN, ILLINOIS. 
 HIRED MSC & PHDS FROM UNIVERSITY OF ILLINOIS. Singapore, Malaysia, China, Hong Kong
 also offer various advantages to startups HAX | HARDWARE TRENDS 2017 | PAGE 57
  58. 58. HAX | HARDWARE TRENDS 2017 | PAGE 58 ISSILICON VALLEY
 SUITABLEFOR
 HARDWARE STARTUPS? COSTS, KNOW-HOW AND
 LACK OF SUPPLY CHAIN
 ADD TO THE CHALLENGE “Founders should seek world-class resources.
 Their R&D, prototyping, production, financing
 and sales could take place
 in five different locations.
 
 For hardware, prototyping and production often mean Shenzhen.” BENJAMIN JOFFE
 PARTNER, HAX “ HAX | HARDWARE TRENDS 2017 | PAGE 58
  59. 59. HAX | HARDWARE TRENDS 2017 | PAGE 59 CONSUMER 
 DEVICES 02/ HAX | HARDWARE TRENDS 2017 | PAGE 59
  60. 60. HAX | HARDWARE TRENDS 2017 | PAGE 60 PRODUCTS
 MORE SCIENCE & SOFTWARE FOR DIFFERENTIATION & DEFENSIBILITY
 CROWDFUNDING 
 STILL PATH OF CHOICE TO LAUNCH CONSUMER HARDWARE
 INVESTORS 
 OFTEN WAIT FOR PROOF OF DEMAND & SALES. MOVING TO B2B DISTRIBUTION 
 RETAILERS GET SAVVY, DEDICATE BUYERS & SHELVES
 
 
 CONSUMERS MATURING QUESTION UTILITY, COMPATIBILITY, DRMS, OBSOLESCENCE
 NEW BUSINESS MODELS CONSUMABLES, SUBSCRIPTION. SELLING DATA UNPROVEN TRENDS 
 IN CONSUMER
 TECH EXPLOSION 
 IN VARIETY & COMPLEXITY
  61. 61. HAX | HARDWARE TRENDS 2017 | PAGE 61 WEARABLES GO HIGH TECH OR DIE? HAX | HARDWARE TRENDS 2017 | PAGE 61
  62. 62. HAX | HARDWARE TRENDS 2017 | PAGE 62 SMART
 DEVICE
 FEVER
 COOLING
 DOWN Startups like Hello and Fitbit sold investors on hardware as a data pool, but failed to deliver. It's hard to find a model that investors like.”
 “Negotiations with manufacturer are tough, and retailers are more careful in terms of sales in.”
 “More positive, tools to make decisions with data for product and marketing have multiplied.” INVESTORS, MANUFACTURERS, RETAILERS ARE MORE CAUTIOUS CLEMENT PERROT, 
 CEO, PRYNT
 TURNS PHONES INTO
 INSTANT CAMERAS “ HAX | HARDWARE TRENDS 2017 | PAGE 62
  63. 63. HAX | HARDWARE TRENDS 2017 | PAGE 63 DEATHOF WEARABLES:
 VASTLY EXAGGERATED? INVESTMENT SHIFTS
 FROM WELLNESS
 TO MEDICAL-GRADE DEVICES
  64. 64. HAX | HARDWARE TRENDS 2017 | PAGE 64 THE FIRST GENERATION 
 OF SMART WATCHES 
 AND BANDS IS ‘DONE’ THE WINNERS ARE
 APPLE, FITBIT, SAMSUNG
 AND… XIAOMI WITH
 ITS LOW-COST BANDS HAX | HARDWARE TRENDS 2017 | PAGE 64
  65. 65. HAX | HARDWARE TRENDS 2017 | PAGE 65 FITBIT IPO MISFIT ACQ. BY FOSSIL $260M WITHINGS ACQ. BY NOKIA $190M PEBBLE ACQ. BY FITBIT $23M BASIS ACQ. BY INTEL $100M THE FIRST GENERATION OF
 SMART WATCHES & BANDS 
 IS ‘DONE’ NO MAJOR INDEPENDENT PLAYER LEFT HAX | HARDWARE TRENDS 2017 | PAGE 65
  66. 66. HAX | HARDWARE TRENDS 2017 | PAGE 66 PRODUCT REINVENTION 
 WITH
 DEEP TECH 01/ 02/ 03/ 04/ 05/ CONNECTED
 SMART
 PERSONALIZED
 SPECIALIZED
 INTELLIGENT
 FROM CONNECTED TO INTELLIGENT
  67. 67. HAX | HARDWARE TRENDS 2017 | PAGE 67 RE-INVENTION 
 WITH DEEP TECH EXAMPLE: AUDIO PRODUCTS PRODUCT DESCRIPTION IMPROVEMENT TECHNOLOGY FIELD APPLE AIRPODS FULL WIRELESS EARPHONES CONNECTED TELECOM BRAGI FULL WIRELESS AUDIO CONNECTED TELECOM HERE AUGMENTED AURAL REALITY’ INTELLIGENT SIGNAL PROCESSING KOKOON HEADPHONES FOR SLEEP SPECIALIZED NEUROSCIENCE + ML MINDSET HEADPHONES FOR FOCUS SPECIALIZED NEUROSCIENCE + ML NURA AUTO-TUNING HEADPHONES PERSONALIZED BIOLOGY + SIGNAL PROCESSING REVOLS CUSTOM-FIT EARPHONES PERSONALIZED MATERIALS SCIENCE
  68. 68. HAX | HARDWARE TRENDS 2017 | PAGE 68 ORENDA’S COFFEE MACHINE
 CAN ANALYSE YOUR TASTE REVOLS CUSTOM FIT EARPHONES RAISED $2.5M ON KS NURA’S HEADPHONES
 TUNE TO YOUR HEARING RAISED $5M + $1.8M KS SENSING, SOFTWARE & MATERIALS
 AFTER-MARKET CUSTOM-FIT USER PREFERENCE DATA
 DRIVES MORE REVENUE
 BETTER LTV FROM CUSTOMERS 01/ 02/AFTER-MARKET CUSTOMIZATION SOLVES BESPOKE PRODUCTION PERSONALIZED
 IS THE NEW NORMAL HAX | HARDWARE TRENDS 2017 | PAGE 68
  69. 69. HAX | HARDWARE TRENDS 2017 | PAGE 69 SMART 
 HOME DEVICE DIVERGENCE
 BEFORE CONVERGENCE? HAX | HARDWARE TRENDS 2017 | PAGE 69
  70. 70. HAX | HARDWARE TRENDS 2017 | PAGE 70 SINGLE- PURPOSE DEVICES DOMINATE SMART PLATFORMS ARE LAGGING Kate Whitcomb
 Program Director 
 HAX Growth Consumer hits today 
 are all single-purpose products, 
 not part of a suite.”“
  71. 71. HAX | HARDWARE TRENDS 2017 | PAGE 71 EVERYTHING IS SMART BUT STANDARDS LAG SMART
 HOME WILL VOICE LIKE ALEXA
 BECOME THE NEW HUB
 FOR THE HOME? HAX | HARDWARE TRENDS 2017 | PAGE 71
  72. 72. HAX | HARDWARE TRENDS 2017 | PAGE 72 VOICEASSISTANTS WILL VOICE TIE UP ALL SMART DEVICES? HAX | HARDWARE TRENDS 2017 | PAGE 72
  73. 73. HAX | HARDWARE TRENDS 2017 | PAGE 73 VOICEASSISTANTS
 AREBOOMING AMAZON ECHO, TAP, DOT,
 SHOW, REMOTE & DASH WAND APPLE HOMEPOD GOOGLE HOME INVOKE BY HARMAN/KARDON
 WITH MICROSOFT CORTANA TODAY
 AMAZON Alexa
 APPLE Siri
 GOOGLE Assistant
 MICROSOFT Cortana
 SAMSUNG Viv
 ALIBABA Genie
 BAIDU Little fish
 TENCENT Xiaowei AMAZON LEADS WITH
 OVER 15M UNITS SOLD 
 NEXT
 SONY?
 NINTENDO?
 XIAOMI? HAX | HARDWARE TRENDS 2017 | PAGE 73
  74. 74. HAX | HARDWARE TRENDS 2017 | PAGE 74 NEST
 THERMOSTAT PHILIPS HUE
 LIGHT ECOBEE
 SWITCH BELKIN
 OUTLET KEEN
 VENT SAMSUNG
 HUB AUGUST
 LOCK RING
 VIDEO DOOR BELL FITBIT
 FITNESS TRACKER DROPCAM
 CAMERA HYDRAO
 SHOWER HEAD SAMSUNG
 ROBOTIC VACUUM DEVICES COMPATIBLE
 WITH ALEXA
 VOICE SERVICES MULTIPLY FROM APPS TO VOICE:
 A NEW PLATFORM WILL IT HELP
 SMART DEVICES
 TAKE OFF?
  75. 75. HAX | HARDWARE TRENDS 2017 | PAGE 75 HUAWEI MATE 9 PHONE HTC U11 PHONE LG FRIDGE C BY GE SOL
 LIGHT ‘NATIVE’
 ALEXA APP
 SPREADS
 TOO BRANDS ADD
 THE ALEXA APP
 INTO PRODUCTS DASHBOT BY NEXT THING CO.
 CAR ASSISTANT FORD
 CAR ASSISTANT
  76. 76. HAX | HARDWARE TRENDS 2017 | PAGE 76 DESIRE FOR QUALITY
 
 PRO-LEVEL RESULTS
 AT HOME LOOKING FOR
 RECURRING REVENUE
 
 WITH CONSUMABLES & SUBSCRIPTIONS 01/ 02/ KITCHEN 
 TECH PROFESSIONAL PREPARATION AT HOME
  77. 77. HAX | HARDWARE TRENDS 2017 | PAGE 77 KITCHEN 
 TECH JUICERO COLD-PRESS JUICER RAISED $118.5M BARTESIAN COCKTAIL MACHINE INVESTED BY BEAM SUNTORY ORENDA HOME BARISTA NOMIKU
 SOUS-VIDE CIRCULATOR INVESTED BY SAMSUNG
  78. 78. HAX | HARDWARE TRENDS 2017 | PAGE 78 PHOTO: BLOOMBERG JUICERO & PR How A Dream For Investors
 Turned Into A PR Nightmare A DREAM PITCH FOR INVESTORS
 COMBINE HIGH-TECH & CONSUMABLES OVERSPEC FOR THE JOB?
 HAND-SQUEEZE IS ENOUGH BACKLASH ON “DRM ON VEGS”
 DOUBLE LOCK-IN:
 CONSUMABLES & CONNECTIVITY
 
