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Software is from the Bay, Hardware is from Shenzhen
The document outlines insights from Cyril Ebersweiler regarding hardware startups, emphasizing key strategies for success, such as prioritizing design with the right components and establishing strong partnerships with factories. It shares valuable lessons learned from experiences with various hardware projects, highlighting the evolution of manufacturing in Shenzhen. Ebersweiler argues that having a purely hardware sales business model may no longer be sustainable, stressing the importance of adopting the right business models.
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Software is from the Bay, Hardware is from Shenzhen
- 2. Partner/ Founder Cyril Ebersweiler/ 希雷 / シリル Mentor / Speaker Investor - Software +50 Investor - Hardware +33
- 3. HW is thenew black
- 4. 200,000 HW BACKERS HW BACKERS% 195,449 5.83 150,000 6 4.5 100,000 3 93,870 2.09 50,000 1.5 1.33 19,181 0 2011 2012 500 HW PROJECTS 400 300 1.57 446 375 121 0.46 2011 1.5 250 248 200 0 TOTAL $M 2 365 100 2013 HW Funding HW PROJECTS % 0 1 0.5 0.59 209 125 94 2012 2013 0 52 0 2012 2013 (RR)
- 5. I SCORED $1MON KICKSTARTER! Now what? The Plan SHIP IN 3 MONTHS START PRE-ORDERS RETAIL IN 6 MONTHS C.E.S. IN JANUARY RAISE $10M
- 6. Market Timing Planning Fundraising Problem Solved Supplier(s)Selection Branding Team ME/EE/SW/DE/BIZ Design for Manufacture Marketing Prototyping Materials Selection Financing Industrial Design Sourcing Crowdfunding Phase 1 Prototyping Phase 2 ? Phase 3 Profit Software Soft/Hard Tooling Payments Firmware Quality Management Customer Service BOM Certifications Distribution GERBER Testing PR CAD Assembly Fulfillment
- 7. Market Timing Planning Fundraising Problem Solved Supplier(s)Selection Branding Team ME/EE/SW/DE/BIZ Design for Manufacture Marketing Prototyping Materials Selection Financing Industrial Design Sourcing Crowdfunding HW is not SW Phase 1 Prototyping Phase 2 ? Phase 3 Profit Software Soft/Hard Tooling Payments Firmware Quality Management Customer Service BOM Certifications Distribution GERBER Testing PR CAD Assembly Fulfillment
- 8. “No business plansurvives contact with the customer” #LEANSW
- 9. “No hardware plansurvives contact with a factory” #LEANHW
- 10. IN 2000, SHENZHENMADE THINGS... LOW LABOR COST SUBSIDIZED CURRENCY DUBIOUS QUALITY
- 11. IN 2013, SHENZHENMAKES THINGS... (REALLY) FAST AT SCALE FLEXIBLY HIGH QUALITY and still CHEAPER
- 12. HW STARTUPS WINWHEN... FIRST TO MARKET GET SCALING EFFECTS KEEP ITERATING BRING COGS DOWN
- 13. 111 DAYS AVID 60 GLASS $50K TECHSHOP $300K $10s ofMs ATARI XBOX ;-)
- 14. 5 THINGS WELEARNED with 30 startups at HAXLR8R (and investing in some more) #LEANHW
- 15. “Some components seemedtotally commoditized yet turned out to be difficult to source. So we had to replace them and re-design our circuit board during the sourcing process.” Zach Supalla (founder of Spark.io) RULE #1 DESIGN WITH THE RIGHT COMPONENTS #LEANHW $575K
- 16. “Visiting a factoryin person early in the design process brings better design results. Their engineers can open up new possibilities. Design with your factory.” - Bunnie Huang (hacker of the Xbox) $550K RULE #2 A PROTOTYPE IS READY WHEN IT CAN BE MANUFACTURED #LEANHW
- 17. $580K let’s cook better “Notevery product can be made in a toy factory. Your factory will make or break you, so pick wisely. Do not have a third party between you and your key suppliers.” Zach ‘Hoeken’ Smith (founder of Makerbot) RULE #3 YOUR FACTORY IS YOUR MOST IMPORTANT PARTNER #LEANHW
- 18. “If you thinkthat brand is as simple as hiring an agency to create your logo, you have a very long road ahead of you. The first step is understanding that brand is everything you represent.” Marc Barros (founder of Contour) RULE #4 BE MEMORABLE #LEANHW $291K
- 19. “The truth isthat if your business model is purely hardware sales today, your business is essentially over.” Jay Goldberg (Venturebeat) $130K Fantasy comes to life RULE #5 PICK THE RIGHT BUSINESS MODEL(S) #LEANHW
- 20. It used tobe made in Shenzhen Now it is designed with Shenzhen
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- 29. JOIN US IN SHENZHEN! ApplyNOW MAKEIT @ HAXLR8R.COM
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