This document outlines the Lean Hardware philosophy of HAX, a hardware startup accelerator. It emphasizes validating problems, partnering with factories, fast iterations to market, capital efficiency, user backing, and sustainability over growth. It warns against "wares" like fun products with no business, easily copied ideas, same solutions as competitors, and products without addressing real problems. It discusses the challenges of prototyping, manufacturing, distribution, and scaling hardware startups.

1. H
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STARTUPS
CYRIL EBERSWEILER
FOUNDER, @HAXLR8R
BUILDING
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2. Startup Accelerator for Hardware
From Prototype to Business
In Shenzhen San Francisco

3. NAA (NOT ANOTHER ACCELERATOR)
“OH NO, NOT another accelerator, you
may think. But this one is different.”
#hax

4. LEAN HARDWARE PHILOSOPHY

5. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume

6. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate

7. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles

8. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive

9. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed

10. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed
6. Sustainable vs. Growth at a loss

11. LEAN HARDWARE PHILOSOPHY
1. Validate problem vs. Assume
2. Partner w/ factories vs. Abdicate
3. Fast to market vs. Long cycles
4. Capital effective vs. Capital intensive
5. User backed vs. Venture backed
6. Sustainable vs. Growth at a loss

12. YESTERDAY @ HAX
2
robot-as-a-service
2
sports tech
2
health tech
1
green tech
1
3d printer
1
connected camera
1
smart city logistics

13. KICKSTARTER LAUNCHES
Quitbit / Shot Stats / Niwa / Syrmo
www.kickstarter.com/haxlr8r

15. M
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F
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DISTRIBUTION
POSITIONING
prototyping

16. POSITIONING

17. BEWARE
OF THOSE
“WARES”
wow
such excite
very hardware
so future

18. TWELVE “WARES” TO AVOID
1. FUNware
No business

19. TWELVE “WARES” TO AVOID
1. FUNware
No business
Kenji Kawakami
Chidogu pioneer
(with tissue roll headgear
+ Fail-proof eyedrop glasses)

20. MORE CHINDOGU
Baby mop
Open eyes stickers

21. TWELVE “WARES” TO AVOID
1. FUNware
No business
(includes NICHEware and ARTware)

22. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible

23. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
“Two sensors
and an app”
Nobel-grade
research

24. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
PRESSY ($27)
Funded Oct 2013
Raised $695,000

25. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
Speed Button ($10)
(“kuai anniu”)
Funded Jan 2014
Raised $34k

26. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
Xiaomi MiKey ($0.8)
Launched April 2014
“If Xiaomi starts producing
buttons like Pressy,
we will start to produce
smartphones.”

27. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning

28. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
“Built a better mousetrap and the world
will beat a path to your door”
Ralph Waldo Emerson
(maybe)

29. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
The problem with mousetraps
• 4,400 patents
• 400 applicants per year
• “most frequently invented
device in U.S. history”

30. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
“When you have a hammer, everything looks like a nail”

31. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made

32. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made

33. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec

34. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing

35. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors

36. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins

37. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it

38. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it
11. FUTUREware
No market before years

39. TWELVE “WARES” TO AVOID
1. FUNware
No business
2. EASYware
Not defensible
3. SAMEware
Bad positioning
4. SOLUTIONware
Solution looking for a problem
5. VAPORware
Can’t be made
6. LAMEware
Not on spec
7. FAILware
Successfully built the wrong thing
8. LATEware
Validated market but woke up competitors
9. LOSSware
Minimal or negative margins
10. BOREware
People stop using it
11. FUTUREware
No market before years
12. LOCALware
Too tied to a local ecosystem

40. NOT JUST HARDWARE
• Pure hardware can be copied
• Combine Hardware Software
• Community (GoPro, Makerbot, Glass…)

41. F
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42. TIMEFRAME
$
PROTOTYPING
PRODUCTION
SCALING
3 months ~ 2 years
3 months ~ 2 years
1+ year
TIME

43. TIMEFRAME
$
PROTOTYPING
PRODUCTION
SCALING
3 months ~ 2 years
3 months ~ 2 years
1+ year
TIME
ARE YOU REALISTIC? SOME THINGS TAKE TIME

44. TIMEFRAME
$
PROTOTYPING
PRODUCTION
SCALING
3 months ~ 2 years
3 months ~ 2 years
1+ year
TIME
ARE YOU REALISTIC? SOME THINGS TAKE TIME
ARE YOU TOO SLOW? MAYBE YOU NEED HELP

45. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
TIME

46. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Accelerators
Angels
TIME

47. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Pre-orders
TIME

48. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Bridge of Death
Pre-orders
RETAIL CHASM
TIME

49. THE RETAIL CHASM
PROTOTYPING
PRODUCTION
SCALING
$
Founders
Friends
Family
Fools
Crowdfunding
Accelerators
Angels
Sales
Factoring
Banks
VCs
Bridge of Death
Pre-orders
RETAIL CHASM
TIME

50. SAVE YOUR CASH FLOW!
Pre-sales (best!)
Credit from supplier (it’s like a bank loan!)
Factoring (purchase order financing)
Bank credit lines
Revenue-based financing
VC (most expensive money!)

51. DISTRIBUTION

52. SCALING STEP BY STEP
$
Bridge of Death
TIME
Direct

53. SCALING STEP BY STEP
$
Bridge of Death
TIME
Online
retailers
Direct

54. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Online
retailers
Direct

55. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Big box
retailers
Online
retailers
Direct

56. SCALING STEP BY STEP
$
Bridge of Death
TIME
Specialty
stores
Big box
retailers
Online
retailers
Direct

57. LEAN RETAIL RULES
Keep demand higher than distribution
Your customers are your best investors
Retail is not a sprint. Learn at each step
Cash flow is king

58. LEAN HARDWARE PHILOSOPHY
1. Validate problem
2. Partner with factories
3. Fast to market
4. Capital effective
5. User backed
6. Sustainable

59. LEAN HARDWARE PHILOSOPHY
1. Validate problem
2. Partner with factories
3. Fast to market
4. Capital effective
5. User backed
6. Sustainable
HAX philosophy
Meaningful products
Aligned with founders

60. A
P
P
L
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N
O
W
@HAXLR8R
WWW.HAXLR8R.COM
THANKS!
www.slideshare.com/haxlr8r