 EVENTUALLY
 BUSINESS MIGHT BE SOUND, BUT PR WAS BAD
 TIME WILL TELL IF JUICERO TURNS IT AROUND 01/ 02/ 03/ 04/
  79. 79. HAX | HARDWARE TRENDS 2017 | PAGE 79 CLICK AND GROW - 
 HERBS & WALL FARM RAISED $6.3M LIVIN FARMS EDIBLE INSECT FARM 
 FOR CLEAN PROTEIN GROWING… INTEREST 
 HERBS, FOOD & MORE MOTIVATIONS VARY
 SELF-SUFFICIENCY, SUSTAINABILITY, EDUCATION... 01/ 02/ HOME FARMING GROWING FOOD EASILY SAVING THE PLANET?
  80. 80. HAX | HARDWARE TRENDS 2017 | PAGE 80 TOYS,
 STEAM
 &FAMILY
 TECH
  81. 81. HAX | HARDWARE TRENDS 2017 | PAGE 81 LITTLEBITS = LEARN ELECTRONICS RAISED $62M MAKEBLOCK LEARN ROBOTICS RAISED $36M OSMO EDUCATION GAMES RAISED $38.5M STEAM
 TECH To Learn & Play
  82. 82. HAX | HARDWARE TRENDS 2017 | PAGE 82 ELECTRONICTOYSGETSMARTER WITHONBOARDCOMPUTERS COZMO BY ANKI
 A.I. ROBOT RAISED $157.5M SPARK BY DJI
 CONSUMER DRONE WITH GESTURE CONTROLS RAISED $105M
  83. 83. HAX | HARDWARE TRENDS 2017 | PAGE 83 SPORT
 TECH FROM TRACKERS 
 TO COACH WARE
  84. 84. HAX | HARDWARE TRENDS 2017 | PAGE 84 PELOTON BIKES + VIDEO COACHING RAISED $444M CARV SKI SENSORS
 AND AUDIO COACHING TRAINERBOT PINGPONG ROBOT
 WITH VIDEO DRILLS 
 & COMMUNITY SPORTS
 TECHGETS
 SPECIALIZED WITH REAL-TIME 
 VIDEO, AUDIO 
 & ROBOT COACHING
  85. 85. HAX | HARDWARE TRENDS 2017 | PAGE 85 AR A LITTLE 
 OVER-HYPED? VR&
  86. 86. HAX | HARDWARE TRENDS 2017 | PAGE 86 01/ 02/ 03/ CHALLENGES CPU BATTERY LIFE INSIDE-OUT TRACKING …AND ‘KILLER APPS’
 VIRTUAL REALITY: TOWARD STANDALONE
  87. 87. HAX | HARDWARE TRENDS 2017 | PAGE 87 SONICAM USES
 64 MICROPHONES
 FOR 3D SOUND RECORDING VIRTUAL
 REALITY: BRIDGINGTHE
 CONTENT
 GAP 3D CAMERAS WITH
 3D SOUND OFFER
 IMMERSIVE CONTENT
  88. 88. HAX | HARDWARE TRENDS 2017 | PAGE 88 FOVE ADDS 
 EYE-TRACKING 
 TO VR CONTROL APPLE ACQUIRED EYE-TRACKING COMPANY SENSOMOTORIC INSTRUMENTS IN JUNE 2017 FOVEATED DISPLAY BY VARJO HIGH RESOLUTION IN AREA GAZED AT STANDARD DISPLAY VIRTUAL REALITY: EYETRACKING
 &FOVEATED DISPLAY
  89. 89. HAX | HARDWARE TRENDS 2017 | PAGE 89 LEAP BRINGS
 HAND GESTURES INTO VR VIRTUALREALITY: NATURALHAND GESTURES
  90. 90. HAX | HARDWARE TRENDS 2017 | PAGE 90 SPECTACLES BY SNAP PHOTOS & SHORT VIDEOS $130 VUE
 ‘EVERYDAY SMART GLASSES’ VOICE CONTROL, NOTIFICATIONS, BONE CONDUCTION AUDIO $199 PRE-ORDER ALPHAGLASS
 AR GLASSES WITH FULL-LENS DISPLAY, BONE CONDUCTION AUDIO, ETC. $899 PRE-ORDER DISCREET, 
 PRACTICAL SMART
 GLASSES SECOND
 COMING
  91. 91. HAX | HARDWARE TRENDS 2017 | PAGE 91 We are going to 
 make the camera
 the first augmented reality platform” AUGMENTED REALITY: STARTINGWITH SMARTPHONES? TARGETS: 
 RECOGNIZE PEOPLE & OBJECTS,
 ADD ANIMATED OBJECTS, 
 CREATE 3D SCENES 
 FROM 2D PHOTOS
 MARK ZUCKERBERG, CEO, FACEBOOK “
  92. 92. HAX | HARDWARE TRENDS 2017 | PAGE 92 MICROSOFT HOLOLENS
 $3,000 ATHEER
 AR GLASSES 
 FOR INDUSTRY DAQRI
 SMART HELMET & GLASSES
 FOR INDUSTRY AUGMENTEDREALITY: DEVICESONLYFOR BUSINESSSOFAR?
  93. 93. HAX | HARDWARE TRENDS 2017 | PAGE 93 LOOKING GLASS
 VOLUMETRIC DISPLAY A.I. CHARACTER HOLOGRAM HOLOGRAPHIC DISPLAYS OR“REAL VIRTUALITY”? LATEST DEVELOPMENT
 FOR TRUE 3D DISPLAYS
  94. 94. HAX | HARDWARE TRENDS 2017 | PAGE 94 CONSUMER
 ROBOTS GROWING INTEREST
 AND CAPABILITIES
  95. 95. HAX | HARDWARE TRENDS 2017 | PAGE 95 DJIRULES CONSUMER DRONES PARROT, YUNEEC DOWNSIZED
 3DR ABANDONED HARDWARE
 LILY ROBOTICS WENT BANKRUPT
 GOPRO SUFFERED FROM DELAYS SOURCE: GARTNER, 2017 0 1 2 3 4 Consumer Commercial 3.69 2.8 2.36 1.71 2016 2017 US$ BILLION
  96. 96. HAX | HARDWARE TRENDS 2017 | PAGE 96 ROBOTS
 TAKEOVER
 THEHOME 2016 2022 SOURCE: TRACTICA, 2017 MARKET: UNITS: $3.6B 10M MARKET: UNITS: $13B 50M
  97. 97. HAX | HARDWARE TRENDS 2017 | PAGE 97 IROBOT
 SOLD OVER 15M ROBOTS CHINA’S ECOVACS
 CLAIMS 65% OF LOCAL MARKET.
 FILED FOR IPO IN SHANGHAI SWEDEN’S HUSQVARNA SOLD OVER 1M ROBOT LAWNMOWERS 01/

 02/ ROBOTS COVER BASIC TASKS
 INTELLIGENCE IS RISING ROOMBA MAKER
 AT AN ALL-TIME HIGH.
 MARKET CAP = $2.5B (JUN 17, 2017) THEFIRSTWAVE OFCONSUMER SERVICEROBOTS ISMATURE
  98. 98. HAX | HARDWARE TRENDS 2017 | PAGE 98 “Roomba, go clean the kitchen floor!” ROBOTSTOO SIMPLE? YOU CAN’T SAY (YET)
  99. 99. HAX | HARDWARE TRENDS 2017 | PAGE 99 01/
 02/ DEDICATED SHAPE MORE (COST-)EFFECTIVE
 THAN HUMANOIDS
 
 CLOUD
 ONBOARD CPU
 LOW-COST SENSORS
 ALLOW MAPPING,
 ORIENTATION,
 OBSTACLE AVOIDANCE XIAOMI’S
 ROBOT VACUUM
 MAPS A HOME NEXTWAVE: CLOUDROBOTICS &ONBOARD COMPUTERS
  100. 100. HAX | HARDWARE TRENDS 2017 | PAGE 100 PR2 ROBOT
 BY WILLOW GARAGE
 YEAR: 2011
 COST: $400,000 BEETL
 CLOUD ROBOT
 YEAR: 2017
 COST: $400 EXAMPLE: DOG POOP 
 PICKER FINDS TARGET
 MAKES MAP NAVIGATES
 AVOIDS OBSTACLES NOW 1,000X CHEAPER
  101. 101. HAX | HARDWARE TRENDS 2017 | PAGE 101 PERSONAL
 MOBILITY
  102. 102. HAX | HARDWARE TRENDS 2017 | PAGE 102 CHINA IS POISED
 TO DOMINATE
 MOBILITY DEVICES NINEBOT SOLD 1M UNITS (JAN’16~JUN’07, 50% OVERSEAS) XIAOMI RELEASED AN E-SCOOTER HOVERBOARDS ARE SO 2016 :)
  103. 103. HAX | HARDWARE TRENDS 2017 | PAGE 103 RETAIL& CROWDFUNDING ROUTE TO MARKET
  104. 104. HAX | HARDWARE TRENDS 2017 | PAGE 104 Big box retailers now have 
 specialized buyers
 for Family Tech who manage dedicated shelves.
 More products got on market, 
 and most kids and parents seem to love them.” SAM HICKMANN
 CEO, JOY
 KIDS WATCH FOR GOOD HABITS “
  105. 105. HAX | HARDWARE TRENDS 2017 | PAGE 105 FASTER 
 TO SCALE 
 DIFFERENTIATE VIA
 UNIQUE VALUE PROPOSITION ITERATIVE PROTOTYPING IN SHENZHEN BUILD & ENGAGE COMMUNITY VALIDATE VIA CROWDFUNDING
 (VALUE PROP, PRICING, FEATURES, ETC.) ENGAGE RETAIL BUYERS BEFORE SHIPPING 01/ 02/ 03/ 04/ 05/ OCTOPUS: KID WATCH FOR GOOD HABITS
 FROM IDEA TO 1,500 TARGET STORES 
 IN 18 MONTHS 5 STEPS 
 TO SUCCESS
  106. 106. HAX | HARDWARE TRENDS 2017 | PAGE 106 SELECTION OF HAX PRODUCTS ON AMAZON LAUNCHPAD ONLINE RETAIL
 IS MOSTLY… 
 AMAZON AND AMAZON LAUNCHPAD WELCOMES TECH PRODUCTS
  107. 107. HAX | HARDWARE TRENDS 2017 | PAGE 107 GOING 
 FROM ONLINE TO 
 BRICK-AND-MORTAR
 IS A CHALLENGE 
 FOR MOST STARTUPS NEED TO LEARN
 THE PROCESSES, MARGINS
 AND BUSINESS PRACTICES
 OF RETAILERS
  108. 108. HAX | HARDWARE TRENDS 2017 | PAGE 108 SMART DOORBELL
 STARTUP RING
 SCALES ITS STRATEGY 01/ 02/ 03/ 
 FAST GROWTH 
 $209M FROM VC
 THANKS TO STRONG SALES BROADER VISION 
 FROM “NEVER MISS A VISITOR”
 TO “SAFER NEIGHBORHOODS” EXPLORING NEW MODELS 
 WITH INSURERS, ETC.
  109. 109. HAX | HARDWARE TRENDS 2017 | PAGE 109 UPDATEON
 CROWDFUNDING ECOSYSTEM MATURING
  110. 110. HAX | HARDWARE TRENDS 2017 | PAGE 110 THIRD PARTY WHITE LABEL SELF-HOSTED CROWDFUNDING,
 PRE-SALES
 &AMAZON
 MADEPRODUCTS
 FASTER
 TO“PROVE” Crowdfunding Pre-sales 1 2 3 Online retail
  111. 111. HAX | HARDWARE TRENDS 2017 | PAGE 111 PRODUCT IN BETA
 = ENOUGH TIME
 FOR CHANGES REPEAT BACKERS KNOW THE RISKS CROWDFUNDING
 REMAINSTHEBEST
 POSSIBLEFEEDBACK
 THATYOUCANGET BACKERS ARE 
 REAL CUSTOMERS
  112. 112. HAX | HARDWARE TRENDS 2017 | PAGE 112 MOUSR
 SMART CAT TOY 
 INTERVIEWED EVERY BACKER TRAINERBOT PING-PONG ROBOT YOUTUBE
 COMMUNITIES GUIDED SPECS FLICKTEK GESTURE-BASED CONTROLLER 
 FULL RE-DESIGN
 FROM FEEDBACK VOLTERA CIRCUIT BOARD PRINTER 
 BACKERS HELPED
 BETA-TEST HOW HAX STARTUPS
 USED FEEDBACK
  113. 113. HAX | HARDWARE TRENDS 2017 | PAGE 113 100 PROJECTS 30 PROJECTS 11 PROJECTS SOURCE: HAX EVALUATION BASED ON KICKSTARTER & INDIEGOGO DATA FOCUS ON HIGH-PROFILE FAILURES 
 HIDES THE BIGGER PICTURE TRIVIA: 11 HAX STARTUPS RAISED
 OVER $1M ON KICKSTARTER MILLION-DOLLARPROJECTS CONNECTEDHARDWARE CAMPAIGNSMOSTLYSHIPPED
  114. 114. HAX | HARDWARE TRENDS 2017 | PAGE 114 LILY ROBOTICS | SELFIE DRONE $15M FROM VCS $34M PRE-ORDERS BANKRUPT HELLO SENSE | SLEEP TRACKER $40M FROM VCS $2.4M ON KICKSTARTER BANKRUPT PEBBLE | SMART WATCHES $15M FROM VCS $30M ON KICKSTARTER
 ACQUIRED (FITBIT) FOR $23M SKULLY | AR BIKE HELMET $12.5M FROM VCS $2.5M ON INDIEGOGO BANKRUPT HIGH-PROFILE
 FAILURESWERE
 VCBACKED
  115. 115. HAX | HARDWARE TRENDS 2017 | PAGE 115 TEAM COST TIME 
 PERCEPTION
 (ESTIMATE) 10 $2M 4YEARS 
 REALITY
 (2017) 2 
 $100KVC +$250KKS 18MONTHS MAKINGHARDWARE
 FASTER&FORLESS ALEX & 
 HARRISON CHEN
 CO-FOUNDERS
 FORBES ASIA 30 UNDER 30 E.G. PING-PONG ROBOT
  116. 116. HAX | HARDWARE TRENDS 2017 | PAGE 116 1. The tech level is going up 2. Know your tech, costs & factory before launch 3. The best page from 2015 is today’s minimum 4. Journalists want to see proof 5. Viral videos are the new black 6. Advertising works once you have momentum 7. Build a community 8. It's a full-time job 9. You can’t predict a $1M result 10. The result doesn’t determine your future WHAT IS SUCCESS?
 A. SHIPPING A GOOD PRODUCT
 B. BUILDING A PROFITABLE BUSINESS HAX CROWDFUNDING GUIDE 2017
 WWW.SLIDESHARE.COM/HAXCO 10LESSONS
 FROM>80CAMPAIGNS
 BYHAXSTARTUPS
  117. 117. HAX | HARDWARE TRENDS 2017 | PAGE 117 WHY
 PROJECTS
 GETDELAYED Major problems during DFM/DFA Major problems during beta testing 1 2 3 Stacking of frequent minor problems Converting a design to a scalable supply chain. A good DFM/DFA process mitigates a lot of the problems that can arise with metals, plastics, fabrics, digital electronics, Bluetooth, etc. Major problems delay by months.
 Many minor ones (long certifications, negative tests, plastic color problems, etc.) delay by weeks. Being on- site saves time. Source: Kickstarter research by Mindset, 2017
  118. 118. HAX | HARDWARE TRENDS 2017 | PAGE 118 SOLVE PROBLEMS FASTER
 INCHINA
 JACOB FLOOD
 COFOUNDER, MINDSET
 HEADPHONES FOR CONCENTRATION “ When you're in China, you only need
 short discussions to fix small issues. The time saved on back and forth
 can avoid months of delays.”
  119. 119. HAX | HARDWARE TRENDS 2017 | PAGE 119 KICKSTARTER SUCCESS JASEN WANG, CEO A MAKER WITH PASSION
 FOR EDUCATION 450 STAFF, 
 GLOBAL SALES… 
 FROM SHENZHEN MAKEBLOCK 
 STEM 
 ROBOTS 01/ 02/ 03/ HUMBLE BEGINNINGS 
 SOLO FOUNDER
 LIMITED ENGLISH
 RAISED $185,000 IN 2012 
 FAST GROWTH 
 400 STAFF, $MILLIONS IN SALES,
 RAISED $36M FROM VCS
 INCLUDING SEQUOIA CHINA KICKSTARTER FANS
 LAUNCHED 6 PRODUCTS
 FOR MARKET VALIDATION DRONES, ELECTRONCIS & MORE
  120. 120. HAX | HARDWARE TRENDS 2017 | PAGE 120 HEALTH
 TECH BEYOND TRACKING,
 TOWARD PREVENTION 
 AND HEALING MEDICAL 
 DEVICES
 REGULATED CONSUMER 
 HEALTH
 NON REGULATED 03/ HAX | HARDWARE TRENDS 2017 | PAGE 120
  121. 121. HAX | HARDWARE TRENDS 2017 | PAGE 121 We have the opportunity
 to make the generation born now
 the healthiest in history.” ‘GENERATION HEALTH’
 IS COMING ALEX GORSKY
 CEO, JOHNSON & JOHNSON “ HAX | HARDWARE TRENDS 2017 | PAGE 121
  122. 122. TODAY TOMORROW HEALTH IS BINARY HEALTH CARE IS SICK CARE YEARLY CHECK-UPS BLANKET TREATMENT WELLNESS IS A SPECTRUM P4 MEDICINE REAL-TIME DATA CLINICAL STUDY OF ONE HAX | HARDWARE TRENDS 2017 | PAGE 122
  123. 123. HAX | HARDWARE TRENDS 2017 | PAGE 123 / 02 / 03 / 04 4p PREDICTIVE
 ANTICIPATE / 01 PREVENTIVE
 AVOID ONSET
 MEDICINE WITHDATA
 FROMDEVICES PERSONALIZED
 TO EACH PATIENT
 PARTICIPATORY
 CONTRIBUTE DATA
 

  124. 124. HAX | HARDWARE TRENDS 2017 | PAGE 124 DIGITAL THERAPIES THENEW
 PHARMA? SANA SLEEP MASK REPLACES SLEEPING PILLS NEUTROGENA LIGHT MASK IS A NEW ACNE TREATMENT HAX | HARDWARE TRENDS 2017 | PAGE 124
  125. 125. A.INEEDS
 HEALTHDATA
 FROMDEVICES YOUR A.I.
 IS JUST AS GOOD 
 AS YOUR DATA OPPORTUNITY HAX | HARDWARE TRENDS 2017 | PAGE 125
  126. 126. HAX | HARDWARE TRENDS 2017 | PAGE 126 PREVENT SICKNESS OPTIMIZE WELLNESS LONGER LIFE GENETICIST MICHAEL SNYDER
 WEARS SEVEN BIOSENSORS
 
 HE DETECTED THE ONSET
 OF LYME DISEASE ON HIMSELF WELLNESS
 AS-A-SERVICE THE NEXT 10 YEARS: HAX | HARDWARE TRENDS 2017 | PAGE 126
  127. 127. HAX | HARDWARE TRENDS 2017 | PAGE 127 DATA
 ISTHE NEW BLOOD PRIVACY CHALLENGES REMAIN GATHERING OF DATA A HUGE DATA MANAGEMENT ISSUE PERSONALIZED OUTPUT EXPLAINABLE FOR EACH CASE INITIATIVES STARTING E.G. IBM WATSON,
 EUROPEAN OPEN SCIENCE CLOUD NORMALIZATION OF TIME IS A CHALLENGE PRIVACY DATA ANONYMIZING IMPRACTICAL
 LEGISLATION ON USE NEEDED HAX | HARDWARE TRENDS 2017 | PAGE 127
  128. 128. HAX | HARDWARE TRENDS 2017 | PAGE 128 DUNCAN TURNER
 MANAGING DIRECTOR
 HAX SEED Donating your data
 might help more than donating an organ” “
  129. 129. HAX | HARDWARE TRENDS 2017 | PAGE 129 60%
 BEHAVIOR 
 & ENVIRONMENT 30%
 GENETICS 10%
 HEALTHCARE BEHAVIOR
 ISAKEY
 LONG TERM HEALTH HAX | HARDWARE TRENDS 2017 | PAGE 129
  130. 130. HAX | HARDWARE TRENDS 2017 | PAGE 130 TECHNOLOGY
 IS A PROBLEM TOO DIGITAL ADDICTION, BLUE LIGHT,
 LOCAL WARMING HAX | HARDWARE TRENDS 2017 | PAGE 130
  131. 131. HAX | HARDWARE TRENDS 2017 | PAGE 131 TROJAN HORSEFOR HIGH-VALUE DATA NURA 
 DATA ON 
 HEARING CHANGES RAY BABY DATA ON BABY BREATHING CIRCADIA 
 DATA ON LIGHT INFLUENCE ON SLEEP KOKOON 
 BRAIN DATA FOR 
 AUDIO THERAPY MINDSET 
 DATA ON CONCENTRATION HEALTHTECHDEVICES HAX | HARDWARE TRENDS 2017 | PAGE 131
  132. 132. HAX | HARDWARE TRENDS 2017 | PAGE 132 A.I. FOR DISEASE PREVENTION
 WILL BE DRIVEN
 BY HARDWARE DATA ALARGENUMBER
 OFBLOODDIAGNOSTIC
 DEVICESAREENTERING
 THEMARKET CRIAMTECH GEO-TAGS DISEASE IDENTIFIED IN BLOOD TO GIVE UP TO DATE INFO ON POTENTIAL EPIDEMICS. 
 BBB PROVIDES HISTORICAL TRACKING OF KEY MARKERS IN THE BLOOD
  133. 133. INVESTMENTREQUIRES ‘PROOF’ HAX | HARDWARE TRENDS 2017 | PAGE 133
  134. 134. HAX | HARDWARE TRENDS 2017 | PAGE 134 INTEREST
 INMEDICALDEVICESISUP BUTDOWNINWELLNESS PRE-FDA FUNDING GAP OFFERS OPPORTUNITIES FDA/CE APPROVAL
 REQUIRED FOR “SERIOUS”DEVICES
 PRE-APPROVAL FUNDING
 LESS CROWDED
 FOR INVESTORS “WELLNESS” DEVICES 
 LOWER INTEREST FROM INVESTORS / CONSUMERS?
 HAX | HARDWARE TRENDS 2017 | PAGE 134
  135. 135. HAX | HARDWARE TRENDS 2017 | PAGE 135 INVESTORS
 WANT‘PROOF’
 FORMEDICAL DEVICES Med-tech seed funding
 is very hard to find; we raised from tech and consumer investors.
 It was tough due to regulatory risk: everyone wants to see data first.
 So get the data.
 Nothing else really matters.”
 You need ‘proof’. Research studies and our scientific expertise helped a lot. FDA policies are not set for behavioral health devices,
 which makes it harder.” GEORGE ELEFTHERIOU, 
 CEO, FEEL
 EMOTIONS TRACKER RICHARD HANBURY, 
 CEO, SANA
 SLEEP INDUCING SMART MASK “ “
  136. 136. Investors have lots of interest in mental health with clinical applications, much less in ‘wellness’ applications.” Since there are no winners in the space yet,
 it’s a big opportunity, but hard for
 early stage startups.” “ GEORGE ELEFTHERIOU
 CEO, FEEL
 EMOTIONS TRACKER HAX | HARDWARE TRENDS 2017 | PAGE 136
  137. 137. SOLVING FOR
 & BEYOND TRACKING X HAX | HARDWARE TRENDS 2017 | PAGE 137
  138. 138. HAX | HARDWARE TRENDS 2017 | PAGE 138 FEEL EMOTION SENSOR
 RECOGNIZES JOY, SADNESS,
 STRESS, DISTRESS, AND CONTENT BERKELEY ULTRASOUND FOCUSED ULTRASOUND
 FOR BRAIN STIMULATION TO TREAT DEPRESSION FLOW NEUROSCIENCE TRANS-CRANIAL DIRECT-CURRENT (TDCS)
 FOR BRAIN STIMULATION
 TO TREAT DEPRESSION FROMTRACKING
 TOTREATMENT SOLVING FOR DEPRESSION HAX | HARDWARE TRENDS 2017 | PAGE 138
  139. 139. HAX | HARDWARE TRENDS 2017 | PAGE 139 LIEFTHERAPEUTICS ANXIETYMONITOR “We've chosen to do both
 consumer and clinical devices.
 Our practical way to do this was to use Kickstarter for the consumer version,
 then use the learnings for the clinical one” LIEF TRACKS ANXIETY, 
 USES BIO-FEEDBACKTO TRAIN USERS IT RAISED $400,000 ON KICKSTARTER MAP HEALTH MANAGEMENT TEAMED UP WITH 
 LIEF THERAPEUTICS TO PILOT ANXIETY-MONITORING 
 WEARABLE IN ADDICTION RECOVERY PATIENTS ROHAN DIXIT, CEO, 
 LIEF THERAPEUTICS HAX | HARDWARE TRENDS 2017 | PAGE 139
  140. 140. HAX | HARDWARE TRENDS 2017 | PAGE 140 FROMPREVENTIONTOREHABANDIMPLANTS LUMO LIFT TRACKER TRACKS POSTURE JAPET BIONIC CORSET RELIEVES PRESSURE ON SPINE AND HELPS REHAB SMARTFUSE SMART CAGE INCREASES THE SUCCESS RATE
 OF SPINAL FUSIONS SURGERIES SOLVING FOR BACK PAIN HAX | HARDWARE TRENDS 2017 | PAGE 140
  141. 141. SANA INDUCES SLEEP WITHIN MINUTES
 USING LIGHT AND SOUND, BRAINWAVE MONITORS & MACHINE LEARNING CIRCADIA POWERS LIGHT THERAPY WITH SLEEP DATA FROM RADAR TECHNOLOGY AND MACHINE LEARNING MOONA CONTROLS PILLOW TEMPERATURE
 TO INDUCE AND DEEPEN SLEEP,
 ADJUSTING WITH MACHINE LEARNING DIGITAL
 THERAPIES
 &MACHINE
 LEARNING SOLVING FOR SLEEP HAX | HARDWARE TRENDS 2017 | PAGE 141
  142. 142. “SLEEPTECH GOESMEDICAL For generic, unproven products,
 the sleep market is commoditized, 
 with no proof actually helping anyone.
 We chose to go medical first,
 prove with data, get FDA,
 then go back to consumer,
 with that proof as the differentiation” RICHARD HANBURY, CEO, SANA
 SLEEP-INDUCING SMART MASK CONSUMER PRODUCTS 
 REACHED THEIR LIMIT? HAX | HARDWARE TRENDS 2017 | PAGE 142
  143. 143. HAX | HARDWARE TRENDS 2017 | PAGE 143 KEEN GESTURE RECOGNITION, BIOFEEDBACK AND MACHINE LEARNING
 TO TREAT BODY-FOCUSED
 REPETITIVE BEHAVIORS D-FREE ULTRASOUND DETECTION FOR INCONTINENCE PREVENTION RAISED $4.9M FEETME PRESSURE-TRACKING INSOLE
 FOR DIABETIC FOOT, AND
 INJURY PREVENTION FOR RUNNERS AIRE BREATHALYZER FOR DIGESTION
 TESTING AND IBS PREVENTION OTHER PREVENTION DEVICES NEWDEVICES
 PREVENTNUMEROUS
 CONDITIONS HAX | HARDWARE TRENDS 2017 | PAGE 143
  144. 144. HAX | HARDWARE TRENDS 2017 | PAGE 144 INGESTIBLE
 SENSORS PROTEUS DIGITAL HEALTH
 USES INGESTIBLE SENSORS
 TO INCREASE MEDICATION ADHERENCE AND IMPROVE OUTCOMES TRACKING
 FROM THE INSIDE HAX | HARDWARE TRENDS 2017 | PAGE 144
  145. 145. HAX | HARDWARE TRENDS 2017 | PAGE 145 SENSIO AIR ALLERGEN TRACKER MY UV PATCH BY L’OREAL 
 NOTE: MOST UV TRACKERS HAVEN’T SHIPPED, OR ARE INEFFECTIVE. POLLUTION,
 ALLERGENS&UVS O2O2 SMART POLLUTION MASK SOLVING FOR ENVIRONMENT AIR VISUAL POLLUTION TRACKER HAX | HARDWARE TRENDS 2017 | PAGE 145
  146. 146. HAX | HARDWARE TRENDS 2017 | PAGE 146 market-in-2016/ REAL PROOF OF TREATMENT EFFECTIVENESS CAN REQUIRE
 MORE THAN FDA APPROVAL IGROW, IRESTORE AND HAIR REPRO
 LASER HAIR GROWTH HELMETS LIGHT THERAPY ACNE MASK
 BY NEUTROGENA GLOPRO NEEDLE
 MICRO-NEEDLE & RED LED LIGHT
 TO EXFOLIATE & BRIGHTEN THE SKIN TRIA
 LASER HAIR REMOVAL SOLVING FOR SKIN & HAIR ANTI-AGING,
 ACNE,HAIR REMOVAL& REGROWTH
  147. 147. LOVELY
 SEX TOY AND COACH 
 FOR COUPLES UNDER- WEARABLES SOLVING FOR SEX ELVIE PELVIC FLOOR TRAINER WITH KEGEL EXERCISES HISENS TRACKER FOR ERECTILE
 DYSFUNCTION HAX | HARDWARE TRENDS 2017 | PAGE 147
  148. 148. TRACKINGFERTILITY
 &PREGNANCY BLOOM PREGNANCY TRACKER SOLVING FOR CONCEPTION MOJO MEDICAL-GRADE HOME TEST FOR MALE FERTILITY WINK BY KINDARA
 FEMALE FERTILITY TRACKER HAX | HARDWARE TRENDS 2017 | PAGE 148
  149. 149. HAX | HARDWARE TRENDS 2017 | PAGE 149 EASING THEEARLY MONTHS SOLVING FOR PRETERMS BABYBE REMOTE PRESENCE 
 FOR PRETERM BABIES HUGSY SMART BABY BLANKET
  150. 150. RAY BABY
 NON-CONTACT MONITOR LILU
 BREAST PUMPING BRA MILK SAFE 
 HOME TEST FOR BREAST MILK AND BABY FORMULA EASING THEEARLY MONTHS SOLVING FOR NURSING HAX | HARDWARE TRENDS 2017 | PAGE 150
  151. 151. HAX | HARDWARE TRENDS 2017 | PAGE 151 GLUCOSEMONITORS, FROMLOWTOHIGHTECH VERILY AN ALPHABET SPIN-OFF, IS DEVELOPING A GLUCOSE MONITOR WITH ALCON PROFUSA MAKES A GLUCOSE SENSOR TO PLACE UNDER THE SKIN FOR CONTINUOUS MONITORING DIABETO CONNECTS TO GLUCOSE MONITORS FOR MANAGEMENT AND REMOTE 
 PATIENT MONITORING SOLVING FOR DIABETES HAX | HARDWARE TRENDS 2017 | PAGE 151
  152. 152. HAX | HARDWARE TRENDS 2017 | PAGE 152 PLENTYMORE! HAX | HARDWARE TRENDS 2017 | PAGE 152
  153. 153. REWIRING THE PHYSICAL WORLD 
 WITH SENSORS AND ROBOTS, 
 CHANGING THE WAY WE MAKE ENTERPRISE
 ANDINDUSTRIAL04/ HAX | HARDWARE TRENDS 2017 | PAGE 153
  154. 154. ENTERPRISES
 FINDING
 VALUABLEDATA INDUSTRY PLAYERS
 HAVE DIFFERENT PACES
 ADOPTION SPEED MIGHT SORT OUT WINNERS HARDWARE-ENABLED SOFTWARE
 HARDWARE USED MOSTLY FOR DATA COLLECTION DATA IS THE NEW OIL
 FOR ENTERPRISE
 INSIGHTS BRING
 NEW REVENUE INDUSTRIAL IOT OUTPACES CONSUMER IOT
 MORE SENSORS IN BUILDINGS & CARS
 THAN HUMANS WHERE IT HAS 
 NEVER EXISTED HAX | HARDWARE TRENDS 2017 | PAGE 154
  155. 155. “SCALE: one deal = convince one person/org to say yes, instead of many in B2C. It’s simpler and cleaner.
 ACQUISITION COSTS: invest time instead of money. 
 Fly once instead of sacrificing margin for each sale. CHANGING LANDSCAPE: your product might have better use cases or economics for business.
 For instance, hotels and Airbnb operators showed more interest than we expected. GOING
 FROMB2C
 TOB2B DANIEL MYERS COFOUNDER, FLAIR
 SMART VENTS HAX | HARDWARE TRENDS 2017 | PAGE 155
  156. 156. HAX | HARDWARE TRENDS 2017 | PAGE 156 BUILDING MANAGEMENT LOGISTICS RETAIL TOPDATAGATHERINGENTERPRISES
 RECENTLYDISCOVERINGNEWVALUE MINING UTILITIES AGRICULTURE HAX | HARDWARE TRENDS 2017 | PAGE 156
  157. 157. FROM$3.8BILLIONIN2015
 TO$10BILLIONBY2020 CONNECTED MINING MARKET: REDUCE
 PRODUCTION COSTS ENHANCE
 PRODUCTION EFFICIENCY PROTECT
 WORKERS COMPUTER VISION SURVEYING, SENSING,
 REMOTE-CONTROLLED ROBOTIC MACHINERY HAX | HARDWARE TRENDS 2017 | PAGE 157
  158. 158. TRUCKS DROVE
 4 MILLION KILOMETERS
 AUTONOMOUSLY RIO TINTO USED HUNDREDS
 OF CONNECTED SENSORS SINCE 2011 MONITOR, CONTROL, AUTOMATE
 REMOVAL & PROCESSING OF ORE
 WITH REAL-TIME R/C EQUIPMENT
 FROM REMOTE CONTROL CENTERS. MININGCOMPANIES
 AMONGFIRSTMOVERS
 INMASSDEPLOYMENT
 OFINDUSTRIAL
 IOTSENSORS “WE JUST DIDN’T KNOW THIS WAS CALLED IOT.”
 
 JOHN MCGAGH
 HEAD OF INNOVATION
 RIO TINTO HAX | HARDWARE TRENDS 2017 | PAGE 158
  159. 159. 
 ELECTROMAGNETIC SENSING
 FROM THE SURFACE, 
 TO OPTIMIZE DIGGING OPERATIONS LIAR SCANS ROCK MECHANICS TO MAXIMIZE ORE OUTPUT AND REDUCE EXPLORATION TIME. MOBILE SCANNING TOOL FOR STRUCTURAL MAPPING FOR TUNNELS, ROCKS AND ROADS EXAMPLESOF
 MINETECHSTARTUPS HAX | HARDWARE TRENDS 2017 | PAGE 159
  160. 160. ENERGY SAVING GRID MANAGEMENT EXTRA REVENUE UTILITY
 COMPANIES
 SEEVALUE
 INIOTSTART-UPS HAX | HARDWARE TRENDS 2017 | PAGE 160
  161. 161. CONNECTED HOMETECH HELPSUTILITY COMPANIES UTILITIES PAY OWNERS
 $30-$50 / YEAR / NEST
 TO LEVEL LOAD THE GRID. VOLTCLOUD VOLTSTORAGE USES VANADIUM REDUX FLOW FUEL CELLS FOR SAFE, HIGH EFFICIENCY
 & SMART STORAGE VOLTSTORAGE SMART GRID CAN RESPOND
 TO NETWORK DEMAND HAX | HARDWARE TRENDS 2017 | PAGE 161
  162. 162. BREEZI SMART MONITOR FOR 
 AC EFFICIENCY ELECTRICITY FOR RESIDENTIAL A/C FLAIR SMART AC USAGE SAVINGSOF1-2%
 INWIDE
 ENERGYAREAS
 ISMEANINGFUL $29BN HAX | HARDWARE TRENDS 2017 | PAGE 162
  163. 163. “ Utilities are shifting to dynamic pricing, generation and usage and struggle to keep up internally. Investing in solutions for demand response avoids the need of ‘peaker plants’, and stabilizes the grid. 
 The AC industry doesn’t have the skillset for apps, cloud systems
 and algorithms. This creates opportunities for startups. 
 For distribution, contractors can use our solution for thermal audits. 
 They can thus bill hours and recommend systems based on real data.” DANIEL MYERS COFOUNDER, FLAIR
 SMART VENTS HAX | HARDWARE TRENDS 2017 | PAGE 163
  164. 164. HAX | HARDWARE TRENDS 2017 | PAGE 164 AGTECHNEEDED
 TOBETTERFEED
 AGROWING
 POPULATION LAND SHORTAGE
 CALLS FOR
 MORE INPUTS
 & BETTER YIELD HAX | HARDWARE TRENDS 2017 | PAGE 164
  165. 165. RISINGFOODNEEDSREQUIRE
 70%GROWTHINOUTPUT
 BY2050 SOURCES OF GROWTH
 IN GLOBAL AGRICULTURE OUTPUT = TIME TO IMPROVE PRODUCTIVITY TOTAL OUTPUT GROWTH RATE PRODUCTIVITY IMPROVEMENTS MORE INPUTS PER AREA EXPANSION OF IRRIGATION TO CROPLAND EXPANSION OF AGRICULTURAL LAND 1961-70 1971-80 1981-90 1991-2000 2001-13 2.30 2.10 2.13 2.52 2.88 HAX | HARDWARE TRENDS 2017 | PAGE 165
  166. 166. LIVESTOCKMONITORING
 ISEXPECTEDTOCONTRIBUTE20%
 OFTHEOVERALL80%PRODUCTIVITYGAINS
 EXPECTEDINAGRICULTUREBETWEEN
 2015AND2025
 
SOURCE:FROSTANDSULLIVAN HAX | HARDWARE TRENDS 2017 | PAGE 166
  167. 167. HAX | HARDWARE TRENDS 2017 | PAGE 167 CERES IMAGING RAISED $5MGAMAYA RAISED $4.3M SENSINGTECHNOLOGY BOOSTSPRODUCTIVITY GARDENSPACE HYPERSPECTRAL SENSORS
 SIMPLE AND AFFORDABLE
 BRING ACTIONABLE INFORMATION TO FARMS AND GARDENS HAX | HARDWARE TRENDS 2017 | PAGE 167
  168. 168. PYCNO 
 SHIPPED 150 LOCATIONS SECROP ROLLING OUT
 ACROSS FRANCE 
 NUTRIENTNEEDS
 REDUCEWASTE
 &SAVERESOURCESEDYN IRRIGATES
 BASED ON SOIL DATA SENSORS INFORM HARVEST TIMES HAX | HARDWARE TRENDS 2017 | PAGE 168
  169. 169. FARMERS MAXIMIZE REVENUE, USING
 LOW COST MOISTURE 
 AND SPOILAGE SENSORS DISTRIBUTORS 
 PREDICTS VOLUMES TRADERS 
 BUY/SELL COMMODITIES SENSING CROP AFTER HARVEST 
 CREATES NEW ECONOMIES 
 AND NEW MARKETS AMBER TECHNOLOGIES CROP SENSORS SENSORS
 FORCROPSILOS
 HAX | HARDWARE TRENDS 2017 | PAGE 169
  170. 170. HAX | HARDWARE TRENDS 2017 | PAGE 170 SENSORS CAN HELP TRACK, TRACE & PRESERVE GRAIN
 LIKE CORN, SOYBEAN AND BARLEY. 
 
 FARMERS WANT TO KEEP THEIR DATA, BUT ALSO SEE THE BENEFITS OF SHARING WITH THEIR BUYERS.
 
 EVENTUALLY, IT WILL HELP AVOID SPOILAGE AND IMPROVE
 FOOD TRACEABILITY”
 LUCAS FRYE, COFOUNDER
 AMBER TECHNOLOGIES
 CROP SENSORS “ HAX | HARDWARE TRENDS 2017 | PAGE 170
  171. 171. HAX | HARDWARE TRENDS 2017 | PAGE 171 VERTICALFARMINGRECEIVED
 MOSTAGTECHINVESTMENT FOUNDED 2004 
 RAISED $90M FOUNDED 2011 
 RAISED $58M FOUNDED 2011 
 RAISED $12M FOUNDED 2017 
 RAISED $28M HAX | HARDWARE TRENDS 2017 | PAGE 171
  172. 172. HAX | HARDWARE TRENDS 2017 | PAGE 172 “HOME SYSTEMS
 ARE BECOMING LARGER AND CAN GROW MORE PLANTS.
 
 YET, MOST CAN STILL
 ONLY GROW BASIC GREENS
 AND HERBS.” BJORN DAWSON
 CEO, GROBO
 HOME GROWING SYSTEM
 HAX | HARDWARE TRENDS 2017 | PAGE 172
  173. 173. HAX | HARDWARE TRENDS 2017 | PAGE 173 “ADULT CONTENT” OF URBAN FARMING DRIVING IMPROVEMENTS & USER ADOPTION.
 LEGALIZATION SPREADING COUNTRIES + STATES IN NORTH AMERICA LEGALIZING.
 INVESTMENT BOOM IN PHARMA/BIOTECH & CULTIVATION. CANNABISTECH ISSETTOBOOM
 IN2018 01/ 02/ 03/ THANKS TO BETTER GROWING SYSTEMS & BROAD LEGALIZATION HAX | HARDWARE TRENDS 2017 | PAGE 173
  174. 174. PICKERS PLANTERS AGTECH
 ROBOTS
 ALLOWFOR DENSECROP SPACE HAX | HARDWARE TRENDS 2017 | PAGE 174
  175. 175. LOGISTICS AUTOMATION HAX | HARDWARE TRENDS 2017 | PAGE 175
  176. 176. ROBOTS
 AREJOINING
 THEWORKFORCE INDUSTRIAL REVOLUTION TRIVIA HAND SPINNING WITH A WHEEL WOULD TAKE A WORKER
 50,000 HOURS FOR 100 LB OF COTTON BY THE 1790S, 100 LB COULD BE SPUN IN 300 HOURS BY MULE. ONE WORKER WITH A SELF-ACTING MULE TOOK JUST 135 HOURS. SOURCE: A SHORT HISTORY OF THE BRITISH INDUSTRIAL REVOLUTION HAX | HARDWARE TRENDS 2017 | PAGE 176
  177. 177. HAX | HARDWARE TRENDS 2017 | PAGE 177 SMARTER VERSION OF CONSUMER DEVICES TO OPTIMIZE TIME AND COSTS LOGISTICS: 
 WAREHOUSES, 
 INVENTORY
 SERVICES: SECURITY, ROOM SERVICE, FLOOR & WINDOW CLEANING, INVENTORY, ETC. ROBOTS
 AREJOINING
 THEWORKFORCE 01/ 02/ 03/
  178. 178. AMAZON
 DEPLOYS
 45,000
 ROBOTS
 ALSO CREATES
 100,000 JOBS NOV 2014
 15,000 
 ROBOTS SEP 2015
 30,000
 ROBOTS JAN 2017
 45,000
 ROBOTS INWAREHOUSES HAX | HARDWARE TRENDS 2017 | PAGE 178
  179. 179. HAX | HARDWARE TRENDS 2017 | PAGE 179 RELAY BY SAVIOKE
 EXPANDS ITS INDOOR DELIVERIES BEYOND HOTELS TALLY BY SIMBE
 AUTOMATES RETAIL INVENTORY LOCUS
 WAREHOUSE ROBOTS FETCH
 WAREHOUSE ROBOTS STANDALONE
 ROBOTSSPREAD HAX | HARDWARE TRENDS 2017 | PAGE 179
  180. 180. I don’t think people are investing in automation
 because of a near-term labor shortage.
 It’s about improving productivity.
 Fundamentally, that means people will be replaced.” KARL SIEBRECHT
 CEO, FLEXE
 (ON-DEMAND
 WAREHOUSE SPACE)“ HAX | HARDWARE TRENDS 2017 | PAGE 180
  181. 181. BURGERS 
 BY MOMENTUM MACHINES FROZEN YOGURT 
 BY FROBOT
 COFFEE
 BY A MITSUBISHI ROBOT ARM SERVICEJOBS
 AUTOMATION MCDONALD’S ORDER KIOSK ROBOT WAITER FAST FOOD FIRST IN LINE HAX | HARDWARE TRENDS 2017 | PAGE 181
  182. 182. HAX | HARDWARE TRENDS 2017 | PAGE 182 DELIVERIES SMALL DRONES
 SMALL PARCELS,
 DESIGNATED ROUTES 01/ 02/ LONG-DISTANCE DRONES
 FIXED WING REACHED
 100 MILES AMAZON PRIME AIR JD.COM TEAM ROADRUNNER DRONE ‘BEEHIVE’
 CONCEPT PATENT
 BY AMAZON HAX | HARDWARE TRENDS 2017 | PAGE 182
  183. 183. LEGS STILL EXPENSIVE
 …UNTIL IT'S NOT 02/ DISPATCH BOSTON DYNAMICS DELIVERIESWHEELS SEVERAL STARTUPS
 RUNNING PILOTS 01/ HAX | HARDWARE TRENDS 2017 | PAGE 183
  184. 184. CAR MAKERS
 BATTLE WITH SOFTWARE GIANTS AUTONOMOUSCARS
 ISALL-OUTWAR? HAX | HARDWARE TRENDS 2017 | PAGE 184
  185. 185. With billions of smart devices,
 connectivity is in the spotlight.
 No-one seems financially motivated to deploy LoRa nationally. Carriers developed Narrowband-IoT to crush Sigfox. Lower costs might
 leave it a chance” THEBATTLE
 FORTHE
 NARROW
 BAND WILL POLITICS 
 & ECONOMICS PREVAIL? ZACH SUPALLA, 
 CEO, PARTICLE
 FULL-STACK IOT DEVICE PLATFORM “ HAX | HARDWARE TRENDS 2017 | PAGE 185
  186. 186. HAX | HARDWARE TRENDS 2017 | PAGE 186 INDUSTRY05/ MICRO-MANUFACTURING, 
 SMART FACTORIES
 & PERSONAL FABRICATION HAX | HARDWARE TRENDS 2017 | PAGE 186
  187. 187. HAX | HARDWARE TRENDS 2017 | PAGE 187 LABOUR ECONOMICS 
 MOVED PRODUCTION 
 FROM SUPERPOWER 
 TO SUPERPOWER. MANUFACTURING MOVEDFORTHE LASTTIME? IT LEFT BEHIND
 ENGINEERING KNOW-HOW 
 AND INNOVATION GREAT BRITAIN 1780 1830 CENTRAL EUROPE 1870 JAPAN 1890 USA 1950 CHINA HAX | HARDWARE TRENDS 2017 | PAGE 187
  188. 188. GREAT BRITAIN NOW NEXT CENTRAL EUROPE NEXT JAPAN ? USA ? CHINA ROBOTICS
 WILLDOMINATE
 HIGH-VALUE
 PRODUCTION
 REGARDLESS OF LABOR COSTS HAX | HARDWARE TRENDS 2017 | PAGE 188
  189. 189. HAX | HARDWARE TRENDS 2017 | PAGE 189 JAPANESE ROBOTS DOMINATE
 …SOFAR 100,000 200,000 300,000 400,000 500,000 Fanuc Yaskawa ABB Kawasaki Nachi Kuka Denso Epson Adept 25,000 45,000 80,00080,000 100,000110,000 250,000 300,000 400,000 ROBOTS INSTALLED BASE
 WORLDWIDE SOURCE: ROBOTICS & AUTOMATION NEWS, 2016
  190. 190. ROBOTS / 10,000 WORKERS 
 OF LARGER COUNTRIES
 (SOURCE: IFR, 2016) CHINA
 LAGSIN INDUSTRIAL ROBOTSUSE 150 300 450 600 SouthKorea Japan Germany USA France UK China 4971 127 176 301305 531 HAX | HARDWARE TRENDS 2017 | PAGE 190
  191. 191. HAX | HARDWARE TRENDS 2017 | PAGE 191 CHINA LEADS NEW PURCHASES INDUSTRIAL
 ROBOT
 SPENDING
 ISRISING 0 1 2 3 4 '08 '09 '10 '11 '12 '13 '14 '15 China Japan North America US$ BILLION HAX | HARDWARE TRENDS 2017 | PAGE 191
  192. 192. ROBOTS
 PURCHASED BY COUNTRY
 (SOURCE: IFR, 2015) AUTOMATION HASTAKEN OFFINCHINA 20,000 40,000 60,000 80,000 China SouthKorea Japan USA Mexico Canada 2,7004,700 27,000 35,00038,000 69,000 SALES 2015: 248,000 (+12%YOY) +20%YOY HAX | HARDWARE TRENDS 2017 | PAGE 192
  193. 193. HAX | HARDWARE TRENDS 2017 | PAGE 193 CHINA
 PLANSTOAUTOMATE
 MUCH,MUCHMORE 2011: FOXCONN PLANNED TO REPLACE
 500,000 WORKERS WITH 1 MILLION ROBOTS BY 2016
 2016: ONLY 40,000 ROBOTS WERE INSTALLED SINCE 2011
 “We want to automate
 dangerous, dirty and dull work first.”
 
 We plan to keep only
 a minimal number of workers
 assigned for production, logistics,
 testing, and inspection processes.” JIA-PENG DAI
 GM OF AUTOMATION COMMITTEE, 
 FOXCONN HAX | HARDWARE TRENDS 2017 | PAGE 193
  194. 194. HAX | HARDWARE TRENDS 2017 | PAGE 194 ROBOTS
 BYTHE
 NUMBERS HOME APPLIANCES TRANSPORTATION MACHINERY KEY INDUSTRIES USING ROBOTS CHINESE 
 ROBOTICS 
 COMPANIES 3,000 ROBOTS 
 PER 10,000 
 WORKERS 50 150In 2015 Goal by 2020 > COMPUTERS & ELECTRONIC GOODS HAX | HARDWARE TRENDS 2017 | PAGE 194
  195. 195. HAX | HARDWARE TRENDS 2017 | PAGE 195 ROBOTS
 BYTHE
 NUMBERS AVERAGE PAYBACK PERIOD
 FOR ROBOTS IN CHINA (YEARS) 0 2 4 6 8 10 12 2008 2010 2015 2017 * GLOBAL UNIT MARKET SHARE 
 TARGET (2025) 50% ROBOT PRODUCED IN CHINA 
 TARGET (2020) 100,000 AUTOMATION
 THRESHOLD:
 <2YEARS HAX | HARDWARE TRENDS 2017 | PAGE 195
  196. 196. HAX | HARDWARE TRENDS 2017 | PAGE 196 CHANGYING'S
 UNMANNED FACTORY
 HAS 60 WORKERS
 INSTEAD OF 600 ‘DARK
 FACTORIES’
 RISING IT RUNS 24/7
 PRODUCTIVITY IS UP 250% 
 DEFECTS DOWN 80% HAX | HARDWARE TRENDS 2017 | PAGE 196
  197. 197. HAX | HARDWARE TRENDS 2017 | PAGE 197 SPECS&PRICE
 MATTERMORE
 THANMAKING
 HUMANFRIENDS COBOTS
 NOT POPULAR YET
 DESPITE PROMISING PHOTOS HAX | HARDWARE TRENDS 2017 | PAGE 197
  198. 198. “Our vision system 
 allows our robots
 to locate objects to pick up, 
 and avoid collisions with workers. 
 It can save factories a lot of trouble.” INDUSTRYNEEDS
 LOW-COST
 &FLEXIBLE
 ROBOTS JOEY SONG, CO-FOUNDER
 ELEPHANT ROBOTICS (COBOTS)
 FORBES ASIA 30 UNDER 30 HAX | HARDWARE TRENDS 2017 | PAGE 198
  199. 199. HAX | HARDWARE TRENDS 2017 | PAGE 199 SOFTWARE AUTOMATES DESIGN
 BASED ON CONSTRAINTS 3D PRINTING DREAM 
 TRUE SOON? FINALLYA
 VIABLEOPTION
 FORPRODUCTION
 OFSOMEPARTS HAX | HARDWARE TRENDS 2017 | PAGE 199
  200. 200. JULIO TERRA
 DIRECTOR OF TECH & DESIGN, 
 KICKSTARTER THEMAKER MOVEMENT
 GETSNEW
 TOOLS “Though the consumer 3D printer bubble has burst, we enjoy seeing a wave of new personal fabrication tools.”
 “Desktop water jet cutters, vacuum formers, robotic arms, and circuit board printers form the next generation.” CROWDFUNDING SUPPORTS
 INNOVATION HAX | HARDWARE TRENDS 2017 | PAGE 200
  201. 201. HAX | HARDWARE TRENDS 2017 | PAGE 201 OTHERMILL 
 MILLING MACHINE VOLTERA 
 CIRCUIT BOARD PRINTER WAZER 
 WATERJET CUTTER DESKTOPMANUFACTURING
 SHRINKFACTORYTOOLS DESKTOP METAL
 METAL 3D PRINTER KNITERATE
 KNITTING MACHINE MATTHEW NOWICKI
 COFOUNDER & CTO, WAZER “The maker revolution starts with D.I.Y. and tools for hobbies & education. But consumers are very
 price-sensitive, and most cheap tools do not offer accuracy, reliability, maintenance & serviceability.” HAX | HARDWARE TRENDS 2017 | PAGE 201
  202. 202. HAX | HARDWARE TRENDS 2017 | PAGE 202 Desktop fabrication companies 
 tend to target prosumers who either make money from what the tools make or use tools to support their core activities. An ecosystem of tools is forming,
 as it exists for industry. Next up might be desktop EDMs, metal printing and fiber laser cutters. Soon, the only limit
 will be creativity. DESKTOP FABRICATION TOOLS EMPOWER PROSUMERS “ MATTHEW NOWICKI, 
 COFOUNDER & CTO, WAZER
 DESPTOP WATERJET CUTTER TO BE SUSTAINABLE, TOOL CREATORS
 MIGHT SELL PEACE OF MIND SERVICES
 (EXTENDED WARRANTEES, SERVICING PLANS), CONSUMABLES, OR ACCESSORIES
 TO AID WORKFLOW. HAX | HARDWARE TRENDS 2017 | PAGE 202
  203. 203. COPYCAT AND INNOVATOR
 AT HIGH SPEED CHINA06/ HAX | HARDWARE TRENDS 2017 | PAGE 203
  204. 204. WORLDLEADER INPATENTS SOON?
 2016 NUMBER OF APPLICATIONS BY COUNTRY (‘000) SOURCE: WORLD INTELLECTUAL PROPERTY ORGANIZATION WORLD’S #1 & #2
 IN PUBLISHED APPLICATIONS 
 TOP 10: 7 FROM ASIA, 3 FROM U.S. 4,123 PATENTS 3,692 PATENTS USA Japan China Germany South Korea France UK Netherlands Switzerland Sweden 0 15,000 30,000 45,000 60,000 -1% +3% +40% IN 2017?+45% HAX | HARDWARE TRENDS 2017 | PAGE 204
  205. 205. USA
 $14.5B CHINA
 $10.6B EUROPE
 $3B US & CHINA DOMINATE, INDIA RISING, JAPAN FAR BEHIND 1Q2017 3% 35% 4% 10% 48% USA Europe India China RoW SOURCE: DOW JONES VC EDGE 1Q 2017 EQUITY INVESTMENT BY REGION
 INTO VENTURE-BACKED COMPANIESCHINAVC
 INVESTMENTIS
 #2GLOBALLY HAX | HARDWARE TRENDS 2017 | PAGE 205
  206. 206. 01/ 02/ 03/ 04/ HEATEDMARKET REQUIRESNEW APPROACHES CHINA’S VC FUNDING IS MASSIVE
 ~2/3 OF USA, 80% OF ASIA.
 FUNDING FEVER
 COMPETITIVE AT EVERY STAGE.
 WINNER TAKES ALL
 MASSIVE ROUNDS TO WIN MARKET,
 OR M&A WITH LEADER.
 CHINESE INVESTORS LOOK ABROAD
 FOR HIGH-TECH STARTUPS
 USA, CANADA, EU, ISRAEL… MEGA-ROUNDS, MERGERS, OVERSEAS INVESTMENTS HAX | HARDWARE TRENDS 2017 | PAGE 206
  207. 207. HAX | HARDWARE TRENDS 2017 | PAGE 207 RISING
 VALUATIONS
 INCHINA MEDIAN PRE-MONEY VALUATIONS ($M) 0 5 10 15 20 25 1Q17 1Q16 0 25 50 75 100 1Q17 1Q16 0 250 500 750 1,000 1Q17 1Q16 FIRST ROUND SECOND ROUND LATER ROUND 3X 2.5X US CN EU US CN EU US CN EU SOME VCS LOOKING OVERSEAS SOURCE: DOW JONES VC EDGE 1Q 2017
  208. 208. There’s an overflow
 of funding in the market,
 especially angel funding” MEGA-ROUNDS, MERGERS,
 OVERSEAS INVESTMENTS 
 CAPITAL CONTROLS
 ON OUTBOUND INVESTMENTS
 FUEL DOMESTIC FEVER “ XU XIAOPING
 FOUNDER OF ZHENFUND
 MOST ACTIVE SEED FUND IN CHINA HEATEDMARKET
 REQUIRESNEW
 APPROACHES Source: The Information Interview, April 2017 HAX | HARDWARE TRENDS 2017 | PAGE 208
  209. 209. HAX | HARDWARE TRENDS 2017 | PAGE 209 RENTALSTARTUPS FRENZY >$2.2B
 INVESTED $127M
INVESTED $145M
INVESTED $1.4M
INVESTED HAX | HARDWARE TRENDS 2017 | PAGE 209
  210. 210. INVESTED IN 77 COMPANIES
 INCLUDING 4 UNICORN ECOSYSTEM
 30 SHIPPED PRODUCTS
 16 REVENUE >$15M
 3 REVENUE >$150M XIAOMIZATION
 CONTINUES HAX | HARDWARE TRENDS 2017 | PAGE 210
  211. 211. HAX | HARDWARE TRENDS 2017 | PAGE 211 LENOVO
 ALEXA ASSISTANT LINGLONG
 DINGDONG ASSISTANT
 JV OF JD.COM (CHINA’S ‘AMAZON’)
 & IFLYTEK (VOICE EXPERT,
 MARKET CAP: $8.2B) BAIDU & INEMO
 LITTLE FISH
 TENCENT
 QROBOT
 (2ND GENERATION)
 USES TENCENT’S
 XIAOWEI CLOUD ASUS
 ZENBO SMART COMPANION ROKID
 MELODY
 RAISED $50M SERIES B VOICEASSISTANTS
 BOOMWITH
 LOCALTECH MOBVOI
 TIC WATCH
 RAISED $252M ALIBABA
 TMALL GENIE XIAOMI
 MI BUNNY
 DESIGNED FOR KIDS
 HAX | HARDWARE TRENDS 2017 | PAGE 211
  212. 212. HARDWARE PLATFORMS SKILL PLATFORM 2) BAIDU, MOBVOI, OTHER??? VOICECONTROL
 NEXT“XIAOMIZED”? SELECT MEMBERS OF TENCENT’S
 XIAOWEI VOICE CLOUD DIDI (RIDE HAILING)
 MIDEA (APPLIANCES)
 SOGOU (SEARCH ENGINE)
 PHILIPS (SMART HOME)
 XIAOMI (SMART DEVICES) China will have dozens of Echo-like products 
 by the end of the year. We hope this will help smart home products sell.” ERIC JIANG, CEO, YEELIGHT “ HAX | HARDWARE TRENDS 2017 | PAGE 212
  213. 213. HAX | HARDWARE TRENDS 2017 | PAGE 213 VOICEASSISTANTS:
 TIPOFTHEA.I.ICEBERG… CHINA IS #2
 FOR TOTAL A.I. PATENTS
 REGISTERED SINCE 2006 CHINA WAS #1
 IN ’14 & ’15 FOR
 A.I. PATENTS FILED UNIVERSITIES DOMINATE A.I. RESEARCH IN CHINA
 (FOR NOW) HAX | HARDWARE TRENDS 2017 | PAGE 213
  214. 214. HAX | HARDWARE TRENDS 2017 | PAGE 214 
 CAR MAKERS (12 CHINESE + 2 WESTERN)
 SUPPLIERS (DELPHI, BOSCH, ETC.) COMPONENT PROVIDERS (INTEL, NVIDIA…) RIDE-SHARING FIRMS (UCAR, GRAB) MAPPING (TOMTOM) BAIDU
 SELF-DRIVINGCAR ALLIANCE BAIDU’S APOLLO PLATFORM 
 GAINS MOMENTUM 50
 MEMBERS
  215. 215. HAX | HARDWARE TRENDS 2017 | PAGE 215 A.I:TIPOF
 MUCHDEEPER INFORMATION ASYMMETRY China has a fairly deep awareness of what’s happening in the English-speaking world, but the opposite is not true.” ANDREW NG
 FOUNDER, COURSERA
 FOUNDER, DEEPLEARNING.AI
 FORMER CHIEF SCIENTIST, BAIDU
 FOUNDER & LEAD, GOOGLE BRAIN “ HAX | HARDWARE TRENDS 2017 | PAGE 215
  216. 216. MAGNET FOR LEADERS
 CORPORATIONS & TOP UNIVERSITIES OPEN BRANCHES IN SHENZHEN 01/ 02/ SHENZHEN
 THESILICONVALLEY
 OFHARDWARE SHENZHEN’S REPUTATION RISE
 WORLD’S BEST PLACE FOR “PRODUCTIZATION” HAX | HARDWARE TRENDS 2017 | PAGE 216
  217. 217. SCOTTY ALLEN ASSEMBLED
 AN IPHONE 6S IN CHINA
 FROM SPARE PARTS
 HIS VIDEO PASSED 7M VIEWS THE WIRED DOCUMENTARY
 ON SHENZHEN GATHERED
 OVER 1M VIEWS THE ECONOMIST REPORTS
 ON THE PEARL RIVER DELTA SHENZHEN
 THESILICONVALLEY
 OFHARDWARE HAX | HARDWARE TRENDS 2017 | PAGE 217
  218. 218. “In Shenzhen, making is either
 product development if you are an adult,
 or a structured curriculum if you are a child. There are almost no Chinese makers
 in Shenzhen doing it purely as a hobby. 
 However, if you are working
 on a hardware startup
 or just want to get stuff made,
 Shenzhen is pretty unbeatable.” CHINA’SMAKER
 MOVEMENT 创客 LOST IN TRANSLATION? A DIFFERENT MEANING
 FOR ‘MAKER’
 AND A DIFFERENT PATH
 FROM THE WEST EVERYONE IS A MAKER! NAOMI WU “SEXYCYBORG”
 SHENZHEN HOBBYIST MAKER Source: Exolymph News Interview, July 2016 HAX | HARDWARE TRENDS 2017 | PAGE 218
  219. 219. HAX | HARDWARE TRENDS 2017 | PAGE 219 PRODUCT CROWDFUNDING
 INCHINA ISMOSTLY
 MARKETING
 &PRE-SALES PRODUCTS OFTEN SHIP
 WITHIN 60 DAYS JD IS #1 PLATFORM
 $670M RAISED IN TOTAL 61 TECH PROJECTS OVER $1M
 ON ALIBABA’S TAOBAO XIAOMI’S PLATFORM
 WELCOMES STARTUPS POWEREGG
 DRONE
 
 RAISED $15M ON JD KAADAS
 FINGERPRINT SMART LOCK 
 
 RAISED $4.5M ON TAOBAO MOVEIT
 SMART HOME GYM
 
 $115,000 ON INDIEGOGO
 $975,000 WITH XIAOMI E-COMMERCE GIANTS DOMINATE CROWDFUNDING
  220. 220. HAX | HARDWARE TRENDS 2017 | PAGE 220 
 SOME TEST THE WATERS. SOME ARE GLOBAL-FIRST. SOME WANT SALES
 SOME HAD VC FUNDING. MOST COVER THEIR ORIGIN. MOST SHIP FAST! TICWATCH 2 BY MOBVOI
 VOICE-CONTROLLED ANDROID WATCH $2.1M ON KICKSTARTER
 RAISED $72M FROM VC BEFORE AIRBLOCK BY MAKEBLOCK
 MODULAR DRONE $830,000 ON KICKSTARTER
 LAUNCHED 6 PRODUCTSOMNICHARGE
 AC/DC & USB CHARGER $3.2M ON INDIEGOGO ALPHA 2 BY UBTECH
 SMART FAMILY ROBOT $1.4M ON INDIEGOGO RAISED $20M FROM VC BEFORE CHINESESTARTUPS CROWDFUNDABROAD
  221. 221. CHINA
 LEADSIN
 VRARCADES VR ARCADES 2016: 35,000 VR ARCADES OPENED
 2017: 12,000 STILL OPERATING
 VERY FEW TURN A PROFIT
 VR HEADSETS 2016: >200 FIRMS PRODUCING HEADSETS
 2017: <20 FIRMS STILL FUNCTIONING
 (SOURCE: IHEIMA, FEB ’17) BUT IT’S HARDLY
 GOOD BUSINESS HAX | HARDWARE TRENDS 2017 | PAGE 221
  222. 222. NEXTGLOBALLEADERS “BORN GLOBAL” STARTUPS ARE COMING INSTA360 NINEBOT MAKEBLOCK DJI UBTECH For innovation, 
 China Today is like Japan in the 80’s” SEAN O’SULLIVAN, FOUNDER, SOSV“ HAX | HARDWARE TRENDS 2017 | PAGE 222
  223. 223. SONICAM 360 4K CAMERA WITH
 360 HD SOUND
 (64 MICROPHONES) ELEPHANT ROBOTICS LOW-COST ROBOT ARM
 WITH COMPUTER VISION MOBVOI
 CHINESE-FOCUSED
 VOICE A.I. CUTTING-EDGE
 CHINESESTARTUPS
 EMERGE HAX | HARDWARE TRENDS 2017 | PAGE 223
  224. 224. HAX | HARDWARE TRENDS 2017 | PAGE 224 BUYING
 INNOVATION CHINESE APPLIANCE MAKER MIDEA
 BOUGHT GERMANY’S KUKA FOR US$4B HAX | HARDWARE TRENDS 2017 | PAGE 224
  225. 225. HAX | HARDWARE TRENDS 2017 | PAGE 225 BUYING
 DESIGN PHILIPPE STARCK 
 DESIGNED THE MI MAX HAX | HARDWARE TRENDS 2017 | PAGE 225
  226. 226. ATTRACTIVE OPTIONS 
 FOR HARDWARE STARTUPS LATESTAGE
 FUNDING
 ALTERNATIVES 07/ HAX | HARDWARE TRENDS 2017 | PAGE 226HAX | HARDWARE TRENDS 2017 | PAGE 226
  227. 227. VENTURE CAPITAL IS NOT THE ONLY OPTION HARDWARE
 ISATTRACTIVE
 TOPUBLICMARKETS VCS STILL CAUTIOUS ON HARDWARE
 
 HARDWARE HAS ADVANTAGE OF REVENUE
 01/ 02/ 03/ 04/ GROWTH AND PROFIT ATTRACT
 TRADITIONAL INVESTORS
 
 PUBLIC MARKETS & NEW FUNDING
 OPTIONS ARE OPEN TO HARDWARE HAX | HARDWARE TRENDS 2017 | PAGE 227HAX | HARDWARE TRENDS 2017 | PAGE 227
  228. 228. MICRO-CAPS AS FIRST STEP TO UNICORNHOOD? TRADITIONAL IPO
 NASDAQ OR OTHER EXCHANGES UP-LISTING
 INCUBATE ON SMALLER EXCHANGES EQUITY CROWDFUNDING
 “MINI-IPO” HYBRID IPO
 COMBINING WALL STREET & MAIN STREET REVERSE MERGER
 PUBLIC SHELLS & OTHERS ICO
 THE NEXT FRONTIER? 01/ 02/ 03/ 04/ 05/ 06/ ALTERNATIVESTO VCFUNDINGGAIN POPULARITY HAX | HARDWARE TRENDS 2017 | PAGE 228
  229. 229. B2BHARDWARE STARTUPSNEED CREDIBILITY
 TOGROW To grow in the enterprise sector it can be essential to be public.
 When a contract is $1 million it is not a joke anymore: clients make reference calls.” CYRIL EBERSWEILER
 FOUNDER, HAX HAX | HARDWARE TRENDS 2017 | PAGE 229
  230. 230. FORKLIFT ROBOTS EURONEXT IPO
 JUN 2017
 
 2016 SALES: $5.9M
 RAISED FROM VC: $11.2M
 RAISED FROM IPO: $45M
 MARKET CAP (IPO): $122M IPO SMALLER EXCHANGES
 WELCOME
 STARTUPS UNDERWATER DRONES ASX IPO
 APR 2017
 
 2016 SALES: $800,000
 RAISED FROM IPO: $5.5M
 MARKET CAP (IPO): $21M TIMING, STORY, PROMOTION,
 FIT WITH THE EXCHANGE
 ALL MATTER TO SUCCESS HAX | HARDWARE TRENDS 2017 | PAGE 230
  231. 231. HAX | HARDWARE TRENDS 2017 | PAGE 231 CYBERDYNE
 TOKYO STOCK EXCHANGE 2016 SALES: $15M
 2016 LOSS: $7M MARKET CAP: $2.9B
 = 190X SALES FITWITH EXCHANGE HAX | HARDWARE TRENDS 2017 | PAGE 231
  232. 232. FROM ETC TO NASDAQ
 RAISED $20M ON OTC (2014) RAISED $11.7M ON NASDAQ (2015) PROCESS TO UP-LIST WAS
 3 MONTHS ONLY UP-LISTING EKSO BIONICS HAX | HARDWARE TRENDS 2017 | PAGE 232
  233. 233. JOBS ACT
 REGULATION A+ STARTED JUNE 2015
 RAISE UP TO $50M
 FROM THE PUBLIC KNIGHTSCOPE
 SECURITY ROBOTS RAISING $20M
 $80M PRE-MONEY MINI-IPO HAX | HARDWARE TRENDS 2017 | PAGE 233
  234. 234. HYBRID IPO FIRST REG A+ IPO
 ON NYSE (JUN 2017) MYOMO MEDICAL ROBOTICS RAISED FROM IPO: $4M PRE-MONEY: $35M REVENUE: ~$1M WALLSTREET MEETS MAINSTREET HAX | HARDWARE TRENDS 2017 | PAGE 234
  235. 235. HAX | HARDWARE TRENDS 2017 | PAGE 235 WITH FUNDRAISE OPTION BORQS - IOT DEVICES & SOLUTIONS PREPARING NASDAQ MERGER IN 2017 FASTBRICKS ROBOTICS
 BRICK-LAYING
 CONSTRUCTION ROBOT MERGED ON ASX IN 2015
 RAISED AU$5.75M
 MARKET CAP: AU$92M REVERSE
 MERGER FASTER (4 MONTHS VS. 6~12)
 CHEAPER (OFTEN < $500K)
 KEEP GREATER OWNERSHIP
  236. 236. ICO - INITIAL COIN OFFERING NEXTSTEPAFTERCROWDFUNDING? FITWITHHARDWAREUNCLEARYET HAX | HARDWARE TRENDS 2017 | PAGE 236
  237. 237. WORLD’S MOST ACTIVE EARLY STAGE INVESTOR IN HARDWARE ABOUTSOSV&HAX HAX | HARDWARE TRENDS 2017 | PAGE 237
  238. 238. 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 776.65.8 576.65 №1 EARLY STAGE INVESTOR №1 FEMALE FOUNDERS №1 CROWDFUNDING№1 IOT №2 SEED INVESTOR GLOBALLY HAX | HARDWARE TRENDS 2017 | PAGE 238
  239. 239. 70% 30% HARDWARE LIFE SCIENCES FOODSOCIAL & MOBILE INVESTEDACROSS4DEEPTHEMES HAX | HARDWARE TRENDS 2017 | PAGE 239
  240. 240. $150M SOSV FUND III $300M ASSETS UNDER MANAGEMENT Q12018 FIRST CLOSE 
 FOR FUND IV HAX | HARDWARE TRENDS 2017 | PAGE 240
  241. 241. HAX | HARDWARE TRENDS 2017 | PAGE 241 68
 GROWTH
 STAGE 155
 SEED
 STAGE HAX | HARDWARE TRENDS 2017 | PAGE 241
  242. 242. HAX | HARDWARE TRENDS 2017 | PAGE 242 INDUSTRIAL CONSUMER HEALTH ENTERPRISE 10 20 30 40 2012 2013 2014 2015 2016 HAXSEED
 INVESTMENTS
 PERYEAR HAX | HARDWARE TRENDS 2017 | PAGE 242
  243. 243. WWW.SLIDESHARE.COM/HAXCO MORE HAX
 REPORTS

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